I joined BookingAlpha 4 months ago and in fact I'm still in a BookingAlpha trade that has taken a 45% loss (9 thousand dollars), was rolled twice, and is now below the 115.5 short strike, and is closer to the long 113.5 strike price which in the end could produce a 100% loss (for a total of 145% loss).
The IWM has been down over the last two weeks and it is unavoidable that this trade needed to be adjusted or closed. The problem with BookingAlpha is not that the current numbers are cooked; there have been a lot of winning trades in 2014. The problem is that trades frequently enter into the money (ITM). This current trade could have been closed or rolled for a minor loss at several different strike prices. However it's as if BookingAlpha is "hoping" that the IWM underlying price will rise and so adjustment/close rules are ignored which is not excusable.
If the stock market would have tanked you could understand that perhaps exiting the trade without a more significant loss was unavoidable, but in this case there was a steady progression down which should have been managed before the trade ever got near 115.50 (the short strike). I suppose the other problem is the lack of communication which is pretty much limited to when trades are entered or adjusted.
Be aware that one 100% loss on a trade takes about 20 weeks of successful trades to re-coup. A 45% loss nearly wipes out every cent I have made by investing with BookingAlpha over the last 4 months. I also trade with ManyWaysToTrade (Options Scalper) which appears to have a much better risk management record and has zero losses this year. They trade SPY (S&P 500 ETF) instead of IWM (Russell 2000 ETF) that Booking Alpha trades. ManyWaysToTrade does not let their trades get into the money, and whenever the underlying is near the short strike they will begin to send out e-mails to alert clients about what they intended to do, and under what conditions. You don’t get that from BookingAlpha until the adjustment occurs and so you’re in the dark (and worried) until the adjustment occurs.
I don’t have a personal issue with BookingAlpha, I’m in this to generate income. I also don’t hold the unavoidable against the newsletter. I do however have a real issue when a trade that could be managed well is allowed to go ITM and puts my investment dollars at risk. I will no longer be investing with BookingAlpha after I get out of this (now three week trade – which has been adjusted twice). FYI – I have been investing with the weekly options trading service at BookingAlpha.
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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