Started investing when I was in my 20s. I began investing in ETFs through a platform known as Raiz (aka. Acorns in the US). It was an excellent method to begin my journey into trading stocks. I just picked one of Raiz’s risk portfolios I felt confident with and made sure to deposit money into my account each time I received my paycheck. The approach of averaging the cost of a dollar worked for me well — until when I was consistently earning over 10 percent p.a.
Recently, I’ve decided to take the time to study the basics of investing. Particularly I’ve been researching options trading since, when compared to stock trading, it requires less capital at first and allows for a wide array of strategies to increase portfolios under all market conditions. It is possible to earn money from options no matter if the market is trending either way, up or in a sideways direction, if you follow the correct strategy.
Content all over the world, everywhere
Since there are numerous ways to trade options, it can be a bit confusing for those who are new to the field to decide what’s the best method to make money using options. There is a plethora of instructional content on options trading available on websites, and this can be beneficial and detrimental. The benefit is that it allows us to be exposed to a variety of trading strategies and concepts. It takes some time to sort through the vast amounts of information, and it can be difficult to determine which of the self-proclaimed gurus are genuine.
I scoured several YouTube channels I viewed several YouTube channels, including Options Alpha, ProjectOptions, and Drawbridge Finance. Then I discovered David Jaffee’s Best Stock Strategy channel.
David Jaffee and Best Stock Strategy
Some people might not notice David’s work since his videos and website aren’t as attractive as other teachers on the market. However, I was amazed by how thorough David’s instructional videos were while scrolling through his Youtube channel. David clarifies complex concepts of options using simplicity and clarity. David is quite open when discussing his trading philosophy as well as personal beliefs. David is also extremely open in revealing his trading statements which, in my view, increases his credibility.
In addition, based on his trading records and student testimonials, David is a very profitable options trader. He is aiming for 40% annual returns. However, he appears to always exceed his goals (+117 percent during 2019).
David’s strategy for trading options is fairly simple. In simple terms, David sells put options for companies with large capitalizations and high liquidity in the event that they are trading below their historical average. He earns his profit by selling insurance for stocks he anticipates to expire without value (though the majority of times, he does not close his trades prior to closing to make his gains earlier and reduce his risk).
David only offers options to large-cap market leaders in the event that their price drops for a variety of reasons. 1.) it lowers risk as prices tend to mean-revert in the short-term, 2.) it permits us to earn higher premiums with higher implicit volatility, and three) it removes the necessity of conducting research since the price of major companies is based on all public information we have regarding the company.
Concentrating on a small number of companies makes it possible for David’s strategy to not require much time commitment. He claims that he only spends an hour or so looking over his watchlist every day and makes 3-4 trades each week. If you follow David’s plan, it is possible to earn profits trading options while keeping an active job!
David provides two paid services to complement his content for free: the step-by-step course, $1,849, in which he discusses the many nuances of his strategy for options, and a month-long membership to the trade alerts costing three hundred dollars per year (with the option of a seven-day trial at $19).
It’s enough to say that these are expensive services. After examining his past and present, I’m convinced David is an authentic guide. I could easily justify the expense of the program if I am able to trade options efficiently. I’ve certainly spent much more studying at university, but it was deemed to be unnecessary!
The course is being completed.
- The Best Stock Strategy course consists of 12 lessons. David distributes one lesson every day via email instead of giving all the information in one sitting. David explains that students learn more when they are able to sleep on the knowledge that will help them to retain their understanding of the content.
- The course is extremely extensive: it gradually moves through the basics of terminology and concepts about options to creating and managing your trading. The most difficult but beneficial content was found in lessons 5-8, in which David explains the underlying principles of his method. They’re very well done and worth watching multiple times.
- I have found David to be a superb teacher. He takes care, not to overload students with a lot of information. He is quick to the point and only teaches the basic principles and techniques to make a profit in trading options. He breaks down a myriad of factors (e.g., how to place the strike price or when to close or roll the trade) into straightforward questions to assist you in making better decisions.
- David is also extremely responsive to students’ queries. I gave him a list of concerns I had following the completion of the course of 12 days, and he responded quickly by video message.
- Overall, I’m pleased I took David’s course. I’ve learned so much and am now much more confident trading options. I’ve been doing a lot of practice on a paper account with his method and am getting excellent results so far.
But David’s method (or any strategy to trade, to be precise) is more of an art rather than an actual science. Don’t expect to walk from the workshop with a strategy that can be executed mechanically. Although David will teach you the basic guidelines and the right mindset to make the right decisions in trading options, it requires years of experience to make the correct choice in a variety of circumstances.
I think that trading options are similar to learning how to play a sport: While I can acquire the essential principles needed to become an effective player by following an instructor’s instructions, I will only be able to learn the game by getting into the game. This is the same for trading. My ability to make smart choices in trading can only be enhanced by actual knowledge.
Final word
In sum, I think David’s trading method is sound. But don’t think you can master his method immediately, particularly in the case of new trading. According to how Emmett says in his article, “you will need to be exposed to more than two weeks of unrelated market conditions. You’ll need to be exposed and keep your fingers on the pulse of an event that could cause market turmoil.”
I believe that people need to commit to at minimum three months of David’s trading alerts to help embed his approach. It is important to consider the time commitment as well as the financial costs when making your choice.
I’d also suggest watching his videos and doing a lot of research before buying his services. Here’s an online link to all reviews on Youtube I’ve found on David Jaffee. There’s also a critique of the David Jaffee course by the scam-watching website TradingSchools.org.
Trading isn’t just a form of gambling, although many traders see the subject as such! Instead, it is an ability that can be learned. It is also possible to master any skill that is much less difficult and time-consuming with mentors who help and guide you along the journey. I’m convinced David is a reliable instructor to that both experienced and novice traders can benefit.
