Option Trading Signal Services

By Clark Kenada

An option trading signal service is also known as an options newsletter or options "advisory" as a source of information for potentially profitable options trades. The question is how do you know what is a good option trading signal service?

There are various factors involved that create a successful options trading signal service. Most of which comes from the experience of the people running that option trades service. It is important that the person running the service has a lot of trading experience. More so is important that the option signals are based off a stock trading system upon which options are traded which can provide more consistent returns versus just someone guessing based on their "intuition".

There many styles of option trading signal services available. Question is what style of trader are you?

Are you looking for quick gains in option trades? Are you looking to swing trade options?

Are you looking to ride bigger trends of options?

Are you looking to capture premium decay?

Are you looking to take out price ranges that cover market conditions from training to down trending to range bound?

These are some of the considerations for you to ponder upon before you even search for an options trading service. That said some options trading signal services are not available or at least good ones are not available for the style that you may desire. Also new option trading services continually present themselves.

What is the ultimate goal for you and option service?

How reliable is the track record that option service? Sometimes you are never going to know until you try the service. And that said, most often after you join a notch and service effort. Good runs that option service will usually have smaller profit or losses. Why is that? Simply because market cycle from movements of trending to movements of consolidation. So if you think an option service seems good to really test that option service out for a period of at least three months.

So how many services are you going to have to try? Are there really any good ones out there?

I say there are. And I found several but I'm not going to tell you what they are. You'll have to find for yourself. The services really helped me come with good trading ideas and help me avoid getting mediocre ones. And some of these trading services run a system that is consistent so I'll just plug in the trades with a small position and let it run.

So is it worth it? You tell me. If you find a service that will help you turn $5000 in $200,000 I say it's worth it. The best part about the process of finding and testing new option trading signal services is that I learn more and more how to trade more professionally. I get more of a feel of what works and what doesn't through these options trading signal services and possibly one day I will crack my own code to successfully trading options in a big way.