Stock Option Investment Advice

How to Succeed with PowerOptions

We all want to succeed by making money with our investments.  PowerOptions was designed to provide a set of tools to help and enhance the probability of success.  If used properly PowerOptions can help you make more money.  Follow these three steps on your road to improved performance:

  1. Stock and options selection:  Use the PowerOptions stock & option screening tool to select the stocks and options with the highest probability of success.  Create and save a screening profile with parameters of proven value to find stocks with strong fundamental and technical attributes.   Start with our default parameters and enhance them to meet your strongest requirements for stocks you expect to be winners.
  2. Tools to investigate prospects:  Once you have a screened list of possible candidates, investigate them further.  The “more info” key will enable you to examine the stock graphically, view recent news items, verify earnings and dividend data, and examine option chains.  PowerOptions is basically a portal site to the information needed to make wise and informed investment decisions.  When your selections are further narrowed, there are profit/loss graphs available to evaluate risk/ rewards for the positions chosen.
  3. Portfolio management after a selection is made:  In steps 1 and 2 a decision was make to enter a position.  But that is only the beginning of the investment journey.  Money isn’t made until the position is exited for a profit.  Management of the position is essential to long term success.  Management consists of several essential steps:
    • Tracking – PowerOptions tracks your positions not just the individual securities.  A purchased stock and a written call against that stock are monitored as a Covered Call position.  Both the stock and the option are evaluated as one total position.  Liquidation of the position and roll out possibilities to improve profitability can be continually evaluated.
    • Setting alerts – it is important to monitor the position for exit to limit loss or to look for opportunities to improve the position with a roll or other techniques.  Alert notices can be set by price, % change, new highs/lows, moving averages and many other parameters to make it easier to maintain and follow your positions.
    • Documenting results – it is important to document your goals, thinking, and actions to help provide data for improving investment results.  Each position has an event/notes field for recording changes and news events associated with that investment.  These notes can then be used to review the investment process for improvement.  Each investment should provide experience to improve results in the future.
    • Liquidating the position – the decision to liquidate must be continually monitored.  Sometimes it is to prevent further loses, but hopefully it is to collect a profit or modify the position to reduce risk or increase profitability.  These alternatives can be easily examined with the use of a position analysis available in the portfolio program.


Following these three fundamental steps can be the key to improved investment results.  If you need help in implementing any of the steps, our support staff is here to help.  Just call us at our toll free number or set up a coaching session from the home tab.

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