Welcome to our options trading world!
We at ZZ Capital Management, LLC are very happy that you are interested in trading options with us. We believe that this can bring a lot of education to all of us if we share our ideas together.
When I personally started trading options it was hard to find affordable advice or a trader who would be willing to help or let me mirror his or her trades. I had to learn the hard way. I had to spend a lot of money for courses, books, all sorts of training, and learn by trading. I believe that learning by doing some thing is the best way to learn. You can study all theory, but without a real work in the field, it won’t help you.
Later I was able to find a few traders willing to help for free, but I also found a lot of traders claiming that they did not need to sell their newsletter or stock picks, because they made money trading and once I applied for their “free” service, it was a pitch for “an incredibly discounted service just for $497.00 a month, or a course for $997.00, or $1,997.00 while a regular price was only $2,997.00!” What a bargain, right?
What if I tell you that I can provide all this for free? Why would I do it?
Well, first of all, I trade options and stocks and make money by doing so (I also lose money). And I do not have a problem sharing my trades for free.
Second, I would like to interact with other traders and learn from that too. I started my blog as a track record of my trades. Sharing trades online with my fellow readers/traders put more pressure on rationalizing and reasoning each trade and plan it better. It would also bring more discipline and patience to my trading (and I can already see results to this after about a year of publishing my trades).
Third, this will help me and my company to establish a trade track record for the future, and more readers/clients seeking help would come to our company for help. That would bring more revenue from advertising.
Fourth, our ultimate goal is to start a hedge fund. If our trading shows and proves to be successful we will have a great base of loyal investors/traders and they may decide to invest through our hedge fund rather than on their own.
Fifth, teaching other traders, or discussing published trades will help me personally to learn trading options. The best way to learn is by doing it and by teaching others.
And that would definitely be a win win situation.
And last, I like to share my success and teach others who are willing to listen and learn. I consider it a payback to all those who helped me in the past on my way up in the options world.
What You Can Expect?
You will receive a newsletter anytime we go to open a new trade with a short description of the trade and explanation of how to open that trade. We expect that you already have a basic knowledge about options and how to enter a trade with your broker, so we will use the following format:
STO 1 AAPL Nov14 97 put or
BTC 1 AAPL Nov14 97 put
@ 00.00 DAY (credit)
The Nov14 refers to November 2014 standard expiration. Sometimes you will see the following abbreviation:
The numbers right after the month refer to weekly options and the week of the month. So, Nov1 14 refers to the first week of November 2014 Friday expiration.
Note, check this nomenclature with your broker as they may have a different description of weekly options.
The first abbreviation in the sample order above refers to the following:
STO = sell to open (trade)
STC = sell to close (trade)
BTO = buy to open (trade)
BTC = buy to close (trade)
You will also receive a newsletter anytime we will be doing any trade adjustment, closing a trade, or information about a trade fill.
Money and Trades Management
Here is our advice on money management. We all will be trading different accounts and different sizes of contracts. Therefore all trades listed in the newsletter will be listed as one (1) contract. It will be up to you to decide how many contracts you want to open.
We recommend you to trade no more than 30% – 50% of all your cash in your account. I personally trade only 30% of available cash. Never over trade your account no matter how tempting it may be. Our account is still relatively small, so the number of trades we put out will suit our account and not yours. If your account is larger than ours, you may want to increase number of contracts you want to trade. On the other hand, if your account is smaller, you may want to skip some trades in order to maintain 30% – 50% utilization.
Why we recommend trading only 30% – 50% of your cash?
The reason is simple. Not all trades will go out smoothly and as planned. When we sell options, we collect premiums. We want to defend those premiums at all cost. We will do whatever it takes not to give that premium back. We will close with a loss only if we exhaust all defensive measures to defend the trade. To defend our positions we will need free cash to be able to repair trades which go against us and to make sure that the trade ends up a winning trade. If you overextend your account, you will not be able to do it and you will be forced to close the trade with a loss.
At this time, you may expect 5 – 10 trades per month. Again, we will put out an alert when it’s OK in our own account. If we are fully invested we may not be trading until some trades close or expire which would free up our margin for further trading.
What Do We Trade?
We primarily trade put and call spreads (bull put spread, bear call spread, Iron Condor) for weekly income. Sometimes we may use single short (naked) puts and calls. Therefore your trading account must be approved for tier 3 (advanced) margin trading. If you have more than $125k account, we recommend applying for “portfolio margin” account as you get a lot better margin deal with your broker.
We want to trade always CREDIT spreads but occationally we may put out a debit spread if the trade looks promising.
Subscribe or not?
You can join the group if you want. It is free with no obligations. And if later you will not like this service, you can always unsubscribe. If you are not sure whether this service is for you, you can just watch those trades, follow them, or even start opening them in a paper money account to see first how that works. Once you get confident that this is OK with you, you may start trading live trades with real money.
|I retired the newsletter service and no longer send emails with the trades.
However, I created a Facebook Group where I am posting all my trades instead of sending emails. The group posting is faster and helps me to maintain the trades live and online basically immediatelly. Thus it is fast and very convenient.
|The group is a closed group and limited to 100 members only. New members can be added only if any of the old member leaves the group.|
|You can join the group here|
And if you think I am a bogus, then simply leave the group.
ZZ Capital Management, LLC is neither a registered Investment Adviser nor a Broker/Dealer. The information provided in this newsletter is intended as educational material to assist you in planning your own trades. The information in this newsletter should not be construed as an investment recommendation or endorsement. You alone will need to evaluate the merits and risks associated with the educational material included here. Trading stocks and options carries a high level of risk and may not be suitable for all investors. Before deciding to invest, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could lose some or all of your initial investment. In exchange for using the Newsletter, you agree not to hold ZZ Capital Management, LLC liable for any possible claim for damages arising from or relating to any decisions you make based on the information contained herein. You agree to defend, indemnify and hold ZZ Capital Management, LLC harmless from and against any claims, actions or demands, liabilities and settlements. This indemnification also covers ZZ Capital Management LLC’s officers, directors, employees, agents, and suppliers. Your indemnification includes, without limitation, the costs of reasonable legal and accounting fees, resulting from, or alleged to result from, your violation of the Terms and Conditions associated with using this service.
All trade ideas, files, images and materials above and linked to above are Copyright 2014 ZZ Capital Management,LLC. Unauthorized use and duplication, including posting content/trade ideas to forums, blogs, etc., is strictly prohibited. All rights reserved.