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Risk Averse Planning
     While Adapting To Market Changes...
 
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"Doing the math in my head, I realized that was 60% per year and considering my recent experience thought that was a screaming hot return."

Each month Charlie would look for stocks that had found support in the market or that had begun to trend higher. Once he had several candidates, he looked at the call premium and calculated his return for each one.

Charlie explained that if the stock traded higher he would be assigned, but that he was okay with that since he would have made his 5% or more on the trade.

"But what if the stock doesn't trade higher?" I asked.

Charlie just shrugged and with a casual gesture said he would keep selling his calls each month, just like a cash machine...

After that conference was over, I was on the telephone to my broker asking about options and what I needed to do to trade them. The brokerage sent over a small pile of forms I had to complete and send back.

Looking at that pile of forms, which seemed like just one more disclaimer after another, it occurred to me that I might want to learn a little more about options before jumping in...

Enter The Hotel Seminar...

My first step after spending the day with Charlie, was to buy a small handful of books about options.

I read up on covered calls and then tried Charlie's cash machine approach. What I found was that covered calls don't work so well in a bear market.

It didn't matter, though. I had learned enough to know that options were the solution I was looking for and it was simply a matter of educating myself properly.

The next step was to "invest" thousands of dollars in a weekend seminar that promised to reveal all I needed to know to trade options. For two days I sat in a hotel ballroom and learned the basics about options...

"What I found was that covered calls don't work so well in a bear market."

...and the company's other seminar offerings. I also learned that if I really want to learn how to trade options that I would need to spend about $20,000 on additional seminars and related products.

I was fascinated, though. I also remained convinced that options held tremendous opportunity for me to control market risks, create profit opportunities, and resurrect my investment and trading accounts...

As it turns out, I was right...

Getting Serious And Trading Like A Business

After years of reading about options, discussing options, back-testing, experimenting, and learning as much as I could possibly learn about options I began to formulate the theories and philosophies that would finally allow me to realize my goal.

What I did was step away from the "one trick options trading pony" mentality. I had realized that no one options strategy was fool proof and that this simple fact was not going to change no matter how much I tortured any given strategy with adjustments and modifications.

Iron condors are great when the market is range bound, but you'll suffer when it breaks out from its range.

Calendar spreads and diagonals will deal you losses when implied volatility falls...and this is particularly true if you're using LEAPS!

Covered calls work well in flat and up-trending markets...but you can get hammered when the underlying stock sells off.

Married puts seem so safe, but they're no safer than buying a long call and they need an upward market move if you hope to make money...

"What I did was step away from the "one trick option trading pony" mentality. I had realized that no one option strategy was fool proof and that this simple fact was not going to change no matter how much you tortured any given strategy with adjustments and modifications."

Unfortunately, most of the subscription trading services only focus on ONE strategy! Many try to convince you that their system is your key to obscene wealth, but come on...we both know better.

Appreciating that each options strategy has its own inherent strengths and weaknesses, it becomes apparent that no one strategy holds the answer...

If there is no ONE strategy, then what's the answer?

Before answering that question, let's ask another. Who's actually making money trading options?

The answer is the obvious one - professional traders.

"What if you learned how to open multiple options positions, each complimenting the rest of your portfolio, to create exactly the risk profile you want?

That's how the professionals do it. Why not you?"

Well, if professional traders make money trading options perhaps it would make sense for us to pay attention to what they do and then try to adopt similar approaches in our own accounts. Makes sense, right?

Now, the answer to the first question is that if there is no ONE strategy that will unlock the vault, then the answer lies in using a combination of several strategies.

If you doubt that conclusion, just watch a professional options trader over the course of the year. They will adopt the strategy that best suits the market's condition.

If the idea of trading multiple strategies has you unnerved...don't be.

