I recently came across a presentation from Jim Woods about his new options-only advisory service called High Velocity Options and decided to see what it’s all about.
According to Jim, this service could have helped you turn a $20,000 trading account into $84,117 in 32 months based on the results he’s already seen. And he says investing in High Velocity Options is “as easy as investing in stocks,” so anyone can do it.
Sounds pretty cool, but is it legit?
Well, that’s a question I’m going to help you answer in this review. First, I’ll show you what the service is about and how it works. Then, I’ll shed some light on who Jim Woods is and share my opinion on whether or not I think his service is worthwhile.
How Does High Velocity Options Work?
High Velocity Options is an options-only trading advisory service run by Jim Woods of Eagle Products, LLC (AKA Eagle Financial Publications). And the goal of the service is to help subscribers make at least one “triple-digit winner” per month on average over 12 months.
If you’re not familiar with options, these are financial derivatives that give investors the right, not the obligation, to buy the underlying asset at an agreed-upon price and date.
For example, you could buy 100 regular shares of company XYZ for $5,000 ($50 x 100 shares), or you could buy a call options contract for the same company for a lot less (say $100 for example) that allows you to control the same 100 shares of company XYZ.
And if the underlying share price goes up before the options contract expires, you could exercise your options contract, purchase the underlying shares at the (now lower) strike price, and immediately sell the shares for a profit on the open market.
In case you’re wondering, the strike price is simply the price the options contract states you can buy shares for in the event you exercise the contract.
And in this example, the profit would be the difference between the strike price (price you paid for the underlying shares) and the market price (price you sold the shares for).
Alternatively, you could simply sell your options before they expire without buying any shares at all because, as the underlying asset increases in price, so does the option’s price. And this seems to be what Jim Woods’ system is based on – buying and selling options contracts.
But before we get into how Jim’s system works in more detail, it’s worth pointing out that “High Velocity Options” aren’t an actual type of option. Aside from being the name of the service, this is simply the term Jim Woods uses to describe the options trading strategy he’s developed.
And here’s how he explains his strategy:
High Velocity Options are typically a “slightly out of the money” call or put options with an expiration date of 30 to 90 days. They are fast trades that generate double- and triple-digit profits.Source: https://jimwoodsinvesting.stockinvestor.com/offer/hvo-high-velocity-options-launch
What’s a “slightly out of the money” call option? An Out of the Money (OTM) call option is where the option’s strike price is higher than the underlying asset’s price.
For example, if the strike price of an options contract for shares of company ABC is $120, but the company’s shares are trading at $110, then the option is considered Out of the Money because if you exercised it, you’d end up paying $120 per share instead of $110 (market price).
So, while it’s okay to buy OTM call options since there’s typically a month or longer before they expire, and the price could go up in that time, you don’t want them to expire OTM.
And in the case of a put option, provided the price of the underlying shares decreases before the put option contract expires, it’s still possible to make money.
In any case, to circle back to how Jim Woods system works… based on what he says in the presentation, and the example trades he provides, his system centers around buying and selling options contracts, not exercising the options contract to take delivery of actual shares.
There are many reasons people do this, too. But one of the main reasons is that options provide investors with a form of leverage. As in, you can use a smaller sum of money to make potentially higher returns compared to buying and selling regular shares.
This is because options are “tied” to the underlying asset (like shares, for example), and a relatively small move in the underlying share price can result in a significant percentage increase or decrease for the price of the call option it’s associated with.
On the flip side, options are more complicated than regular shares, and there are significant risks involved. Just as you can potentially make more money on the upside given the inbuilt leverage of options, you can also lose money very quickly.
However, as Jim Woods explains, with his system, the risk is limited to the amount of money you put into each trade. Jim recommends starting with a $20,000 trading account and says he typically suggests limiting each trade to a maximum of 10% of your portfolio, or $2,000.
Of course, that doesn’t eliminate all of the risk associated with trading options, but this is the strategy Jim Woods says he used to turn a $20K account into roughly $84K within 32 months.
Can You Really Turn $20,000 Into $84,117 In 32 Months With High Velocity Options?
There are no guarantees you will make any money at all with High Velocity Options, let alone that you will turn $20,000 into $84,117 within 32 months.
And this is true for any service; nobody can guarantee you anything when it comes to trading and investing since all investments carry risk, and nobody can predict the future.
That said, Jim Woods does state the following in the presentation:
With winners like that, your $20,000 starting account could have turned into an eye-popping $84,117 in just 32 months… making 84 trades between December 2018 and September 2021.
If you read that carefully, Jim isn’t guaranteeing you’ll make that sort of money. Instead, he’s saying you “could have” done so if you’d followed his 84 trades between 2018 to 2021. And assuming what Jim’s saying is true, that works out to a roughly 320% gain.
As a side note, High Velocity Options is a new service, so it appears as though these recommendations were part of his Bullseye Stock Trader service. Also, there are 34 months between December 2018 and September 2021, so I’m not sure what the deal is there.
Either way, based on what Jim says in the presentation, his High Velocity Options system appears to have a good track record. However, keep in mind that just because a service has performed well in the past doesn’t mean it will in the future.
