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LEAPS Q & A
1 / Q: “WHO RUNS YOUR SERVICE?”
A: Acknowledged options expert Joe Lesko is the “Option Principal
“with over 35 years trading experience. During his career, he has
been a trader, broker, market writer, market strategist and options
principal, along with numerous TV appearances. He now devotes 100%
of his time to his service, which is followed worldwide.
2 /Q: "What is your average trade?"
A: Our average trade is about $1000.00 for a single contract.
3 / Q: "How much money do I need to trade all your
recommendations?"
A: We are publishers, not investment advisors or money managers,
as such we can’t go there. I can say that our trade recos range from
4 to 14 hundred dollars per contract, with an average of 10 points
($1000). In addition we rarely have more than 18 open positions.
Share that information with your personal financial advisor and / or
broker to set the parameters for your trading account.
4 / Q: What is your trading strategy?
A: History teaches that market recoveries usually come in sector
waves. Our mission will be to indentify sector leaders and ride the
wave until it tops out, then moving on to positions showing signs of
upside momentum. Our trading vehicle will be two year options in
most cases, along with a combination of one and two year contracts
if the price is right. Unlike short term options which we usually
buy and sell at the market and be using Black Scholes as our model.
Every LEAP recommendation will be posted with a limit price at fair
value, if we can’t get in at our price there will be other
candidates. In addition once profitable every option will have a GTC
trailing stop in place that can be adjusted along the way. Using
limits and stops eliminates the need to be at your computer all day.
Position plays and stop adjustments will be sent by email, along
with a market report and updated open position box every weekend. If
that does not work for you consider Auto Trading with one of the
brokers listed on our web site. They execute trades (buy or sell)
within minutes of receiving our emails. We also send you a copy for
your personal record keeping.
5 /Q: Do you receive commissions from the Auto trade of any other
Brokers?
A: NO, we do not receive compensation of ANY kind from the brokers,
nor do we have access to your accounts under any circumstances. We
are publishers, NOT investment advisors.
6 / Q: "Do I need a Username & Password?"
A: No everything (buys or sells) is done by Email. In addition all
open positions are reviewed in our weekend report.
7 / Q: "How long are you in a trade?"
A: LEAPS are by definition long term trades, so anywhere from 5
months to several years.
8 / Q: "Do you use stops to protect positions?"
A: YES once a position is profitable we start with cost. Followed by
cost plus 50% of profits on a trailing basis, letting the market
take us out when the move is over. This way there is no need to
watch your positions all day.
9 / Q: "How many trades do you post every month?"
A: 2 to 4 but don’t hold us to that. We won’t put on a trade just to
give you action. If the set up is not right, we will wait for a
better entry point.
10 / Q: "How often will I hear from you?"
A: weekly roundup Sunday evening, which reviews every position. In
addition, Email alerts are sent for every new trade, to you and the
brokers Auto Trade desk. You will also receive an Email when its
time to close out a losing trade or take profits.
11 /Q: "What if I have questions?"
A: We are available to answer your questions by Email or Phone at:
12 / Q. Do you plan on using these LEAPS to sell calls against them to
collect premiums and reduce cost / produce income?
A: YES one of my favorite strategies is to "leg" into a free trade. That not
only takes all the risk out of the trade but also frees up the original capital
for another trade.
Phone :( 561)622-2777
JoeLesko@optionprincipal.com
CustomerService@optionprincipal.com
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