Frequently Asked Questions
What markets does 3xOptions broadcast trade alerts for?
At 3xOptions.com, we generate trade alerts for a select group of over 100 optionable US stocks and optionable US stock indexes.
In general, we track options for all of the leading US stocks and leading US stock indexes.
What time frames does 3xOptions broadcast trade alerts for?
In general terms, trading our weekly Gamma Bars strategy involves entering call or put option trades on Monday market open and exiting trades on the close of Friday of the same week.
We broadcast weekly Gamma Bars trade alerts for one week timeframes, which makes trading weekly Gamma Bars easy for working traders.
Traders also have the choice to exit profitable option trades at either of two profit targets during the week as well.
How many contracts should I buy when I get a 3xOptions Trade Alerts?
This will depend on your account size and your risk tolerance. We cannot advise you on how much risk is appropriate for your situation as we are not registered to give you personalized advice. However, in general, you could consider risking 1% per trade. For smaller accounts, you may determine that you want to risk more than this.
We do recommend that you risk the same amount on each Gamma Bars trade alert. This is very important to long term success in our opinion. The goal is to risk the same amount on every Gamma Bars option trade. This means that you will have to buy several options for some stocks on certain weeks and this also means that you will not trade other options if they are too expensive for your established per trade risk (depending on the size of your options trading account).
For example, if you determine to risk $200 per options trade, then your goal is to approximately risk this amount on each trade. The reality is that you may end up rising between $150 to $250 on each options trade, but your goal is to get as close to $200 risk on each options trade.
In the example below, you could consider buying the following quantities for the example option trade alerts below:
Buy GS 245 Call at 3.45 (Consider Buying 1 247.5 Call priced at 2.35 or 1 x $235 = $235)
Buy GLD 115 Call at 0.79 (Buy 3 x $79 = $237)
Buy BAC 24.5 Call at 0.30 (Buy 7 x $30 = $210)
Buy UNH 157.5 Put at 0.96 (Buy 2 x $96 = $192)
Where should I put my risk stop for each 3xOptions Trade Alert?
We do not use risk stops when trading the Gamma Bars options strategy. This is designed to avoid option market manipulation by the market makers that tends to cause good trades to be knocked out of winning trades.
Yes, this means that some option trades will be a total loss.
However, our experience is that most losing option trades will close out with some residual premium remaining.
Should I trade every Trade Alert I receive from 3xOptions?
Ideally, we recommend that you take all trade alerts because nobody knows which trade alerts will become winning trades.
Some trade alerts will be highly correlated, so you could elect to take only one or two trade alerts from highly correlated stocks.
You must decide which trade alerts to take and you must be willing to take the risk when taking any of our trade alerts.
Is trading options risky?
Yes, trading options is risky. When you trade options you are speculating and exposing your money to both the potential for gain and to the risk of loss. There is a risk of loss when trading options.
You have the potential to make a lot of money and you have the potential to lose all of the money in your account.
Our goal at 3xOptions is to always shoot straight with you. You need to be sure that the money you are trading with is speculative capital – capital that you can expose to the risk of loss.
Make no mistake, however, our goal at 3xOptions is to make you money over time.
Am I guaranteed to make money with 3xOptions Gamma Bars Option Trade Alerts?
No. Nobody who trades in the markets is guaranteed to win, despite what some people say. Our goal at 3xOptions is to always shoot straight with you.
However, we believe that the weekly Gamma Bars options strategy using our hedge fund caliber market analysis tools has a strong potential of winning over time.
Remember, successful trading is about probabilities (reference Our Trading Plan).
What type of options does your strategy involve (i.e. calls/puts, spreads)
We focus primarily on buying calls for bullish Gamma Bars forecasts and buying puts for bearish Gamma Bars forecasts. Nothing fancy. The genius of the weekly Gamma Bars strategy is that it is both powerful and simple to trade.
We typically only use option strategies with defined risk, like long calls and long puts. We are seeking to profit from directional price moves in the underlying markets that our Hedge Fund scanners identify.
