Special Updated FAQ: November 12, 2019
FAQ: Some options go up 35-40% so fast that by the time I can sell them they've already fallen back down. How do I get out where I want to without having to watch my options all day?
A: Once you have purchased the option in your account, take that the purchase price and multiply it by 1.35 (+35%) or 1.40 (+40%), or whatever your initial profit-taking target is, then place a GTC sell order (good-until-canceled) with a limit at that price.
FAQ: What should I do if I can't buy the option at the price in the trade alert?
A: The price in the alert is simply the price at which the option is trading as the alert gets created. It is the strike and expiration described in the alert that matters, not the "around price" in parenthesis.
FAQ: Doesn't taking quick profits get you out of your trades too soon, sometimes leaving few if any positions open? Even though the option tables show a lot of trades, most all of them have hit their targets.
A: There are new trades coming every week and I really am preferring quality over quantity. Nonetheless, here are couple ideas to maximize exposure:
(1) Always leave some options open after initial profit-taking, holding for further gains. Use a break-even (on initial entry) stop and move that stop up as the option goes up.
(2) Treat "Repeat" signals as entirely new stand-alone new signals, with a full monetary allocation that you would accord any new signal. The chart below is of a new addition to the PRO basket, Micron Technology (MU). It had 3 sells all within the month of May, about two weeks apart. The first two signals would have been big winners. Depending on the option expiration (we were not trading MU at the time) these signals could have overlapped. What to do? If you have extra cash to put to work take the repeat signals as new signals, or if the original option is on the verge of expiring, the new signal is an opportunity to rollover the position into the next expiration.
General Overview FAQ:
Q1: How does the system work?
A: We use our trading platform (trend-following) to identify the larger trend and then monitor the smaller counter-trend retracements for reversals back into the major trend, a "buy the dips" mentality...except waiting to be sure the dip is over before jumping in.
Q2: What should I expect as a subscriber?
A: Expect trade Alerts as new trades are triggered, both via email and posted on the website under your level of service, either Premium (Intermediate Term) or PRO (Short-Term).
Q3: Do I need a minimum amount of funds in order to trade the system?
A: Minimum $2K should be enough to diversify into 2-3 trades, especially if you are taking quick profits in the 35-50% range.
Q4: What is the difference between Blue Line Premium Service and Blue Line PRO?
The Blue Line Premium Service uses 180 minute price bars to generate a more intermediate term trade, 3-5 weeks. The Blue Line PRO Service trades off of hourly price bars and generate trades lasting from 3-5 days.
Q5: Is there anything else I need to know?
Yes, we are here to help you make money in the stock and index options market. If you have questions send them in and we will try to get back to you as soon as possible. Your success is our success...and vice versa.
Options involve risk and are not suitable for all investors. All investors who deal with options should read and understand the publication "Characteristics and Risks of Standardized Options." A copy of this publication can be obtained by clicking on this link.
Blue Line Trading System, LLC (hereinafter "BLTS") does not promise, guarantee or imply verbally or in writing that anything taught through our newsletter, in any printed material, or displayed on our website will necessarily result in a profit. BLTS is the copyright owner of all text and graphics contained on this website. Copying, publishing or redistributing any material in any way without the written consent of BLTS is strictly prohibited.
The owners, publishers, and agents of BLTS are not liable for any losses or damages, monetary or other that may result from the application of information contained within this website and/or newsletter. Within this website, we publish materials that meet specific criteria representing characteristics associated with described trading strategies. Individual traders must do their own due diligence in analyzing featured options to determine if they represent a suitable opportunity. BLTS. and any of their agents, affiliates, representatives, employees, principals, business associates or affiliates, partners or independent contractors are not responsible for any losses or profits that may result from the application of information contained within this website and/or newsletter. Past performance is not indicative of future results. Option trading involves substantial risk. You can lose money trading options. The past results posted on this site are meant to give you a reasonable idea of what you could have made or lost trading by following the BLTS service but are in no way an exact reflection of what you would have made or lost. Therefore, you should not rely on our past trade results as a perfect replication of what your returns or losses would have been by following our service. There are inherent risks involved in the stock market and these risks should be considered prior to any decision. The representatives of BLTS may or may not hold a position in any stocks listed at the time of publication and reserve the right to buy or sell any security, option, future or derivative product without notification.
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