There Are ONLY Two Market Certainties. So, We Want To Make Sure Our Trading Takes Advantage Of Them

I had also learned that the market was unpredictable. Technical analysis has its uses, but it is NOT a crystal ball and no one is going to foretell market sell-offs or declines reliably enough for us to make money...at least not on a recurring basis.

What is certain is that market prices will fluctuate from one day to the next and that stock options will expire.

Playing on this certainty, I focused the core of the portfolio on "theta positive" positions. This allowed my portfolio to appreciate in value, without regard for market direction, through the simple passage of time while market prices fluctuated up, or down, within a wide range.

"...if professional traders make money trading options perhaps it would make sense for us to pay attention to what they do and then try to adopt similar approaches in our own accounts."

I also developed strategies and techniques to take advantage of directional price moves, hedge against market sell-offs, and to protect profits once earned....

All of the theories and skills I've referenced are not secret or proprietary in any sense. They are commonly used by knowledgeable options traders, both professionals working with institutional money, as well as sophisticated retail traders.

The key is to first learn the basics about options and how they work, then refine that knowledge into a comprehensive trading approach...

I did it after several years and with the benefit of having access to some very knowledgeable people in the option trading world.

...then something happened that BLEW MY MIND!

A few months ago I became aware of another retail trader, like me, and you!

He had learned the very same, or very similar, lessons that I had learned and had developed a trading methodology quite similar to my own.

Each month he was building a core portfolio of theta positive trades to create a large profit envelope. He then complimented the theta positive positions with short-term directional trades.

The short-term nature of the directional trades limited the negative effect of theta and hedged against significant changes in implied volatility. Those trades also helped offset the risk of a large market move.

What was particularly surprising was that he had produced numerous videos revealing exactly what he did every month.

The videos were awesome...

"After watching the entire set of videos, I got in touch with this gentleman and bought a license to the entire video set because I knew I had to share them ..."

It was like walking over to your neighbor's house and listening while they explain how to program your VCR...simple and straight forward.

When he was done, you feel like you can go do it yourself!

I had to watch the full set of videos, which he was offering for sale. I paid a "pretty penny" to get a copy but it was well worth it. In fact, I learned a few things that I began incorporating into my own trading.

What really got me was how similar his approach to option trading was to my own. After watching the entire set of videos, I got in touch with this gentleman and bought a license to the entire video set because I knew I had to share them with the members of TheOptionClub.com.

"...I do happen to have some thoughts about things that were not contained in his videos. So, I intend to add to his materials with videos and publications of my own..."

Now, that license was not cheap and I may very well end up regretting parting with that cash. However, I felt is was important for me to do so that I could bring those instructional video materials to you.

That's not the end of the story, though. His trading methods are really good...

Mine are not too shabby either and I do happen to have some thoughts about things that were not contained in his videos. So, I intend to add to his materials with videos and publications of my own...

...more about that later and how it will really benefit you!

It's Not Your Fault That You Lost Money Trading Options In The Past Because Most Options Education Does Not Really Prepare You To Trade

Remember those questions I asked at the beginning of this report?

That I can tell you is that if you answered "yes" to just one, or even all of those questions, it is because you have not made the transition from being educated about options to knowing how to really use them.

It's not your fault, though!

"Every trader must transition from theory to practical application..."

Years ago I went to college and got a business degree. I learned about accounting. I was taught various economic theories. I studied marketing, and finance, and production theory...

I learned a lot in college...but, I did not learn how to run a business.

After college I went to law school and took classes in contracts, criminal law, civil procedure, tax, and more...

When I graduated from law school, after another three years of study on top of what I spent in college, I had learned quite a bit, but did not know how to practice law...

Was I just learning disabled?

No. It's not that I was a defective student. It's that my education in college and law school were not designed to teach me how to run a business or to even practice law.

That combined seven years of my life wasn't wasted, though. What I received were valuable building blocks that I could put to use in my choice of career path.

The point I am driving at is the fact that college and law school gave me an academic and theoretical understanding of various concepts. The experience broadened my mind and exposed me to new ideas...

