Welcome to my review of Options Floor Trader PRO.
I discovered this options newsletter through an email that led me to a presentation on the Investors Alley website. Jay Soloff, the man behind it, says he can help you turn your spare change into potentially hundreds, even thousands of dollars in as little as 23 days.
I’ve seen many presentations about making money with options over the years, so I admit I was a little skeptical. Still, I decided to take a closer look, and in this review, I’ll show you what I found.
Overview of Options Floor Trader PRO
As I started looking into Options Floor Trader PRO, one of the main things that struck me was how upfront Jay Soloff was about what the service is about and how it works.
During the presentation, he explains how the service is about buying options and shares insights into his strategy, along with some of the main “rules” he follows as a trader.
For example, he talks about three specific rules he follows to help ensure his strategy is successful over the long term and how he prefers buying options instead of selling them.
In case you’re unfamiliar with options, they basically give you the ability to speculate on the price of the underlying security (like stocks, for example) with a smaller amount of upfront capital.
Of course, there’s a lot more to it than that, and there’s a bunch of different strategies you can use, but that’s the general gist of it.
The good thing about options is they allow you to turn a relatively small stake into potentially much larger gains through something called leverage. And they allow you to make money whether the market is going up, down, or sideways.
The downside is that, with options, you don’t actually own a piece of a company like you do when you buy shares. So if the trade goes against you, you can lose whatever you invested. And depending on how leveraged up the trade is, among other factors, the losses can be significant.
So there are pros and cons to consider.
The strategy you use can make a big difference in how risky and profitable it can be, too. Without getting into all the nuances, the two main strategies involve either selling or buying options.
Selling options is more about generating income, and I only recently reviewed a service dedicated to showing people how to do this, called The Everyday Income System.
Jay says he does sell options but mostly recommends buying them to Options Floor Trader PRO subscribers since this is a better approach for making larger gains.
And that’s one of his main focuses with Options Floor Trader PRO, to help subscribers turn a relatively small amount of money into a larger one.
He also says his number one rule is all about risk management. So, even though he does strive to help you generate large gains, minimizing risk is a key consideration.
Who Is Jay Soloff?
Jay Soloff is the lead editor of Options Floor Trader PRO and the Options Portfolio Manager for Investors Alley, a popular financial publishing company.
According to his profile on the Investors Alley website, Jay was a professional options market maker at the Chicago Board Options Exchange (CBOE) before getting into financial education.
The website says he was also a senior analyst for a hedge fund, designed market-making software for Wall Street firms, and has multiple degrees. He holds one degree in economics, and the other two are Master’s degrees in science and information management.
All in all, Jay has over 20 years of experience in trading. And even though his main focus seems to be on Options Floor Trader PRO, he contributes to two other trading services.
One is an 11-part options training course called Options Trading Mastery, and the other is called Weekly Income Accelerator, which is all about generating extra cash from stocks you own. Tim Plaehn is a dividend expert who is probably best known for his work with The Dividend Hunter.
I also found another service Jay seems to have run at one point called Options Profit Engine, which looks similar to Options Floor Trader PRO. It doesn’t look as if Options Profit Engine is still running, though, which makes me wonder if maybe Options Floor Trader PRO is a rebrand.
How Does Options Floor Trader PRO Work?
Options Floor Trader PRO is a beginner options newsletter.
According to Jay Soloff, the goal of the service is to take you from a beginner options trader with a small account to a confident option trader with a larger account.
As part of the service, you get two trade recommendations each month, regular updates on each recommendation, and training on how Jay’s strategy works.
Jay says he uses a variety of different options strategies, but for the most part, he focuses on four main option buying strategies. And he says these are the same strategies he used while a trader at the Chicago Board Options Exchange (CBOE).
Regardless of the trading strategy, however, Jay says three main rules he follows can help you manage your risk and become a successful options trader:
- Rule 1: Manage Your Risk
- Rule 2: Trade Your Style
- Rule 3: Trade like the Institutions
As you may have guessed, the first rule is about limiting your downside risk. So even though you can lose your entire stake in one options trade if it goes against you, you can limit how much you’re willing to lose from the get-go, which Jay says is key to long-term success.
Preserving capital is how you get to fight another day. I’ll teach you how to hold on tight to your capital while also allowing enough breathing room for your option to soar in price.
The second rule is all about trading in the way that you feel most comfortable with. Unlike most traders, Jay doesn’t try to force you into using any one strategy. Rather, he teaches you four of his main strategies and lets you decide which one you like over time.
Because, according to Jay, he doesn’t believe there’s “one perfect strategy” when it comes to options because they are flexible, and there are so many strategies you can leverage.
The third rule involves trading less like an average trader and more like an institutional trader. And Jay says the key to doing this is to look at what options are “on-sale” and then consider the technical and fundamental analysis.
According to Jay, his strategy is about finding opportunities to “buy low and sell high,” whereas most traders are focused on trying to time the market.
To learn more about Jay’s strategy and access his trade recommendations, the idea is to join the Options Floor Trader PRO service. So let’s take a look at what you get if you join.
What Do You Get If You Join?
To get started with Options Floor Trader PRO, you first need to sign up for the service through the Investors Alley website.
The service normally costs $199 per year, but as of writing, you can join the service for $49.
