The TIME STRATEGY is new for us … and VERY different!
The new EWO Time Strategy that we’re launching in 2022 is very different than our other trade alerts services for a very good reason. That’s because it was because it was intended to make getting started in option trading easier.
Over the past few years of operating the EWO Trade Alerts services we’ve learned a lot about helping people get started in option trading. Even though everyone can look at a long-term track record and agree that EWO performance over the long term has been strong, on a day-to-day basis option trading is still stressful. Watching positions in the red and having the confidence to stick with trades that have moved against you is hard. Add to that, the sinking feeling of a position expiring worthless or not making a profit because implied volatility has dropped even though your stock moved as expected. In summary, getting started in options is tough!
Consequently, we’ve designed our new Time Strategy to be very different form the existing EWO Impulse and Volatility Strategies. Let’s count them off below.
#1 – Benefits from Theta Decay
Unlike our other strategies, the Time Strategy benefits from time decay using options strategies, such as calendars, diagonals, and butterflies, which involve selling options to collect premium while covering risk using a spread. This is dramatically different from the strangles, debit spreads and straight put or calls which have been the primary workhorses in our other strategies.
#2 – Preserves More Capital
The Time Strategy also helps preserve capital in your trading account, which is important particularly for new traders or those with smaller accounts. Because you are collecting premium from a front month option. This has a substantially different effect on your account in comparison to positions used in the volatility strategy and impulse strategy which require a significant outlay to establish positions.
#3 – Limits Time In Trade
Because the primary thrust of the strategy is to sell a front month option and collect the premium, most of these trades are completed within three weeks. Again, this is different from our existing strategies that historically have on average taken approximately 50 trading days to complete trades.
#4 – Improved Win ratio
Obviously a very different, and major feature of this strategy is the fact that trades are selected using a sophisticated AI algorithm. This process has resulted in over 80% win ratio and while past results are no guarantee of future performance, trading since the service was released has shown better than expected results.
#5 – Profits in Different Conditions
A very important difference is that the new EWO Time Strategy benefits when markets are trading sideways. This is obviously very different than both the Impulsive and Volatility strategies which require a market to move substantially. In the case of the Volatility Strategy the Strangle is set up so that the market can move either up or down, while the impulse strategy selects a specific direction. This means that Subscribers with all strategies have all market conditions covered which is important as stocks in different sectors rotate through different patterns at different times.
#6 – Provides More Opportunities
Adding the EWO Time strategy also just adds more opportunities. One of the challenges we’ve had in the past has been going through periods where finding sufficient new trades that meet our criteria is difficult. Adding the Time Strategy means we’ll have more trading activity to share with subscribers.
#7 – Allows Smaller Positions
A difference with the Time Strategy is that on average the basic entry price for an option strategy is less than either the Impulse Strategy or the Volatility Strategy. This provides subscribers, particularly if they are new traders, with an additional way to be able to limit risk by scaling down from number of contracts in the recommended entry position
In summary, we are very excited to be adding the Time Strategy to the list of available strategies. We’ve also re-vamped our structure to a simple choice of three levels depending on how many of the strategies you wish to access. You can see more details here on our website.
Elliott Wave Options (“we” or “us”) is not registered as an investment adviser in the United States. Elliott Wave Options relies upon the “publishers’ exclusion” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Elliott Wave Options does not offer or provide personalized advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalized advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as a solicitation by us to effect, or attempt to effect, any transaction in a security. Investments in the securities markets, and especially in options and futures, are speculative and involve substantial risk.The information that we provide or that is derived from our website should not be a substitute for advice from an investment professional. We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from us or derive from our website. Only you can determine what level of risk is appropriate for you. By using our website you acknowledge you have read our full Risk Warning disclaimer located HERE.
DISCLOSURE FOR AUSTRALIAN RESIDENTS
This site and the information provided on this website is owned by Financial Systems Pty Limited ACN 105 216 340 (Trading As Elliott Wave Options) and the holder of an Australian Financial Services Licence (No: 241060) (“EWO”). In providing the information on this Website, EWO is not providing advice and does not take into account the investment objectives, financial situation and particular needs of any particular person. Investments in securities or derivatives involve risk. Before making an investment decision, an investor needs to consider, with or without the assistance of a Securities Adviser, whether the information on this Website is appropriate in light of their particular investment needs, objectives or financial circumstances. By using our website you acknowledge you have read our full Risk Warning disclaimer located HERE.