Options AutoTrading Service

by admin on December 2, 2009
in Option Picks

The Options AutoTrade Service is very close to launching. Here is a general idea as to what it is and how it works.

What is Autotrading?

Autotrading entails trades being executed by a broker on your behalf based on the trade alerts of a newletter or stock/option picking service.

Give me more details. How exactly does it entail?

  1. You would join a service such as NakedOptionsTrader.com.
  2. You would then open a brokerage account at a broker that has partnered with NakedOptionsTrader. Right now that broker is TradeKing, but we expect others to be added in the next few months.
  3. You tell the broker: “I want to be part of NakedOptionsTrader’s newletter alert service,” and then you instruct the broker how to trade the alerts such as: “buy 500 shares of each alert” or “designate 20% of my portfolio to each alert” etc.
  4. The broker will contact NakedOptionsTrader to verify that you did indeed subscribe to the service.
  5. When NakedOptionsTrader has a trade alert, they send it to the broker, and the broker executes the trade on your behalf.

Simple as that. You of course can monitor your open positions and closed trades every day and can removed yourself from the service at any time. I guess you can say it’s similar to investing in a mutual fund or hedge fund except 1) there’s much more transparency, 2) you can remove yourself from the service at any time and 3) instead of paying a management fee based on your portfolio size or paying a percentage of the profits generated, you pay a fixed monthly fee.

It goes without saying you need to be familiar with NakedOptionsTrader’s style so you know how much to allocate to each trade (i.e. if the service typically has 2-3 open positions at any time but never more than 5, this will help decide how much to put into each alert).

NakedOptionsTrader has no knowledge of how big your portfolio is or now much you’re putting into each trade – they just send the alerts.

Who typically subs to autotrading services?

People of all walks of life. Some are good traders looking to diversify. Some are average or below average traders who like the idea of someone with a proven track record dictating what is bought and sold and when. Others invest in numerous autotrader services the same as they may invest in numerous mutual funds.

I’m interested…

The service will be available very soon. It’s highly recommended you take a free 4-week trial, so you can see how the service operates. Also, to get the ball rolling, if you don’t have an account with Trade King, open an account.

As a bonus, anyone who takes the free trial will gain access to the Leavitt Brothers reports, Market Window and Message Board.


Comments

11 Responses to “Options AutoTrading Service”
  1. s d says:

    cost of trades and amount of deposit?

  2. Mike says:

    Hi,
    I am taking the trial, (few weeks now) how do i gain access to Leavitt Bros. ?

  3. Ricardo says:

    Please give me mor details about this new service. Thank you very much.

  4. Ed Weisshaar says:

    What would be the minimum account deposit to open an account? What is your recommended deposit for the account to make it effective? What are the various fees involved?

    • Jason says:

      Ed…

      The cost of the service is $99/month right now.

      You are responsible for commissions charged by Trade King which happens to have among the lowest commissions out there. The commissions are the same as if you executed the trades yourself.

      I’d say the minimum deposit is $10K….$15K isn’t a bad number to start with. Start small and let Mike prove his track record is legit. Then you can deposit more and/or increase your position size.

      Jason

  5. Steve says:

    This service looks good. It seem to take the emotions out of trading options.

  6. Don Mowles says:

    Jason, Is membership to Naked Options Trader a month to month deal?
    How much slippage from your posted buy and sell price of trades should I expect to incure?
    What will be the impact on prices in and out of trades be for the increase in membership over time? Would you ever cap the membership?
    Thanks Don

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