We tend to stay away from option strategies that involve selling (or writing) calls and puts or strategies that are designed to primarily focus on Theta (time decay) or focus on Vega (collapsing volatility).
We like option strategies with limited risk and unlimited profit potential like long Calls and long Puts (puts have limited profits as stocks cannot trade below $0).
How many trades on average do your scanners broadcast on a monthly basis?
There is no minimum number of Trade Alerts we plan on broadcasting.
We track over 100 optionable US stocks and US stock indexes.
On average, you might expect to see 30 to 50 Trade Alerts per week.
However, if our scanner do not identify any special trading opportunities in a given week, then we will not publish any Trade Alerts for that week.
We believe that successful trading involves both knowing when to trade and knowing when not to trade.
Is each trade given with the specifics to remove the guess work from trading option(s)?
Yes. We don’t like gray area, nor should you. Each Trade Alert provides you with the following information:
The only unknown is where each option will open each week. You can get a general idea by looking at where each option closed the week before and where the underlying stock is trading pre-market.
I’m interested in the service but wondering if they’re typically directional options or complex like Butterfly, Iron Condor, etc?
We focus our trade alerts on trading the weekly Gamma Bars trading strategy, which seeks to profit from directional price moves in the underlying markets.
We use our hedge fund scanners to uncover Gamma Bars option trading opportunities that tend to capitalize on directional price moves in the underlying stocks or markets.
We don’t typically use complex option structures like the Butterfly or Iron Condor, which often focus on time decay.
When I look at my charts, my analysis forecasts a move in the opposite direction of your Trade Alert. What should I do?
Remember, you don’t have to take our trade alerts for markets where you disagree with our forecast. Also, keep in mind that you may be analyzing markets on a different time interval than we are.
Can you provide some background on your recommendations?
The developer of the Gamma bars trading strategy worked for two award winning hedge funds as the senior strategy designer.
Because we use proprietary hedge fund scanning technology to uncover our trade alerts, we do not disclose the background research or analysis behind our trade alerts.
However, the general strategy involves seeking to identify bullish or bearish Gamma Bar Clusters within longer-term high probability trade setups.
What if I get in several Trade Alerts and they go against me?
Trust me, as a hedge fund manager for almost 20 years, you will see losing trades. Although we expect to have winning trade alerts on average, we also will have losing trade alerts as well.
It could also be a situation that your current positions start off negative (losing) and then turn around and become profitable. So be patient and be sure to manage risk.
Remember, successful trading is about beating the markets through probabilities over time. A small number of losing trades does not tell the complete story, nor does a small number of winning trades.
I just registered for your service today. You have several open positions. As a new member seeing these open position for the first time, should I enter some/all of them now or is it too late to enter these trades?
In general, as a new member, we recommend that you only take new Trade Alerts on Monday morning of each week. The reason for this is that many of the open positons have gone in our desired direction and risk is now elevated.
But you do have the choice to look at open positions and, if the options are priced less than our recommended entry prices, you can consider entering trades at a discounted price.
If you do this, the same profit targets will apply to your late entry trades.
Should we enter a Trade Alert late that is now above the recommended price?
In general, we don’t recommend this. However, it depends on the situation. If a market is still hovering close to the opening price levels from the weekly opening on Monday morning, then it may be fine to enter a Trade Alert late.
If the Trade Alert has been open for a little while and the premium is now a good bit above the Monday opening entry price, then we don’t suggest you enter the trade the trader alert.
Do you include “Delta” levels with your Trade Alert decisions? For instance, do you normally go with “70 Delta” or use a lower delta of say “20 Delta” to try and hit more of a lottery type trade?
Our goal when trading weekly Gamma Bars is to trade Delta 50 ATM (At the Money) weekly options. The only exception to this is when a recommended option is too expensive for your account, then you could consider OTM (Out of the MOney) options above Delta 30 Values.
I’m confused. You state in your Trade Alert that you are Long Puts and bearish. Isn’t being Long a Put a bullish position?