What’s the secret to his success?
According to Jim Woods, “there are three secrets to trading High Velocity Options” that help knowledgable investors “potentially generate profits month after month, year after year.”
Jim says that the first “secret” involves investing in High Velocity Options that can hand you at least one triple-digit winner per month on average.
The second is that these “triple-digit winners” outweigh the losses overall. Jim admits that not all of his recommendations work out, but overall, he aims to come out on top.
Third, he limits the amount of money put into each trade to between $50 to $2,000 and says that the way he trades, your potential loss is limited to the amount you pay for the option.
There’s a lot more to Jim’s strategy than that, but that’s the overall gist of it. And to learn more about his strategy and get his trade recommendations, you’ll need to join the service.
What Do You Get If You Join?
The main thing you get when you join High Velocity Options is options trade recommendations from Jim Woods, and he aims to provide at least one new trade idea each week on average.
Each recommendation is sent to you via email or text and includes all the information you need to follow Jim’s recommendations, which include both call and put options.
A put option works similarly to what I described earlier, but instead of betting that the company’s price will go up, you’re essentially betting that the price will go down.
Aside from trade recommendations, there are numerous resources provided to members that are aimed at helping you become a successful options trader.
For example, educational training videos, access to the model portfolio so you can see Jim’s active recommendations, weekly updates, ongoing emails to help you learn, and Jim’s how-to guidebook for options called “The High Velocity Options Guide to Successful Trading.”
Cost and Refund Policy
According to the stockinvestor.com website, High Velocity Options normally costs $1,995 per year, but as of writing, it’s being offered at the reduced price of $995.
And there are no refunds available with this service. However, the company site says that if you don’t get at least “one triple-digit winner every month on average for the next year,” they will give you a second year of access to the service for free.
Who Is Jim Woods?
Jim Woods is a trading expert with over 25 years of finance-related experience. According to his profile on stockinvestor.com, Jim has experience as a hedge fund trader, broker, newsletter editor, and author. He’s also a former Army paratrooper and holds an MBA in philosophy.
According to Jim, his first proper job was at Investor’s Business Daily, a financial publishing company based in Los Angeles. However, after seven years, he left that role to become a trader at a private hedge fund and, from there, became a client advisor for Morgan Stanley.
It’s unclear when, but at some point, Jim got back into the world of financial education and is now the editor of, or advisor to, five Eagle Financial Publications advisory services:
- Intelligence Report
- Successful Investing
- Bullseye Stock Trader
- High Velocity Options
- Eagle Eye Opener
Jim has also contributed to financial sites including MarketWatch, Street Authority, and InvestorPlace over the years.
And he has an impressive track record based on his TipRanks profile, too. TipRanks is a third-party site that tracks the recommendations made by finance bloggers, and as of writing, Jim Woods is among the top 14 financial bloggers out of over 8,000.
On top of that, Jim has co-authored books on investing, including Billion Dollar Green: Profit from the Eco Revolution, The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, and Financial Crisis or Global Economic Collapse.
Is High Velocity Options Legit?
I don’t believe the High Velocity Options service is a scam.
Why? Well, for one thing, Jim Woods is a genuine trading and investment expert. He’s been doing this for over 25 years and, in that time, appears to have developed a strong track record.
Also, the company behind the service, Eagle Financial Publications, is a real company, and its team includes some of the most knowledgeable, respected investors in the space.
For example, Bob Carlson, Bryan Perry, Jon Johnson, and Mark Skousen have decades of experience, and I’ve written about some of their programs on this blog.
So, based on my research, I believe High Velocity Options is a legitimate service. However, in the end, I chose not to join it, so I can’t say for sure one way or the other.
I also want to point out that, regardless of how legitimate an investment service is, there’s no guarantee it will make you money. No matter how exciting the presentation may seem or how good the service’s track record is, there’s always a risk you could lose money.
Bottom Line: Should You Join?
Whether or not you should join High Velocity Options will depend on a range of factors such as your budget, preferences, and risk tolerance, for example.
From a budget perspective, Jim Woods recommends starting with a $20,000 trading account, and the service costs just under $1,000. So you should set aside at least $21K to get started.
In terms of preference, this service caters to people interested in trading options. Like anything, there are pros and cons to consider when it comes to options.
On the plus side, options can allow you to turn a relatively smaller stake into larger gains compared to regular shares. And there are other benefits such as using options to short stocks or earning income by selling options (there are many unique strategies).
On the other hand, options are more complicated than buying and selling regular shares, depending on your strategy. And just as the upside can be amplified with options, so can the downside risk (i.e., you can lose 100% of your position very quickly).
So, it’s really up to you to decide if this is right for you or not.
Generally speaking, if you’re a more conservative investor looking for longer-term opportunities or interested in earning dividends, there are more suitable alternatives. Whereas if you’re looking for a faster-paced, options-only advisory, this could be worth checking out.
Either way, I hope you found this post helpful, and if you’d like to share your experience with High Velocity Options, feel free to leave a comment below.