That’s how many results you get when you hit up Google for a search on “options trading course”.
How do you pick and choose among them? Should you take Google at its word and choose #1? Do you choose the membership which promises 100% return in six months or your money back?
Where do I start?!?!?!
That’s the question I ran into when I first started my education on options. Sure, there are testimonials from people on the value of the program, but I’ve yet to find a program which just lays the results out in front of you without paying for it.
So, that’s what I’m going to do.
Much like book reviews on other sites, I’ll review and evaluate courses as often as I can (hey, I’m not made of money!) and give you the details on whether or not it’s worth your money.
Over the course of my membership, I’ll keep you up to date along the way on a few key items and provide a grade on the course/membership. Just like school, the more A+ they get the better!
Here are some questions I’ll be asking and answering on the course:
What is the return on membership? Let’s be honest, we all want to know how much you’ll earn following the program. Each month, I’ll highlight just how much money I make using the program’s specific strategy. This will be captured in a simple “ROI” metric at the beginning of each post, upfront and easy to see.
What’s in this course? Of course, I’m not going to give you their content for free! That would be a little illegal and immoral. But what I will do is provide a synopsis of what the course teaches and what level of understanding the course teaches to.
So, if you’re a beginner I’ll tell you if the course is too “high-level” for you or if you’re a seasoned trader you’ll learn if it’s too basic.
Is it friendly to small accounts? Let’s be honest, not everyone out there (including me!) is starting with a $300k, $100k or even a $10k trading account. As you know, I started with $4,861 in my account and to the date of writing this I’ve returned 9% on my account. What I’ll look at here is how accessible the program’s strategies are to those with small trading accounts.
How good is the customer support? Lots of courses and memberships I’ve studied promise 24-hour response time or faster. But do they really meet that metric? I’ll provide you access to the questions I ask and the quality of the response I receive.
Are there any prerequisites? What do you need to know before you take the course? Here I’ll break down some specifics on what you need to know before engaging in the course. If you’ve taken advantage of signing up for my newsletter here to gain access to a great list of free resources on the web, you’ll probably meet many of my suggested prerequisites upfront.
If the course turns out to be a great investment, I’ll add it to the list on my Resources page. If not, you can guarantee I’ll provide feedback to the course owner on why their course didn’t work for me and how they should improve it. But at the end of the day, it won’t end up in my recommended resources until they improve it.
Let’s learn about covered calls
Beginning in October, I’m going to enroll in the Blue Collar Investor’s membership site and take Alan’s course for a ride through the end of December. Here’s a link to the Blue Collar Investor if you’re interested. And no, this isn’t an affiliate link.
I won’t get into the details on the BCI’s process yet, I’ll save that for the next post! But here’s what Alan says you’ll learn in his About page video:
- How to locate the greatest 1-month covered call candidates
- How to use technical analysis for buy-sell decisions
- Which is the best option to sell
- How to calculate your returns
- How to utilize exit strategies – decrease loss & enhance profit
Continuing in the video on the About page is a list of benefits for BCI followers:
- Stock and option selection made easy
- Calculations simplified – free Ellman calculator for all guests
- Compounding your profits to financial freedom
- 2-4% monthly returns in normal market conditions
- Use a gov’t-approved plan for self-directed IRAs
Sounds good to me!
I highlighted the point on monthly returns, because this is a specific and measurable benefit I’ll look for in the program. Of course, the definition of “normal market conditions” I think is up for debate. What I think he is referencing is abnormal markets such as the drop in 2008-2009.
Why a course on covered calls?
I chose a course on covered calls for a couple of reasons, but let me back up. For those who don’t know, let’s quickly examine what a covered call is and I think it’ll become more apparent why I chose a membership based on this strategy first.
From our friend Investopedia a covered call is:
An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium.
If that’s confusing, here’s a Naked Option Trader definition:
You own or purchase a stock (minimum 100 shares) and sell someone the option (call option) to buy that stock from you at a set price (strike price). You get paid (option premium) when you sell the option and can make additional income depending on the price you agree to sell at.
For more details on the mechanics of covered calls, I highly suggest The Rookie’s Guide to Options, which you can find on my Resources page. Mark Wolfinger discusses this topic at length in Chapters 9-11.
Back to the reasons I chose covered calls to begin with.
Covered calls are considered a “basic” option trading strategy and usually a good starting point for beginners (i.e. me and you). It’s also considered to be a conservative strategy, which is why Alan mentions a 2-4% monthly return. From my reading, it’s hard to get much better than that on a consistent basis with covered calls.
There are many strategies out in “Googleland” which promise a much higher return, but they are usually more speculative in nature and less consistent. And I think, if Alan’s course turns out to be a good pick then this would be a great place for new options traders to start.
Let’s do this!
I’m excited to take this next step with you. I’m really intrigued to find out if the BCI membership will meet its 2-4%/month goal and if it’s easy to understand. If it is, you can guarantee I’ll keep my membership!
Stay informed on my progress through the BCI course by joining our growing Naked Options Trader community here. Next, I’ll discuss BCI’s Beginner’s Corner, what I learned and if I could apply it today without a membership!
Take care and happy trading!