...it did not show me how to adapt those concepts to practical applications, however.

After college and law school I got a job and began encountering real world problems. I learned how to apply my theoretical knowledge by watching more experienced people.

I went through the same process with options, and so does everyone else who decides that they want to trade them.

Options traders are NOT born. They're made.

If you have learned about options and have an understanding as to how they work you are probably ready to learn how to apply that theory...

This is where a lot of new option traders encounter frustration. Their initial trades may fail to produce profits. They may achieve profitability for a period of time, just to see those profits disappear in a string of losses. Frustration!

Every trader must transition from theory to practical application...

Discovering How To Apply Options Theory To Real Markets

There are a few good training programs available that will show you how to take your knowledge about stock options and apply it in a methodical, business-like manner to create consistent and ongoing profits. Those programs can cost $6,000 or more, and can be a very solid investment in your options trading career.

Maybe you can't afford $6,000 right now for the privilege of personalized mentoring...

Well, there is now a lower cost alternative. Below I have embedded just a portion of one of the videos I mentioned earlier. It's less than 10 minutes long AND I shrunk the size down to fit on this web page...

...but if you hit the play button you should still begin to get a sense of what the video course is about.

I have the full length version of this video, which runs about 30-minutes, plus seven additional videos that I am making available at absolutely no cost. You can watch them for FREE...

  • VIDEO 1: Trading As A Business - Managing By The Numbers
  • VIDEO 2: Trading As A Business - Closing Profits
  • VIDEO 3: Trading As A Business - System Overview + The Key To Success
  • VIDEO 4: Trading As A Business - The 4 Risks Of This Business
  • VIDEO 5: Trading As A Business - Daily Review Sample
  • VIDEO 6: Trading As A Business - Expiration Week Review
  • VIDEO 7: Trading As A Business - Inside My Trading Account
  • VIDEO 8: Trading As A Business - Making Money Up Down Or Sideways

The link to the first video is live. If after watching that video you want to watch all eight of them, just provide your first name and e-mail in the form below.

You will receive an e-mail from us, asking that you confirm your request.

Once you click on the confirmation link, we will provide you with immediate access to videos 2 through 8.

The Trading Room Was Opened Up To A Small Group Of Traders. See What They Have To Say About It...

"This weekend I had a chance to go over all of the downloads. Very impressive amount of info for any trader and certainly valuable for both the experienced and newby types. I am really looking forward to getting started." P Seifert

"This is a great site and intend to follow up with your prior letter shortly. Thanks so much for your staying on top of so much involving the option club. There is so much more responsibility involved than meets the eye and your efforts are so appreciated. Take care." David

"So far I've only been able to get through 7 of the 11 modules of The Option Club Trading Room videos, but this is more than enough to know that this a very unique option trading course unlike anything I've seen anywhere else (and I have been trading stocks and options for 10+ years). I've started to paper trade using the methodology presented and am very excited about the potential for monthly income generation that I see. Additionally, I look forward to the forum discussions to help further fine-tune this trading methodology as well as acquire more knowledge about "trading as a business" in general. I would highly recommend the Trading Room as a place to further one's option trading education." Bob

"I think that the Trading Room is a great idea, they say that knowledge is power and that is only partially true, I think that it's through the sharing and dissemination of knowledge that we really grow. Being able to discuss trades and look at what other traders are thinking and doing is really powerful way to leverage everyones collective knowledge. Hopefully this will really takeoff and we all will benefit in substantial & profitable ways from participating.

The fact that you have David Valliere's course "Trading as a Business" is a real bonus. This will give a lot of traders a very interesting perspective on options trading and developing a disciplined strategy for wealth creation and a clear method for generating consistent income. The course is very rich and contains materials that you cannot even get from taking a $20,000 course!" Scott Thomas

What You Can Expect From Your Trading Room Subscription

Upon subscribing, you will have access to the core video course, which consists of 11 modules. Each of these modules contain several 'hands-on' videos walking you through the topics covered.