Being Long a put is the same as buying a put. Don’t let the word “long” confuse you. Now, in a traditional sense, being long has the meaning of owning stock or owning another market, which feels bullish. However, when speaking about options, being long a put is the same as buying a put, which is a bearish position.
Market terminology takes some getting used to. Being short a put would be a bullish position. We typically don’t sell calls or puts because we don’t like the limited reward and unlimited risk characteristics of a short options trade.
Should I sell a portion of my position at Target 1 and again at Target 2? Should I stay in them until Friday?
Again, this would depend on your own money management strategy. YOu can choose to exit all or part of your positions at either profit target or on the close of the week on Friday. The profit targets are based off of Gamma SPikes levels and represent an alternative way to exit winning options trades. All Gamma Bars trades should exited on Friday at 4pm, which is the close of the week.
How is this a long when you’re buying a put? Can you get more specific on strike prices and target prices?
The term “long” means that you are buying or owning something. In the case of a put option, being long a put means that you own (buy) a put. We always provide the exact strike price where you should enter every trade alert.
I just signed up. I don’t see guidelines or instructions anywhere. How do I use 3xOptions.com?
Check out the link “How It Works” from the 3xOptions.com homepage and you should find all of the information you are looking for.
However, if you still have questions, we are here to help. Please email us at Support@3xOptions.com and we will be happy to assist you.
My 3xOptions email did not have profit targets for the trade alerts. Where do I find information on the profit targets for my trades?
In order to see the two profit targets for each trade alert, you need to log into your membership account at 3xOptions.com. We post a spreadsheet after the open on Monday mornings of each week that displays the profit targets for all of our weekly Gamma Bar trade alerts for that week.
The reason for this is that we don’t know profit target price levels ahead of time because they are based on the opening price levels for each market.
How to read profit targets for my option trade alert?
Profit targets are based on the price levels of the underlying stock or market, not on the price of the option contract.
This means when a stock, for example, reaches a profit target, your option contract should be very profitable and you have the option to exit part or all of that trade.
Or, if you choose, you can simply exit your trade alerts on the close on Friday of the week.
When will the alerts be sent?
Trade alerts will be emailed to you each Monday before 5am EST for the current week. That is the only time they will be sent. Trade alert orders should be entered MOnday on the open at 9:30am EST (New York) time.
Can I get the Gamma Bars indicator with this service?
The Gamma Bars indicators are not included in the Gamma Bars trade alert service. However, if you are a full member of 3xOptions (not a trial member), you will qualify for a sizable discount on all TopTradeTools.com indicators, which is the website that will list the Gamma Bars indicators for sale.
Is it best to buy right at the the open on Monday, or wait about 10 – 15 minutes after the open? I ask this because I find the first 5 minutes is often chaotic.
Always enter 3xOptions Gamma Bars trade alerts right at the open on Monday. You should have all orders in as close to the open as possible. You can either use limit orders, market orders, or market on open (MOO) orders. If you use limit orders, then you will need to watch the open closely to make sure that your limi orders were filled. You will often need to adjust your limit orders if that option opens higher than anticipated. YOu should be into all of your position within 5 minutes of the open (by 9:35am EST).
If a stock or the stock market experiences a major price gap due to a significant company or world event, then we would choose to reevaluate the trade alert(s) for the week. Significant price gaps (over 5%) due to extreme event can be problematic, therefore these markets are best avoided as a general rule.
How close to the close do you recommend exiting trades on Firday? At around 12:50 or later than that?
We recommend closing positions as near to the 4pm close on Firday as possible. We commend closing your positions within the last 3 minutes of trading (3:57pm EST) if you can navigate the order entry inputs on your traidng platform. This will take skill and practice, but it is easy to learn.
Is the profit traget shown the sell price or the actual profit no including the purchase price?
The target is the sell (or exit) price level based on the underlying stock, not based ont he option price. Profits targets are based on the Gamma SPikes strategy, which offers traders two alternative exit price levels for winning options trades.
How much does it cost?
As an early adopter, our monthly membership is $97/month.
You have no obligation, and may cancel at any time by contacting our support team via email.
You may contact our support team with any questions.