Optionmonster Inside Options Newsletter Service Reviewed

 

 

Review of Optionmonster's Inside Options Pro & Optionmonster's Open Order

Optionmonster's Inside Options, formerly called Option Trader Pro, offers five option trade ideas a week.  It is half the price of the top shelf Inside Options Pro newsletter service. You also receive a complimentary subscription to their Open Order service.  I rarely read that newsletter even though it is free.

I find Inside Options to be as effective and there isn't the extra noise found with the interactive blog with the Inside Options Pro.  You don't receive as many trade ideas, but I found that my style and work schedule did not need as many.

The thing with any of these newsletters is you have to make sure that the authors' style and number of trade ideas fit your needs.  Of course the top priority is to choose a newsletter that delivers strong ideas and more winners than losers.

There are a couple of other writers with the service that deliver the trade ideas besides Jon and Pete Najarian.  You can see who wrote the alert because at the bottom it will read "By:" and then the name of the alert's author. I have found that Pete Najarian rarely shows up with trade ideas on this service, but when he does the ideas turn out to be big winners.

Not too long ago, Pete wrote about an energy company and suggested on the Tuesday of Options expiration week to buy the front month call options at the next strike up that were out of the money.  I liked the idea and the unusual option paper flow cited, but I wanted to play it safe and did so by going out one month and purchased the in the money options instead.  Within a couple of hours I had a 20% gain and closed out the entire position before market close.

I was content with the return.  I also noticed that a closing suggestion on the option trade was not offered that day.  As I have written elsewhere, you need to decide when you are ready to sell and not necessarily wait for the newsletter to give you the signal.

Had I waited until the next morning, my safe buy would have paid off even more and those that bought the suggested options that were expiring in two more days were rewarded with a return of over 200%.  When the option trade alert was issued, the options were offered at 22 and less than 24 hours later they were at 66 when the sell alert was issued by Optionmonster.  Those same calls got as high as 72 after the alert.  The energy company saw it's stock price jump when the President spoke favorably about it that Wednesday morning.

My experience has been that option trade alerts written by Pete Najarian have a higher win percentage and a higher percentage gain than the other writers. The thing is he doesn't seem to issue that many trade alerts.

I have also noticed that this service stays on top of trades by issuing closing notices and they don't tend to wait too long.  They are more likely to ride trades that are purchased for 50 all the way out.

From checking over Time & Sales Data, Inside Options or what was called Option Trader Pro is a well subscribed service.  After an option trade alert is issued, you can see the volume spike in the options.  I usually go with the outlined trade idea, but if it is the front month option and I want a little more time I'll go out one month.  Sometimes if I don't see the alert early enough and the cited option seems to be a bit pricey, I go in and will buy the more expensive contract that is in the money. For example if the suggested option is the September 70 calls and the stock is at $68.00.  I might grab the September $67.50 calls instead.  It will depend though, on if the bid ask spread is not too wide.

For the money, this is one of the best option newsletters out there. I don't use any of the ideas from the Open Order service so I don't place any added value to that option service that is complimentary with a subscription.

   Our take on the Changewave Option Trader service which is now called Big Money Options  

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