The videos let you see exactly what to do as you learn and you can watch them over and over again to strengthen your understanding.

As I mentioned above, I plan to expand upon these original course videos and add additional materials over time. Trading is an ever evolving practice, so we aren't going to let this curriculum grow stale.

There are topics that have already been identified and that will be addressed. Members subscribing to the service are also making requests for new materials, and while we can't guarantee that every request will be fulfilled, we are trying to accommodate as many as we reasonably can.

You will be able to download and watch these videos on your home computer. We will give you the username and password you need to access them anytime of the day or night - when it's convenient to your schedule. In addition, you will have access to these videos and any new materials we add at a later date, so long as you remain a subscriber!

The Modules in the core video course are:

MODULE 0: INTRODUCTION TO TRADING AS A BUSINESS & TRADING WITH CONFIDENCE

Description: This Module is designed to introduce you to a new way to trade stocks and options - as a business. Emphasis is on risk management and building a portfolio of trades that can be managed 'by the numbers'. Learning the craft, acquiring the skills required to be successful in this business.

MODULE 1-2-3: THE GREEKS - MANAGING BY THE NUMBERS

Description: The 'greeks' play a critical role in your trading business. We totally de-mystify them and tell you exactly what the greeks are and, in practical, easy to understand language demonstrate how they impact your business. The greeks are the numbers you need to understand to manage your portfolio profitably. In addition to the video, we INCLUDE the most comprehensive, yet easy to read 5 page CONFIDENTIAL REPORT on how to profit from "The Greeks" available in the world (yes, the world, and no, I'm not kidding).

MODULE 4 : TRADE SELECTION AND STRATEGY Description:

We've set the stage, now it's time to get on with the work at hand. This is where things get good and interesting. What positions do we take? How do we determine when and how? Do 'charts' matter? What is the big picture behind what we're doing.

MODULE 5: PORTFOLIO BUILDING Description:

Build a portfolio by putting on positions that work together. This is where many traders go wrong - they put on individual positions and do not understand how they affect your overall portfolio. Discover why diversifying across time frames, prices and differing strategies is a key to making money.

MODULE 6: USING THE TOS PLATFORM - THE TOOLS OF THE TRADE

Description: ThinkOrSwim (TOS), in my opinion is the best broker and has the best trading platform available. If you had to pay separately for the kind of analysis tools they give you as an account holder it would cost you many hundreds of dollars a month in fees - with TOS they're free. I take you inside the TOS platform and help you access the power you have at your finger tips. (There are other programs/software that you can use to analyze your trades, but TOS is free when you open an account.)

MODULE 7: PORTFOLIO MANAGEMENT BY THE GREEKS, ADJUSTMENTS, VIX and More... Description: Now that we have built our portfolio, how do we manage it by the numbers? We learned the greeks, now it's time to put them into action. The key to success is knowing how to look at the numbers and know, without a doubt, what they mean and what to do with them if anything.

MODULE 8: THE ART OF ADJUSTMENTS - THE SECRET KEY

Description: What happens when our numbers don't look good? This is where 99% of all traders get killed in the market... they have no clue what to do when a position goes against them and they lose money. It's too bad because most trades can be saved to make a profit! Imagine making one small change to your position and increasing your odds of making a profit by 80%! That's what adjusting can do for you! In Trading As A Business, we KNOW what to do. We trade with confidence. We know and understand that when a trade goes against us it's an OPPORTUNITY to add to our portfolio by adjusting. I call it Smart Allocation of Capital. The art of adjustments is the missing link in trading options and stocks that almost no one teaches.

MODULE 9 : CLOSING POSITIONS

Description: How to close positions for maximum profits. How and when to close positions. The risks of holding positions into expiration week. When an how to 'buy' short-term insurance to protect your profits and increase your wealth in expiration week. How to close positions and get free trades left over that, although small, have a chance of DOUBLING our profits.

