Please note this updated review is a work in progress since I am still evaluating the service with Jud Pyle. This review is for Options Alerts with Jud Pyle. The older review with Steven Smith in charge of Cramer's Options Alerts.
I just started the trial to the service and received an alert recently. Another review received today
Becoming a member allows you to view past releases of the service. I noticed that the trades are not what I prefer. Most of them are spreads and condors instead of straight out buys of puts or calls.
The alerts arrive by email with a link.
For example the alert I received was a call spread -- purchase a certain number of calls and at the same time sell the same number of calls for out of the money options that expire several months out. This spread mitigates risk. You have a cap on both the gain and loss on this trade and you know that the numbers are.
I like to track the immediate reaction, follow through, and profits or losses from the suggestions of these services. Apparently Cramer's Options Alerts has a larger subscriber base than before when it was run by Steven Smith.
There was an immediate spike in the volume of the two calls mentioned in the Options Alerts that came out. The volume held constant for the rest of the trading day as well. To be fair to Steven Smith, the options listed in the alerts where for a heavily traded stock -- in excess of half a billion shares trade daily and the open interest for each strike was over 100,000 contracts. The volume in those calls was greater than any other day except for four in the prior 30 days.
I like that there are more people involved in this service which means that getting out of the trade is presumably easier since you have more people involved.
The alert is simpe and to the point combined with his justification for the trade. I like this.
It also has something for the option nerds in the audience. There is a break down of the greeks -- gamma, theta, delta, vega and how they are important for the trade.
The were only two negatives so far:
1. I did not like that the email alert does not include the recommendation. You must click the link to read it. When you click it, you must sign into the service which is a tad odd. After you sign in, then you can read the suggestion. The email does give you a head's up on the option's underlying stock, but that's it.
I suppose the way around this is to be signed into thestreet.com's service ahead of time but you would have to do this on a daily basis. This was something I didn't care for.
2. Spreads, condors, and the like are not personal favorites of mine and this is what I see in the alerts that have been sent out. You might enjoy these flavors. I haven't seen any "buy to open" alerts.
Jud Pyle's closes every announcement with "Now, let's get out there and make some money."
He must've taken Latin in high school because instead of saying "all other things being equal" he sometimes writes "ceteris paribus" which is Latin for "with other things the same". I don't know anyone that says ceteris paribus, although it could just be me since I don't get out all that often.
Jud Pyle keeping it real! (more on Cramer's Option Alerts with Jud Pyle)