Special Updated FAQ: June 7, 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) at that price. When the option trades there, your option will be immediately sold without any further input. Try to leave some on as your mother ticket. if you buy 4 contracts, leave 1 on for further gains, 8 contracts leave 2 on, 12 contracts, leave 3 on, etc. Keep tabs on those remaining contracts daily, with a mental stop at break-even. Once they reach triple digits move that mental stop way, way up.
FAQ: What should I do if I can't buy the option at the price in the trade alert?
A: Buy it anyway. The price in the alert is simply the price at which the option is trading as the alert gets created. I also have been known to inadvertently put down the wrong price. It is the strike and expiration described in the alert that matters, not the "around price" in parenthesis.
FAQ: Is it still advised to "take all trades?"
A: This leads us into the subject matter of the next question, but let's address it here first. It is not necessary to take every trade. Every trade that goes out has the same probability of success and any other. You can take them all, or any subset, but certainly not less than 3, preferably not less than 5.
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. Right now, counting all of the June and July expiration trades, every one has reached one target or the other. If you closed out your position completely on each one you have no open positions going into Monday. Two solutions:
(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 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 our next trade. These trade alerts are triggered and sent out at the market open each day (one trade per day), which we send out to our subscribers in real time.
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, i.e, Standard/Premium/PRO. We have an App own development that will be released for Android and IOS as soon as it is ready.
Q3: What do I need in order to get started?
A: An email address, a brokerage account (optimal if options trades are enabled), and funds to trade.
Q4: Do I need a minimum amount of funds in order to trade the system?
A: Not necessarily, though it is recommended to consider budgeting for several open trades at a time.
Q5: How do the trades work?
A: We present the buy (with suggested entry price) and recommend pre-setting your exit based on your preferences. As a general guideline we recommend an initial 35% profit-taking exit on 3/4 of you portion, leaving 1/4 on for further gains. Stops are recommend to be fairly loose, with no more than 65-75% stop loss. Both profits-taking and stop-losses are flexible enough so you can substitute your own numbers. Here is an example using our recommended parameters:
The System identified a new trade (CRUS Sell Signal and the September $35 put). To execute this trade, a subscriber would do the following:
Order #1: Buy to Open CRUS Sep $35 Put @ $1.45, (or at the market).
When the above order is filled (should take 30 seconds or less) place the following:
Q6: What about stops for limiting losses?
A: We recommend a percentage loss on the option of between 65-75%. Since everyone has a different risk:reward profile as an option trader, we leave to the individual trader where to set their personal stop-loss.
Q7: How do I access the subscriber content?
A: When you purchase a subscription, your email address is automatically added to our system. This email address will receive the trade alerts each day. For access to the alerts via our website, you will need to create a login using the same email address you subscribed with. To access your subscriber billing portal and manage your account, visit this page.
Q8: 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.
Q9: How long has this system been around?
A: AllanTrends/Blue Line Trading began officially as a subscription service in 2010, but our head writer and chief strategist, Allan Harris, has been trading for a living for 4 decades! We have gone through several iterations of our system, always to improve profitability and ensure the best possible experience for our subscribers. We are absolutely positive this is the best system yet!
Q10: Is there anything else I need to know?
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.
Nothing published by BLTS should be considered personalized investment advice. Although the BLTS team may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by the BLTS team to you should be deemed as personalized investment advice.