MODULE 10 : THE BIG PICTURE - TECHNICAL ANALYSIS

Description: What kinds of technical analysis help us in our business? There are only a few key analysis tools that can help you determine the probabilities of market direction and I tell you exactly what those are in Part 1 as well as give you insights into why the market moves up and down in seemingly random fashion. I'll also give you a historical perspective on market movements going back to 1900 and give you a realistic plan of attack for determining future market direction based on factual evidence. In Part 2, I dive into short-term indicators that can sharpen your edge in the markets to better time your trades. Then I tell you about an indicator I stumbled on, that predicts short-term and opening market direction with an amazing degree of accuracy close to 95% of the time as well as how to determine intra-day movements and how to tell whether money is flowing into or out of stocks and what it means for intra-day price trends.

MODULE 11 : ADVANCED TECHNIQUES AND EXPLOSIVE WEALTH BUILDING STRATEGIES

Description: Not even one of these strategies requires any knowledge of 'technical analaysis' - it can help, but it's not required. These make money whether the market goes up or down. These are strategies you can manage based on 'the numbers'. One important thing I should mention: There are ways to make money that are NOT obvious. For example, when you buy a stock you understand that when it goes down you lose money and when it goes up you make money. Right? But did you know you there are ways to make money even when the stock goes down... and I'm not talking about a little money. When good stocks move down the strategy I describe in Strategy #1 makes more money than if they go up! How can that be? It's something I have been studying for years, and it works every time and cannot fail to work.

Explosive Strategy #1: Using this one method a $14,000 trade turned into a $75,000 profit in just 8 months. The most money at risk? Just $650. That was the total amount that was at risk when this position was initiated and NO more money was ever put into the position. Amazing profit/loss ratio. And it doesn't matter if the stock goes up or down but does require an longer time frame- 6 to 8 months is not uncommon for these trades to create the profits you can brag about. Want to make a killing in the market? It doesn't get any better than this.

Explosive Strategy #2: Another method which we'll call "Flipping Stocks" let's us buy stocks cheaper than others and if the market does not cooperate with our plan - we get paid lots of money for waiting until it does! This is for bigger players with more capital... but when you have $15k or more to put to work, these longer term trades generate explosive profits.

Explosive Strategy #3: This strategy has unlimited upside or downside potential and only $50 or so of risk? This strategy is extremely powerful and one of the biggest real 'secrets' that no one has ever discussed that I know of. Wait till you see the power of this strategy. You can make $1000's with a total risk of $50 or so... it's extremely powerful. Think there's no free-lunch on Wall Street? This isn't one either but it's as close as it gets to one! So think again. This is the perfect strategy for playing earnings reports, takeover news stocks and any stock you think will move big in any direction with little risk.

Explosive Strategy #4: If you want to be more active in stocks but hate the risk, you'll love this. Day trade without the risk normally associated with day trading. Can be setup to be an 'semi-automated' trading system. Very powerful and again another low risk, high earning strategy for more active participants (requires capital of $25,000 due to 'pattern day trading' regulations).

Explosive Strategy #5: If you liked the idea of the monthly income trades but was wondering how to 'turbo charge' them to make a fortune, then you will love THIS. Instead of $1000-$2000 a month you could start generating an income in the $5,000 to $40,000 a month range after learning this and with a lot less stress while trading as 'big' as you want. This last strategy is the 'icing' on the cake... the peak moment in all your hard study and will be worth 100 times what you paid for this course - maybe even more. Why didn't I reveal this before? Simple: You would not be able to use this strategy without a good foundation that was laid out in Module 0 to 10. Everything we have learned thus far has been leading up to Explosive Strategy #4 and this one.

The course will be delivered to you 100% online. You can download the videos directly to your computer in *.zip / *.wmv video format. This allows us to provide you with the highest quality and clearest videos for you to watch.