And as a subscriber, the main thing you get access to are the bi-weekly trade recommendations and “educational write-ups” that come with each recommendation.
These break down the trade details and explain why Jay has recommended what he has to help you become a more experienced trader.
So it’s not just about getting a bunch of trade recommendations.
You also get access to an educational video series called “The Extra Cash Masterclass for Options,” designed to walk you through getting started with options as a beginner.
This series shows all you need to know to get started and walks you through Jay’s top four strategies for buying options, as well as other topics like valuing stocks and limiting risk.
On top of this, at the time of writing, subscribers also receive the following bonus reports, which are aimed at further educating you on how to become a successful options trader:
- 7 Reasons Options Traders Fail (and 11 Ways to Help)
- 26 Places to Locate “Extra Cash” in the Next 30 Days
All in all, it’s quite a comprehensive service, especially for $49.
Of course, you need money if you want to follow Jay’s trade recommendations using your own trading account. But the main focus of the service is showing you how to turn a relatively small account into a larger one, and Jay says most contracts are around $80 – $200 each.
So you don’t need a whole lot of money to get started or follow Jay’s recommendations. In fact, he makes a point of talking about using “extra cash” to trade with instead of going all in.
How Much Money Can You Make?
There’s theoretically no limit to how much you can make with trading in general, but at the same time, Jay points out that his strategy will not help you get rich overnight.
At the same time, he does say, “you’ll get 2 trades that could skyrocket even 127% in as little as 23 days” in one part of the presentation, so that seems to be what he’s targeting.
He also says if you’d put $500 into each of the following trade recommendations from 2019 and 2020, you could’ve made over a million dollars.
Here are the example trades he shows in the presentation:
- VXZ (367%)
- XLY (170%)
- WMT (178%)
- DISH (109%)
- FAST (233%)
- GLD (156%)
- XLB (222%)
- ARNC (70%)
- ETFC (1,421%)
And the following is what he says right after:
If you had cobbled together a mere $500 and traded each of these recommendations…
Rolling all your profits into the next trade…
You could’ve ended up with as much as $1,145,666
This is a bold claim, but he does immediately follow it up with the following:
Now, before we get ahead of ourselves. This scenario would take impeccable timing, not to mention each trade would have to follow the next.
I’m not here to promise $1.1M in 6 months. We’ll have losing trades. Everyone does.
But I just want you to have a crystal clear picture at the full potential of what I’ll show you — the huge, massive runway that’s possible if you just have $500 lying around.
So he’s more or less saying that this is what’s “possible” but that there will also be losing trades. Either way, turning $500 into $1,145,666 is not what you should expect on average.
To get an accurate picture of how Options Floor Trader PRO has performed on average, you need to see all of his recommendations since the service began.
In other words, you need to see all of Jay’s winning and losing trade recommendations. And I was unable to find this, so it’s unclear how well it has performed on average since it began.
Either way, it’s important to understand that there are no guarantees you’ll make any money at all with this service, or any other service for that matter. So, regardless of how well it has or hasn’t performed, there are no guarantees it will make you money if you sign up.
Is Options Floor Trader PRO Legit?
I don’t believe Options Floor Trader PRO is a scam.
I admit I was a little put off by the whole “$500 to $1.1 million” example Jay shared in the presentation because even though this may be possible, and he doesn’t promise you’ll make that kind of money, I still think it’s a bold statement. So I would take that with a pinch of salt.
Nevertheless, it does appear to be a legitimate service.
And there are a few main reasons I say this…
First, it’s run by a real trading expert and backed by a real financial publishing company, Investors Alley. Second, it’s a comprehensive service. And third, it comes with a money-back guarantee.
The first part of the guarantee states that you can try the service for 364 days (one day short of a year), and if you’re not happy with it, you can request a full refund.
And the second part (more or less) states that if Jay doesn’t give you the chance to 5X your $49 investment in the service itself, you’ll get a second-year free. I have to admit, the way this was worded was a little odd, but this is my understanding of it anyway.
Here’s how Jay puts it:
If in the next 12 months, you aren’t served an opportunity to 5X your investment in Options Floor Trader PRO today, then you will get a $100 check written to you from me personally.
This check will be cashed in for you as a FREE second year of Options Floor Trader PRO for you to enjoy.
Meaning, I will double your investment today if I don’t give you an opportunity to 5X your $49 investment.
In any case, the important thing is you can get your money back if you’re not happy with the service. And while that doesn’t guarantee it’s legit, it does reduce some of the risks.
Of course, the other main risk to consider is the money you could lose if you follow Jay’s recommendations and they don’t work out.
I guess that’s a risk you take with any service, though. And you could follow along with a free demo trading account before using real money if you’re concerned.
Options Floor Trader PRO is an options newsletter service designed to help you go from a beginner options trader, with a small account, to a confident options trader, with a larger account.
For $49, you get bi-weekly trade recommendations, a detailed write-up on each recommendation, regular updates on the recommendations, and training videos to help educate you on how to become a successful options trader from scratch.
Overall, I think it could be a worthwhile service if you’re interested in learning how to make money buying options, especially if you’re a beginner and on a budget.
At the same time, however, as with any trading service, there are risks involved. And there are no guarantees you will make money. So while it could be worth checking out, I wouldn’t rush in expecting to turn a few hundred dollars into a large sum of money within a few weeks.