Welcome to Delta Report: Here’s How to Get Started
Congratulations on taking your first step into the highly profitable world of options trading. I'm Jeff Clark, your editor. Thank you for joining me on this new venture.
Before launching Delta Report, I wrote two other successful newsletters at Stansberry Research, The Short Report and Pro Trader.
Before that, I was the president and chief executive officer of an independent, San Francisco-based brokerage house. I've also founded an investor education firm... developed the curricula for an international MBA program... and served as a consultant to one of the country's largest options market-making firms.
My goal with Delta Report is to provide you with consistent money-making opportunities in the world of options trading.
Today, I'd like to explain a little bit about how Delta Report works and show you how to get the most out of it. We'll walk through a typical issue, and I'll show you where to find everything you need to get started. This will only take a few minutes...
Each week, I select the best trade to recommend to my subscribers. My trading ideas can come from anywhere. I typically review between 1,200-1,500 stock charts each week. I then aim to find an option trade that gives us the most favorable risk/reward setup.
In general, I shoot for options that offer three times as much upside potential as downside risk. We specialize in short-term trades: getting into a position one day, and getting out with big gains a few weeks later. Sometimes, our trades last only a few days.
Also, remember... unlike most people who trade put and call options, we don't use them to gamble or gain excessive leverage on a trade. We use them to reduce risk. (You can learn more about this concept in the first video of my options video course, "Understanding Options and Buying Calls." To access the video series, click here.)
We also look for opportunities to use options to generate income. Sometimes, the best trade available will involve selling covered calls and/or uncovered puts. These are conservative strategies that can create high rates of return.
How I Pick Trades
In addition to the huge number of stock charts I review every week, I also use a few dozen technical indicators to spot profitable trades.
For instance, I've recommended trades based on the MACD momentum indicator, bullish falling-wedge patterns, investor sentiment, bullish percent indexes, summation indexes, volatility, and Bollinger Bands, among others.
You'll find trades based on a number of strategies in Delta Report. But the bottom line is that we're here to make you money in the most bullish setups possible.
We use both conservative and speculative trades to do this. The trades we typically recommend are buying call options (betting on the stock to go up) and selling put options (the stock doesn't need to rally to make money).
For Options Beginners
The world of options trading can seem overwhelming. So before we go any further, there are a few simple steps you can take if you are new to the strategy.
- Watch my option training videos
- Read the Guide to Option Trading
- Learn How to Open an Options Account
- Understand the risks involved
The Delta Report Training Center has a host of videos and special reports that will teach you the fundamentals of trading options. Here you’ll find an 8-part video course where I show you the most important lessons in options trading. While I hope you would want to watch all 8 lessons, I strongly encourage you to at least watch videos 1-3 to understand the basics.
The Guide to Option Trading is a comprehensive introduction to trading calls and puts. You’ll learn how to pick the right option trade… and how to use options to reduce your risk. It also provides a glossary of important terms as well as real-world examples of successful option trades. Use it as a supplement to the Training Videos.
The first step to trading options is to have a brokerage account that allows you to execute these kinds of trades. This is a fairly straight-forward process that can be done in as little as a few minutes. Read this step-by-step guide to learn how.
As I mentioned above, our goal is to use options to limit risk. But that doesn’t mean the strategy is risk-free. It is possible to lose 100% of the funds committed to trades I recommend. So don't risk money you can't afford to lose. It's simply the nature of buying calls and puts. That said, we do try to limit our risk by trading favorable risk/reward setups.
To figure out your proper position size, it's important to note that each option contract represents 100 shares. So if your normal position size is 1,000 shares, you would want to buy 10 options contracts. If your normal position size is 100 shares, you would want to buy just one option contract.
Calculating stop losses with options is the same concept as with stocks. And I generally recommend a stop loss with our new positions.
How to Place a Trade
Placing option trades with your broker is similar to buying or selling short a stock. You log in to your brokerage account, type in the ticker – for instance, MSFT150117C00047000 for the Microsoft January 2015 $47 calls – and execute the trade.
You can look up option prices on sites like Yahoo Finance by typing in the stock ticker and clicking the link titled "Options" (shown below). That page will show you the available calls and puts and what they're trading for.
Services and Publication Schedule
Delta Report issues every Tuesday
Every Tuesday at around 10 a.m. Eastern Time, a new issue of Delta Report will arrive in your e-mail inbox. You can also access them online at www.jeffclarktrader.com and clicking “Delta Report Issues” on the menu bar.
I'll have a new recommendation for you almost every week. Included in each weekly issue is a brief write-up of the opportunity I've found, the recommended trade, ticker, buy-up-to price, and the trade's upside.
I also include a Portfolio Update in every weekly issue, which is a section devoted to keeping up with our current portfolio holdings.
Jeff Clark Direct all day
Jeff Clark Direct is where I provide real-time stock market commentary throughout the day. As a Delta Report subscriber, it's free to you. You’ll find it on the Delta Report website. Just click “Jeff Clark Direct” on the menu bar.
If you like to "day trade," you can leave Direct open all day, since I post market updates and trading ideas as the market moves. When you login to the site, you’ll be asked whether you’d like to receive desktop alerts. If you “allow” them, you’ll receive a notification on your desktop whenever I release a new update.
Jeff Clark Trader Mobile App
You also have instant access to all of my services through the Jeff Clark Trader mobile app. iPhone users can download it here from iTunes. Android users can download it here from Google Play. Through the app, you can receive instant notifications to your mobile device when I post a market update or send a trade alert.
Email alerts when needed
When I have news on one of our positions, I'll send out an e-mail alert along with a blog post. These alerts often include buy or sell advice, so I make sure to get them to you as quickly as possible and while the market's still open.
Jeff Clark’s Market Minute every trading day
Each morning the market is open, you’ll receive my Market Minute straight to your inbox. It tells you where I think the action is headed for the day… including which sectors to watch and which to avoid. If you’re an active trader, it’s a valuable tool for preparing your day. It’s how I plan to trade my own money.
If You Have Questions
If you have any questions, comments, or spot an error, feel free to write me here. I read every email I receive, and will use your feedback to improve the service.
For customer service-related questions, you can e-mail our professionally trained customer service team at 800-752-0820 (or 443-353-4499 for International calls). The team is available from Monday to Friday, 9am – 7pm Eastern Time.
Once again, welcome to Delta Report. I hope you'll find the world of options trading as fun and exciting as I have over the past three decades.
Best regards and good trading,
Jeff’s intuitive feel for short term market swings and his strong protective discipline have allowed me to lock in thousands of dollars in gains where I might otherwise have just ridden the markets up and down.” -Chris, a reader and “seasoned investment advisor” from Seattle
Jeff -- your picks and analysis have been nothing short of amazing. I have traded the market for many years but I must admit, I have NEVER seen something this good.” - Mike H.
In only 2 weeks of using the service I’ve booked over $10K in profits. Needless to say I’ve paid for my membership.” - Tony J.
I started following Delta Direct about 3 weeks ago… I bought a small investment from one afternoon to the next morning. About 11AM I got out and made 8K in less than 24 hours.” – D. Tilghman