You may make one copy of these videos on a storage device (CD, DVD or external drive) but may not allow anyone else to view, copy or share them. They are for your use only.

What Else?

In addition you will receive access to approximately 30 "Daily Market Review and Commentary" videos.

These videos were shot on a day-to-day basis, giving you insight into how the principles taught in the course can be applied from one trading day to the next. In the Daily Market Review Videos you will see what not to do, discussions about assessing and responding to market conditions, the process of digging into your positions so you understand what your numbers mean, how to assess the 'health' of the market and trends, and more...

Basically you'll experience historical markets on a day-by-day basis by looking over a trader's shoulder as they 'think out loud' and strategise positions, and do some deep thinking about their portfolio and this business.

There is still more...

Regular live training sessions are held most weekends. Just log-in on your computer or dial in using your telephone. Those training sessions are recorded and added to the download archive.

Need even more help?

We have established a private, members-only discussion forum. This is where you can connect with others studying the same materials as you, ask questions, get answers, and discuss trading. You'll have access to the forum for as long as you're a member.

And remember...it can only get better because we will be adding more to the curriculum. As long as you remain a subscriber, you will have access to our latest materials and can take part in our ongoing options trading discussions.

Okay! What's The Bottom Line?

Hey! Times are tough. Maybe laying down $6,000 or more to spend time with a mentor or trading coach is not in this year's trading budget...

That's okay because it is still possible for you to learn sophisticated monthly income trading methods.

The goal here is to make this incredibly affordable so you can learn the concepts necessary to "trade like a business" without the stress of a large commitment.

Now, relax because I'm not going to ask for $6,000. I do want to make a point, however.

We have all seen other courses for $3,000, $5,000, $6,000, and more. There are just a few guys out there who are worth paying that kind of money to, and at some point you may be willing to sign up with them. As for the rest, I know that you will get much more from this course.

I want to put some solid materials in your hands at a very reasonable and affordable price. Some will call it down right cheap...

The cost of the course is an up-front fee of $997.00 $247.00 which gives you total access to the entire video training course, the historical daily review videos, the private discussion forum, and all of the other materials contained in our download section.

You will enjoy unfettered access for 45-days, after which you will be automatically billed just $75 $30 per month for as long as you choose to be a member. This allows us to update and keep our materials fresh, and provide on-going support through our discussion forum.

  • I have reduced the initial price to just $247.00 for a limited time, because 1.) I want you to have access to these materials as inexpensively as possible, and 2.) I need to recoup the expenses I have incurred. Once I have made my money back, the price will go up.
  • After 45 days you will be charged just $30.00 per month for continued access. If you can afford a cup of coffee in the morning, you can afford this, and it's going to be totally worth it. You will have access to new and updated materials, ongoing discussions, and more. This too is subject to a future price increase, so don't say you have not been warned.

Guaranty

1. Once you subscribe you may log into the Trading Room and review all that is available there. If you decide that the materials are not worth $247, you may request a full refund during the first 48 hours, Your money will be fully refunded and you will not be billed further.

2. After the initial 48 hours, you may cancel your membership at any time and not be billed further. Monthly fees will not be prorated.

The bottom line is that once you log into the Trading Room after having subscribed, take a look around. If it's not what you want, just send me an e-mail and let me know within 48 hours. I'll reverse all charges and we go on with our lives.

If you log in and feel pretty enthusiastic about what you see there (and I'm pretty confident you will) download the videos from the first module or two and dive in. Check into the private discussion forum and get acquainted with your fellow students.

After the initial 45 days, you will be charged a monthly fee, but at $75 $30 it's less than one morning cup of coffee at your local coffee house.

The TOC Trading Room is a private membership web site intended to help subscribers learn about options and how options can be used within an investment or trading portfolio. It is not a trade advisory service. All purchases are subject to our Terms of Service.

Trading Room

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