Choosing A Winning Options Signals Service

/> Seems pretty straightforward and that brings us to our first point on options signals services. If you’re a new options trader, make sure your signals service is applicable for beginners. Recommending puts and calls is one thing, but if you’re a beginner that uses a service that recommends straddles, strangles, condors and other more advanced strategies, at the very least you’ll be confused and probably lose some money in the process.

The next thing to look at, and this is no less important than ease of use, is the long-term performance of the service. A truly legitimate signals service will furnish recent and long-term trading results INCLUDING the losers. Run away from any service that says it’s 100% accurate. There’s nothing wrong with having a few losers here and there. That’s just part of investing, but we obviously want to use signals services that can substantiate a history of options trading success.

Reasons Behind The Trades

Anyone can recommend an options trade, but not everyone or every system can tell you why that trade looks good. The service that tells you to buy those Exxon calls had better be able to realistically tie that recommendation to a catalyst such as a looming earnings report, recent upticks in call buying on Exxon, oil price increases, a bullish chart pattern that has emerged, etc. In other words, the signal service needs to give you some fundamental or technical reason to lay your money on the line with this trade. You need hard facts, not gut feelings or tarot card readings.

Look Into The Past To Get A Read On The Future

Investors should always remember that past performance is not an indicator of future results, but with signals services, we should take the time to look at as much

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