Keene on the Market Newsletter Review update

 

Big Money Options regular service review    Big Money Options Live history

(updated review page 1)      (updated review prior page 2)          (original review)

Second example Intuitive Surgical (ISRG).  The very next day February 27 late in the day, Andrew famously told the room "I probably won't do another trade today." A couple of subscribers typed in the chat what most everyone else was thinking -- that was a promising start to hopefully something really big like yesterday.  Not long after that he noted the unusual activity in ISRG March 475 calls that were $30 out of the money and paper paid $1.70.  Partly due to the success of the prior day's call, the trading room jumped on these for $1.85 and $1.95. Within a few minutes those same calls went for $2.60 to $2.89 and as the stock was going down by $1, the calls were still climbing in price which is not supposed to happen.  Several members in the room said they were selling them for $3.90-$4.00.  This took place within 15 minutes.  I was reading the chat log and saw one person complain that they "only" realized a 26% gain in 2 minutes. Many subscribers that held on for just a bit longer than a couple of minutes realized gains of over $2.00 per which is $200 per contract. 100% gainers in less than 15 minutes.

It was amazing to experience these two trades as they were unfolding.  Isn't it better to be a participant in trades of significance like these that seem to come around two or three times a year instead of hearing about it on CNBC, seeing it on Twitter, or reading about it? These two monster trades came on back to back days in Keene's option trading room!

It is important to note that neither of these two monster trades made it on the premium twitter feed because they were never option trade alerts.  He simply highlighted the activity in the room. My ears do perk up just a little now when I hear him say late in the afternoon, "I probably won't put on another trade today." My own Pavlov's dog experience.  

Not every trade is a winner.  One example is when Andrew Keene highlighted the DFS calls with entry at 50/55¢ and two days later they were  30¢ bid with 35¢ ask. I know several in the room took a loss on the trade, although it wasn't until a couple of weeks later that the trade started to pay off.

Keene is a disciplined trader and he already has exit points laid out for the positions he takes on. He has a tiered system for selling his options.  Usually it is at three points and sometimes five.  So if he entered the position at 50¢ he might have an order to sell 1/3 stake at 70¢, 90¢, and $1.05. If the trade isn't going as planned, he will adjust accordingly.  He does tell you what his exit points are and he defines each trade a confidence level. 

I have noticed that some subscribers complain about not being able to get in the trade at Andrew's prices.  It is my opinion that if you are trying to get in at or close to the same price then you need to use an options platform that makes it quick and easy to place a trade.  I noticed when I visited the Schwab site that it was very slow to place a trade, but very easy with Optionshouse and Fidelity.  With the latter two, you simply enter the ticker symbol and the option chain appears, you scroll to the month and strike, right click, and select Buy to Open for example, and enter the number of contracts and price, review and place. If you have a quote box open in Fidelty Active Trader Pro, you can type in the ticker symbol which is easy and right click so that Buy to Open appears.

I remember one subscriber in particular that complained 4 minutes after the alert about not being able to place the trade quick enough on a penny wide spread option and he would have to pay 2 cents more than the alert price explaining that the trade got away from him.  I don't think this is a substantial chase and I was under the impression he needs to get a better platform or figure how to use the system he has because I was able to get in at the same alert price and I timed with a stopwatch and following the sales how long it took for the price to spike it was still at the same price three  minutes after the alert went out. I am sure you will agree it shouldn't take three minutes to place a trade.

I feel that Andrew Keene's Live trading room for unusual options activity and earnings is a strong service and I would recommend it to others for the reasons outlined above: you know his entry and exit points on every trade, you know how many contracts he is buying, you are using a service with a long track record of success with options trading, and it is a great value. If you are looking for several trade ideas per day, then this is certainly a service for you.  During the snapshot in time for this review, the service was very strong in terms of profitable option trade ideas. It is important to keep in mind that it isn't always like this. No service has a strong run like that at all times.

As promised, here is how I rank the three service levels of Keene on the Market. The Live Trading Room is the best.  Even if you aren't in the room every day, it still provides a better insight into what is going on during the times that you are in the room.  There have been numerous times when he has covered great ideas in the room like EZCH and ISRG which were timely that never make it to the premium twitter feed and most certainly not the email idea.

If you are rarely at your desk where you could listen to the trading room, then Andrew Keene's premium twitter service with email is probably the service for you.  You might not care for the twice a day service though with the first email being sent sometime during the 11 o'clock hour (central) and the second email which includes the trades found in the first email being sent after the market close.  The second email is sent out between 3:30 and 5:30 pm.This service is much better than the silver package.  I would be more of a fan of the email service if they sent the alerts out simultaneously as they were announced in the room, but that is what the premium twitter part of this package is for.  In the subject line, the emails are titled Entries and Exits with that day's date. Trading room subscribers receive the premium twitter feed and emails with their subscription.

If you are looking for the least expensive way to get access to Andrew Keene's option trade ideas then the silver package is for you.  It is important to note that the  live trading room and premium twitter feed / email subscribers also receive this information.  I am a believer in trade ideas as they happen so that is why I am not too keen on the silver package.