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How We Trade Options Reviews

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 8 minute read

Investing in the stock market through options trading has become increasingly common in recent years. Many people, especially those who are not yet seasoned Wall Street veterans, are deterred from entering the options market because of its reputation for being difficult to understand.

However, the brothers who established the Motley Fool, Tom and David Gardner, would be pleased to show you that trading options don’t have to be a complicated procedure.

The company provides the Motley Fool Options service to help people of all experience levels with trading options. Alerts, training, and exclusive member benefits are just some of the ways this service may help you profit as an options trader.

The Best Motley Fool Options: Key Features

In order to maximize your financial gain from trading options, the Motley Fool Options service provides a plethora of tools. 

A few of the platform’s most alluring attributes are:

Quality Warnings

It would take you longer than five minutes to mention all of the available online alternative alert services nowadays. Each will try to convince you that their alerts are the best.

The Fool, like many other services, boasts that it is superior to the competition. However, unlike many others, it can back up its claim with a proven track record that dates back to the start of the service.

Over the course of more than two decades, the company’s alerts have an impressive 84% win record, generating returns well above the market average.

In addition, the notifications you’ll receive are unparalleled in the digital world. Most warnings from other providers will tell you what you should do, but they won’t tell you the precise cost or how they arrived at that number. The Motley Fool is here to fill in the blanks.

If the Motley Fool Options service sends you an alert suggesting that you purchase calls, the accompanying email will detail the stock price at which you should try to buy calls, the rationale behind the suggestion, and the anticipated outcome of the trade.

The email will also include advice on how to lessen any harm. Having a win percentage of 84% is excellent, but that still leaves 16% of failures. You should try to keep the damage from those events to a minimum. Your portfolio will never be overexposed to risk if you follow the instructions provided in the notifications you get.

The basic format of each notification looks like this:

  • What Do You Think of This Warning? You’ll first see a message that specifies the kind of trader and minimum trading capital that should receive the warning.
  • Action. In the “Take Action” section, you’ll find specifics on the sort of trade, stock, and price that the Fool’s experts recommend.
  • Allocation. In this section, we will discuss how much capital you should commit to the transaction and the logic behind that allocation.
  • Price Point Recommendations. Following these guidelines will help you negotiate a fair price for your deal. It is recommended that you wait until the alert’s specified pricing is available, or as close as possible to it.

After receiving an alert, you can read a detailed article explaining the author’s thought process, the strategy behind the alert, the potential rewards, the potential losses, and other information.

An Extended Goal

The Motley Fool has never been about quick profits, and that hasn’t changed with the launch of its options service. It has used the same options methods for years, maintaining consistent pricing and pattern.

This is crucial because, despite day trading’s attraction, short-term deals have a significantly larger risk of failure than long-term ones.

When you explore the Options dashboard, you will find that the team has been keeping an eye on certain of the stocks in the alerts since the service was launched, issuing alerts related to the purchase and sale of options in those stocks ever since the service was established.

Choices in Education for Novices and Experts

Whatever your investment strategy, education is essential. After all, the more information you have, the more probable it is that you will benefit from the stock market. The education platform provided by the Options service is unmatched and is referred to as “Options U.”

Furthermore, it’s not just for novices. Three-course sections totaling 36 lessons make up the training series. There is something for you to learn in these courses, regardless of where you are in your learning as an options trader.

There are three-course sections:

Essentials under Choice U

If you’re new to options trading, this is the place to learn the ropes. The fundamentals of options trading are covered in this course’s nine lessons. 

You will learn the basics of options trading, including what they are, how to acquire approval from your broker to trade them, how to purchase and sell options, and more by the time you finish this course. The course concludes with a video lecture that serves as a comprehensive introduction to options trading.

Strategy Choice U

All choice traders, whether novices or seasoned pros, should begin with Choices U: Strategies. There are 13 courses in this course that will teach you all you need to know to be a successful options trader.

Eleven lessons are supplied in text format, covering topics including call and put purchasing, covered call writing, and put purchasing as a hedge. Two of the sessions are video tutorials that will teach you everything you need to know about covered calls and written puts.

Choice U: Masters

When you’ve mastered the basics in the Strategies course, it’s time to move on to the more advanced material in Choices U: Masters. There are 14 courses in this course, and they cover some of the most sophisticated and fruitful binary options tactics.

When you’re done with Choices U: Masters, you’ll have a firm grasp of all the ins and outs of a wide variety of option strategies, including straddles, strangles, spreads, diagonal trades, collars, and more.

Always be prepared.

