The best options trading alert service is the one you create yourself with AIM
When you are investing with options it is crucial that you get your timing right. Options are more volatile than the stocks they are tied to. Option prices move very fast. Options investors also have more leverage. One contract of long-term options (LEAPS) has 100 options.
For all of these reasons, the timing of your trades is very important!
This is why so many investors are looking for the best options trading alert service to tell them when to buy or sell.
But considering only the WHEN of a trade misses two other questions that are actually MORE IMPORTANT.
WHY are you making a particular trade?
And HOW MUCH are you going to trade?
Also, we should ask, WHICH company stock options are you trading??
What is the point of having a great options trading alert service if you aren’t 100% sure that you are making the RIGHT trade on the RIGHT COMPANY for the RIGHT reason?? And that you are doing the trade for the RIGHT amount??
Fortunately, there was a brilliant investor named Robert Lichello who created an investing method many years ago called AIM. He wrote about this in his book How to Make One Million Dollars in the Stock Market – Automatically!
AIM is Automatic Investment Management.
Lichello developed and taught this AIM method with stocks. He profited greatly from it, as did others who learned how to use his method.
Basically, AIM uses math and logic to calculate at what point it makes sense to buy low, sell high, or do nothing. Another essential feature of AIM is to keep roughly 50% of your portfolio in cash or a cash equivalent. This serves several smart purposes for an investor. It protects you from a market crash. It provides a source of funds to quickly purchase more investments when the price drops. And it serves as an emergency fund if you should need it.
I was one of the students of Robert Lichello’s AIM investing method when I was an Auditor in the US Army stationed in Korea.
That was many years ago… AIM helped me earn profits that helped me take care of my family and have a nice retirement in San Antonio, Texas.
AIM with Stock Options – Lichello never did this!
Then in the 1990’s I learned about long -term options or LEAPS. If you have a scientific and proven method to always buy low, sell high, and earn profits when market prices go up and down, applying this method to options is much more profitable than the stocks!
Returning to the topic of the best options trading alert service, let’s look at an actual example what happens when you use the trading notifications that AIM tells you to use.
In my monthly JJJ Investing Services Newsletter, I track 7 investment portfolios. Once a month (and only once a month!) I check the prices of every company in each portfolio. Using the AIM method, I decide if that company stock or option deserves a buy, a sell, or a hold.
In January 2014, I started this “paper trading” with the 10 top companies of the Dow Jones “Dogs of the Dow.” The Dogs are the companies with the highest dividend relative to their stock price.
The portfolio has 10 companies. Every investment portfolio needs adequate diversification! The ten companies include Coca-Cola, Verizon, Intel, IBM, Walgreens, and 3M. You’ll see the full portfolio below.
But I didn’t just start paper trading these 10 company STOCKS in January 2014. I also started paper trading their LEAPS or long term options!
In both cases, I used AIM as first developed by Robert Lichello. Take note – LEAPS didn’t exist when Lichello created AIM! LEAPS are much safer and easier to trade than short- term options. I wrote about all the reasons why in my books which you can find on Amazon or other bookstores.
I’m sure Lichello would have loved his AIM method with LEAPS if he could have used them. Now you have me to teach you how to profit with them!
Here is the example. Look at the DOGS OF THE DOW PORTFOLIO of STOCKS. It has increased 105% since January 2014. I started with $60,000 ($6,000 in each of the 10 companies). Now that value is $122,859.
By comparison, if you had simply bought and held these stocks from January 2014 to March 2022, your portfolio value would have increased by just over $13,000 to $73,000, or an increase of 21%. (Appreciation from WALGREENS is ignored because that was not in the original portfolio in 2014.)
AIM consistently and reliably earns higher profits over the long term – even when you only check your prices once a month!
What if the best options trading alert service is only your calendar? When you flip the page it’s time to check your portfolio and decide whether to buy, sell, or do nothing based on the AIM formula!
But let’s look next at how much better LEAPS do with AIM. Here is the exact same portfolio of companies I started with in January 2014. Look at how well the long- term options performed over the same time period:
The DOGS OF THE DOW PORTFOLIO of LEAPS has increased by 962%!! The same $60,000 with the same companies has increased to $637,185!
If you found this article because you are investing in stock options, how have your returns compared to results like this?
I hope you are intrigued. Hopefully motivated to learn more. Let’s get back to the point of this article.
How could you have a good options trading alert system that would tell you when to make the buys and sells to achieve this fantastic growth?
I definitely did have a lot of buys and sells over time. (Even if I was only checking once per month!)
When you use AIM to calculate your next buy and sell, it tells you how many options to trade, and what price they should be at.
You place a LIMIT ORDER for each of these trades in your brokerage account. So, for every holding you will have TWO limit orders – one for the BUY and one for the SELL.
These two trades are calculated scientifically and logically. No emotion! No stress!
As long as the price of your options stays within these two prices, AIM tells you the price isn’t high or low enough to justify a trade. Your LEAPS sit there happily and do nothing while they wait for the next trade.
Then when the price changes to reach either limit order, your trade executes automatically because you place limit buy and sell orders.
You get an alert from your account that you had a trade. That is your alert that something happened!
Now you log into your account to see what the trade was. You should confirm it was the same trade that you had calculated with AIM in your spreadsheet – sometimes you will get a lower buy price than your limit buy price and sometimes get a higher sell price than your limit sell price!!
If you are my client, this is when you call or text or email me to tell me about your trade. Then I quickly update your spreadsheet for you and give you your next buy and sell.
Then you update your brokerage account with the next buy and sell. (Also remember to cancel the other previous limit order that didn’t execute so you don’t get confused by that and have an additional trade that you don’t want anymore.)
There is your answer – the best options trading alert service is the automatic notification from a brokerage account that tells you that you had a trade that you had programmed in ahead of time!
With this system, you aren’t checking the prices 15 times a day and feeling stressed out. You aren’t wondering if it is the right time to buy or sell. You aren’t nervous about being able to act on an alert as soon as you receive it.
“I really enjoy not having to watch my [option] position and worry what it might do. With AIM, my action is already determined for me. Makes for stress free investing.”
– H.B. (a happy former client of Jeff Weber)
I have been teaching people how to invest with AIM for over 30 years. Now that we can earn even more profits with LEAPS, I want to help more investors be successful with options investing.
If you want to stop worrying about what best options trading alert service you should use, contact me or buy one of my books to learn why the best options alert is the brokerage account notification that you had a successful options trade from a limit order you had already put in yourself!
Want to learn how to calculate your options trades ahead of time using the scientific and logical AIM formula? Get my latest and greatest book on investing (it was the Amazon #1 New Release in Options Trading) AIM for Millions With Stock Options.
DISCLAIMER:
Jeffrey Weber is not an investment adviser and gives only his personal view and opinion, never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment adviser.