Posts Tagged ‘options software’

The Options Toolkit by San Jose Options Mentoring

Thursday, May 13th, 2010

Guess what option traders? There’s a new options back-tester on the market that you need to know about. San Jose Options has just released the Options Toolkit which can back-test option strategies instantly and gather you organized data, helping you construct new trades with further confidence.

I am very excited about the new software, and to give you an idea of the power of this monster, listen to this. What used to take weeks of research using other options back-trading software, now can be done in the Options Toolkit in just 1.2 seconds!

Just think of the value this software brings to the table. How many hours have you lost in your life by manually back-testing your option strategies? Now you can spend less time doing the research and more time trading. This is a product that will really change the way option traders invest.

My Personal Trading Results for Week 1

I just started using the Options Toolkit, and I made over 30% the first week. I traded 4 different stocks. On 2 of them I made 16% and 17% and the other two trades canceled each other out. I used the software to find the trades, back-test them and give me the data I needed to make these trades with confidence.

Again, using other popular, options software can take several weeks just to gather the information that the Options Toolkit can provide me in 1.2 seconds. I personally don’t have the time or energy to back-trade by hand anymore. I’ve spent so many hours of my life doing it, and I can say I am so grateful to San Jose Options for developing the Options Toolkit. This is the options tool that I have really been waiting for.

Let me give you a quick example of what the Options Toolkit does for me. I type in the symbol AAPL, set my parameters, click GO and wallah! I quickly see that AAPL has averaged over 20% during earnings over the last few years. Hmm, this looks like an interesting trade. I think I’ll bookmark it. Now, let’s see what would happen if I did the same strategy on PCLN…well, just the opposite. PCLN averaged a loss of 25% on this same strategy over the last few years during earnings announcements. However, this is great news. This means that PCLN can average 25% over earnings if I just reverse this strategy…not a bad idea.

Well, I hope you understand what I am saying here. If you don’t see the value, then you probably haven’t spent much time back-testing. Back-testing is one of the best things an option trader can do. If you want to learn how to trade, then I’d really recommend it for learning adjustments and seeing what you can expect to make or lose on a trade.

Learn more about the Options Toolkit and the San Jose Options Mentoring Program, please visit www.SJOptions.com and receive your Free 45 Minute Video on Option Trading Greeks. Learn what Low-Stress Option Trading is all about.

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Options Backtesting Software

Thursday, March 11th, 2010

Hello there, I sure hope your Option Portfolio is growing. This is the second article in a series of six articles. This also includes a video for each article for you to follow. If you want to be successful in learning to trade options, you will need to watch all six videos.

A very important step in learning to trade options is to spend a lot of time back testing your trades. There are just a few option software programs on the market at this time that can help you with this task, but learning to trade without costing you a dime is worth your time. I learned a lot by using Optionvue and/or Think or Swim to back test my option trades. These two software bundles have been very good, but now San Jose Options has just released a new type of back testing tool called the “Options Toolkit.” With this back tester you will save a lot of time in comparison to any other options testing software.

It would take me one hour to back test one year of trading a Condor with the Optionvue software. When I used Think or Swim it would be a little faster, but I would get less information. Now, by using “Options Toolkit” I actually gather more organized data in about 2 seconds to back test one year of Condor trades. It’s really a great program!

Another step in finding success is simply trading for many years. We all call it “experience”. The reason behind this is the stock market is constantly changing. In order to see all sides of the market, we need to trade for many years. There is no other way to gain this kind of “experience”.

Paper trading is the perfect way to learn how to trade options. It is very easy to start. You can open up a free paper trading account with Think or Swim and/or almost any other options broker. You will need to practice and this gives you a good, safe way to do that. It may be difficult at first, but you need to paper trade for at least six months to a year; this is very important. Remember, it is very important to gain experience over time, seeing all sides of the market, and paper trading is one way to gain this experience without risking any money.

Finally, you should keep about 25% of your capital in cash. This is so very important! All of your trades, even the best option trades, will always require adjustments. You will need extra cash in order to make these adjustments. It is very dangerous to use all of your spending money in your trading account, for when it is gone, there is nothing to make adjustments with. Every option trader will leave a lot of money in cash so he can make those adjustments. You will need cash to manage your account and to lock in profits as needed. Keeping cash on hand helps you to be a successful trader.

Looking to find the best deal on Options Backtesting Software, then visit www.sjoptions.com to find the best advice on Trading Options and education.

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How to Become a Successful Option Trader

Friday, November 6th, 2009

Welcome to part two of a video series of six on how to trade options successfully. There is some really good advice in these articles and videos, and if you are seriously interested in becoming a successful options trader, then I highly recommend that you spend one hour of your life watching these videos. You can find them all on You Tube.

One very important step on the way to becoming a successful options trader is simply back testing. That testing might not be the most enjoyable things to do, but if options are actually interesting to you, then it can be somewhat fun. However, in the past it has been a very tedious job indeed, but now that San Jose Options has released a new instant back tester called the Options toolkit, back testing can now be done in a matter of seconds instead of hours.

For example, it used to take me one hour to back test one year of trading a Condor in the Optionvue software. Using Thinkorswim it’s a little bit faster. Now, in comparison, to do the same job and actually gather more organized data, it takes about 2 seconds to back test one year in the Options Toolkit. It’s really phenomenal.

Experience is another key to finding success as an options trader. The reason is that the stock market changes constantly, and if you do not have years of experience, you will always be surprised by the next move. Having experience helps understand the market in a deeper way which is very important when it comes to making adjustments on your option trades. Experience traders also do not panic like to beginners do, and this can really make a big difference at the end of the year.

Trading with paper money is another great way to become a better options trader. Most option brokers on the market offer a paper trading account. I personally like what Thinkorswim has to offer. I find their software very robust for trading options, and their paper trading accounts uses the same software as the real account, so it’s a great way to learn. Obviously, it’s a good idea to make consistent returns in your paper trading account for several months before entering option trades with real money. As stated before experience is very important because the stock market changes rapidly and wears many faces.

In the last part of this video we discuss why it’s important to keep about 25% of your money in cash. Good option traders know how to make adjustments, they know how to lock in profits, and they need this money to do just that. It’s never a good idea to use up all of your capital in your trading account. This can lead to serious problems. So again, if you want to become a good option trader, then leave plenty of money in cash so you can always do what you need to do.

For Personal Guidance on Finding Success with Option Trading go to the San Jose Options Course at www.sjoptions.com

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