Blue Chip Options FAQ

Stock day trading: How much money do I need to trade?


For stock day trading picks, $5000.00 to $50,000 are typical trading bank budgets. Whatever amount you start with, Blue Options teaches "position sizing" to help you as a trader not make the common mistake of investing too much in a few trades.

What kind of returns can I expect with stock market day trading?


This all depends upon the risk you are willing to take, and how well you follow our system and rules. We recommend taking partial profits on stocks at 20% up, and that you trade both stocks and options in 1/3’s, selling 1/3 of your position as profit X, another 1/3 at profit Y, and holding the final third. Longer holds and certain circumstances can yield 50 to 100% returns.

What is the Blue Chip Options system for stock option day trading?


It's surprisingly simple -- as good stock day trading systems should be. We buy only puts and calls, typically for the current monthly only. Using charts, we define the "count" of the market and the current trend. Strict buy and sell guidelines (at what price to buy, sell and to stop loss) are the keys to our system.
 Blue Chip Options also makes extensive use of support and resistance lines, and the actual pivot points that floor traders use by the minute. Identifying a trend is not hard. Buying and selling profitably is the hard part and our stock day trading system is comprised of "rules of engagement."

How long will it take me to learn this stock day trading system?


Subscribers that "try" a stock day trading system and drop out quickly are called "churners."  As experienced stock traders ourselves, we know that it takes six months to effectively evaluate a day trading system, the accuracy of the signals and the method that is taught by any system.  Giving it less time is "churning."  This means trying something and expecting perfect results immediately. Eighty percent of stock invest day trading success is not the signal, but the trader. We teach you how to be the trader.  Remember, we do NOT provide daily option signals, but DO provide all the tools for you to define which index option to trade, and how.  We DO provide a regular stock portfolio, CORE and Speculative, and a  number of stock call or put options.

What can go wrong with this stock day trading system?

Option trading is risky and everything can go wrong. Without proper stock day trading training you can easily lose all of your "option bank" with any service, or on your own. You can even go in debt trying to trade options, if using "margin" incorrectly. Options are speculative trading, so without discipline and a system, everything can go wrong.


Do you offer a track record of your signals?


We believe "track records" are fictionalized, fabricated "best practices" that option services use to get subscribers. Most services list the "best price" they paid, and the highest price the option goes, and call it what they did. Realistically, most traders never buy or sell themselves at these "perfect" prices. That isn't just because it's hard to do, but also because fear, greed and a trader's own learning experience are a part of the trade. 

At Blue Chip Options, we offer many types of signals: pre-market, intra-day day trades, longer-term trades and we teach traders how to sometimes profit from the same signal several times in the same market day. Our 2006 YTD return was at 30% (for stocks) and running at 30% in 2007.

I'm worried you have too many signals. How will I know what to trade?


Unlike services that offer four or five trades a month for a set amount of money, we offer the trend of the day and “floor trader” pivot points and support/resistance for many index options. We also teach our subscribers how to read the market so they can choose which options are right for their money management goals. . We teach rules and method.
 The manual and articles in our password protected area many subscribers tell us is worthy of years of subscribing alone!

Will I need stock day trading software and a charting service to use Blue Chip Options?


You'll need a good inexpensive online broker. Trend analyzing is short term, and we teach the basic charting we use to "read the market." Online real-time charting can be inexpensive or often offered free by many brokerages and is only necessary for day trading options.  Subscribers receive our charting "read" of the day along with all the "what" and "hows." 

I'm interested in stock day trading just a few times each month. Is your service right for me?


Signal bias, stocks and bond recommendation and guidelines are provided regularly.  You choose entirely when to trade and when not to trade. Unlike services that offer just a few signals monthly, however, you receive many trade possibilities.

It's sad to say, but I've lost a lot of money trading options. What's different about your stock option day trading service?

We are not the Holy Grail. You will not get rich trading our signals, but stock market day trading with us can be very profitable. If you've done poorly in the past, there may be a number of factors why that is. Typically, it's because a stock option day trader doesn't have proper training in exit strategies and in position sizing your option trading. Our password-protected areas of the website have updated articles on trading, books to read, strategies, and it also teaches what to do and not to do with your stock day trading picks.


Does your stock day trading system work with Auto Trading?


Some of our signals can be auto traded by a brokerage, but not all. Because we offer a variety of signals, it's best to first find out what signals you want to trade.  Then, work with your broker.

I've never read a website that talks about "stop losses" and losing money so often. Why is that?


Simply because we tell the truth. Not all of your trades will be profitable. The key to success is not just what the trader buys and at what price.  Success in stock day trading online comes with a proper exit strategy and "position sizing" your investment so a losing trade doesn't break your bank.

My goal is to make a living trading options. Will your stock day trading system teach me how?


Yes. We can and do teach you how to trade index options successfully. We also teach the "rules of engagement" that separate the "dreamers" from the smart traders that carefully hone their stock day trading styles.


Why don't you promise the high returns that other day trading services do?


Okay, okay we wrote this question ourselves.  High returns with options are entirely possible but also higher risk and do not occur all the time.  The real profit in trading index options is the volatility and liquidity of the index and watching the trends, taking regular and consistent profits; Done right, this is where the real money can be made in option trading with limited risk.

Why is your service more expensive than others I've investigated?

AT OEX and Blue Chip Options we want to limit our subscriber base. "Not just a signal service" means that we teach, as well as provide daily signals.
If the service were "cheap" we'd gain lots of subscribers and the signals themselves would be less valuable to trade! We want to take advantage of the options we trade, NOT provide the signal to 1000's of subscribers.
You are paying for limiting our counsel to fewer people.

Who are you ?

There are several “old guys” that write OEX Options, led by Floyd, our lead trader. Floyd is a compilation author of trading opinions, and provided as educational financial services at www.oexoptions.com, our core website.

Our lead, Floyd, was raised in the stock market by full time stock trader and chartist and has spent his entire life “on the floor” and involved in trading stocks and options, long before the current popularity.  We bring seasoned knowledge of the markets, emotions, and the simple ways to study fundamentals, technicals, and the “events” that trigger volatility.

Our approach is unique in that we don’t just provide a “signal”, but a full alert with detail that allows the trader to make their own decisions, learn to trade, and not just rely on a “signal”.   We know ONLINE stock option trading, and teach momentum stock trading techniques.

Still Have Questions???

Send us an eMail at:
bluechipoptions@gmail.com

Signal Services for the Smart Trader™

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