It is crucial to have and stick to a plan whenever you trade, regardless of whether you are dealing with options, stocks, currencies, cryptocurrency, or any other asset. Professionals at the Motley Fool share this sentiment, and they share their strategy with members every month in a piece titled “Always Have a Plan.”

Among the events that will likely occur in the next month that are detailed in Always Have a Plan are:

  • Expired Terms That Will Soon Expire. Before revealing the service’s predictions for the future, the post first details the upcoming option expirations, current trades, and experts’ predictions.
  • Dividends will be Paid Soon. The post then details the dividends you may anticipate receiving in the next month if you heed the warnings sent by the service.
  • Consider the Future. In this section, we’ll give you a quick rundown of what to anticipate in the coming month. If the author knows that a lot of open options will be expiring in the coming month, for instance, they may advise you to pay closer attention to notifications than normal.
  • Assimilating New Information Once a Month. Learning objectives for the month round out the piece. In most cases, the alerts and trade types being used will have some relation to these targets.

Membership – Backstage

When all is said and done, the Options service is a part of the Fool’s premium platform for experienced investors called Backstage. 

The service’s inclusion in the Backstage gives you access to additional benefits, such as:

  • Suggestions to Supplement the Previous Set. Additional stock suggestions describing the finest options to consider will be sent to you twice a month.
  • There are massive rankings done every three months. Possibilities in the mega-cap space are monitored by this service. The largest of the large-cap stocks are referred to by the Fool as mega-cap equities.
  • Live broadcast, with special access to the rehearsal space. The podcast-like Backstage exclusive webcast provides in-depth interviews and insightful comments from industry insiders.
  • Library. You’ll be able to peruse a wealth of media covering contemporary investment strategies.

Options from Motley Fool Have Some Advantages

Getting started with Motley Fool Options is a smart move for a number of reasons. 

Here are a few of the service’s main advantages:

  • Accurate and Dependable Warnings. While there is some uncertainty as to the accuracy of alert services in general, the Motley Fool alleviates this worry. Because of the reliability of its notifications and Wall Street media coverage, the firm has become a household name.
  • Education. Many online resources claim to teach you the ins and outs of options trading, but in our experience, they are either too difficult to follow or fail to cover all the bases. When designing Options U, the Motley Fool struck gold by providing courses that are both accessible and comprehensive in their coverage of everything you need to know to become a great options trader.
  • Consider the Long Term. We cannot overemphasize the importance of this: Almost all alert services cater to day traders, who take on a disproportionate amount of extra danger. However, the Motley Fool advises its readers to wait for the right time to invest in a trend rather than jumping on the bandwagon of FOMO (FOMO). You’ll never have to worry about opening and closing trades on the same day, and nobody will ever try to convince you to make a trade they know you think is unsafe just because everyone else is doing it. The suggestions are comprehensive and planned with the future in mind.
  • Backstage. In conclusion, the backstage pass is a great bonus. The subscription fee is more than justified by the access to premium commentary, interviews, and information.

Motley Fool’s Options Have Their Disadvantages

Although we have presented a positive picture, you should also be aware of the disadvantages of the service before committing to it. 

There are a number of major drawbacks to think about, the most important of which are:

  • There will not be a chat area. One of the best features of these kinds of programs is the ability to talk to other people who share your interest in trading and investing. Unfortunately, Options does not offer a chat feature of any kind.
  • There will be no refunds. In the event that you are unhappy with the Options service, The Motley Fool does not offer refunds. But if that turns out to be the case, the fee you paid for Options can be applied to any of the other services provided by the Fool.

The Performance of Motley Fool Options

A couple of the best options alert systems and tools are Motley Fool Options and OptionSonar. 

Here’s a look at the differences and similarities between the two:

Motley Fool OptionsOptionSonar
Alert TriggersBased on in-depth research by the pros at Motley Fool. Based on options trading volume. 
EducationExtensive education platform with lessons for beginner, intermediate, and expert traders. None. OptionSonar points users to Option Strategies Insider for education. 
PriceNormally $999 per year (promotional discounts available).Options scanning services start at $35 per month. Alerts service is $109 per month or $948 per year. 

Bottom Line

For good reason, The Motley Fool is regarded as one of Wall Street’s most reliable names in the business. We find that the corporation is correct more often than not. 

Choices by Motley Fool is a great resource for anyone thinking about entering the choices available trading market or who is already involved in the market but wants to improve their skills.

In the event that you are dissatisfied with the Options services offered by Motley Fool, as previously noted, you will not be eligible for a refund but may use the subscription fee toward another service.

Fortunately, the Motley Fool provides a wide variety of premium services, with Stock Advisor, Rule Breakers, and Everlasting Stocks among the best possibilities. You may see a comprehensive catalog of Motley Fool’s paid services there.

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