Hi and welcome, today I’ll be looking into a recent Ian King presentation about “Profit Framing,” a strategy he claims saw an average of 18% gains every three weeks in a recent beta test.
He also claims that “Profit Frame trades pay you as soon as you establish the position” and that the strategy allows you to take advantage of non-directional trade opportunities.
As the presentation pointed out, seeing an 18% return every few weeks is 10x better than a 10-year Treasury pays in an entire year. So I was a bit skeptical and also curious to know how it worked, especially since Ian King refers to Profit Framing as a “conservative” strategy.
Long story short, I did my homework to learn what his new strategy involves, and in this post, I’ll show you everything I found. But first, here’s a quick summary of what it’s about:
- Profit Framing is the name of a new strategy Ian King has been using to make non-directional (AKA market-neutral) trades using options. And according to a beta test where he “paper traded” the market, it saw an average 18% gain every three weeks on average.
- Based on my research, I believe the (actual) name of Ian King’s strategy is The Iron Condor, a market neutral options trading strategy involving credit spreads. As I’ll explain in this post, this strategy matches up almost perfectly with what he describes in the presentation.
- If you want to access Ian King’s Profit Framing strategy and get his trade recommendations, you’ll need to join his new advisory, Elite Options Alert, for $2,997.
Read on for my complete review.
What Is Profit Framing and How Does It Work?
Profit Framing is the name of an options trading strategy Ian King has been using to make non-directional (AKA market-neutral) trades.
I first learned about it through a recent presentation on the Banyan Hill Publishing website. The presentation featured investment guru Ian King and host Corrina Sullivan, and I have to say it was one of the least-overhyped presentations I’ve seen from Banyan Hill in a while.
During the Profit Framing presentation, Ian King explained what the strategy is, how it worked, and of course, pitched a paid service he recently launched called Elite Options Alert.
How does Profit Framing work?
As Ian King explains during the presentation, most traders speculate on the market’s direction (i.e., up or down). However, he points out that the market trades sideways about 80% of the time, so he launched this service to help everyday investors profit when a stock or ETF is trading in a sideways range, which he defines through technical analysis.
The goal of the strategy, according to Ian King, is to profit when the stock is trading between the top (resistance) and the bottom (support) of the range he’s identified.
He calls this the “profit frame” and says that as long as the price stays within this “frame” (AKA trading range), there’s potential to make money.
Sounds simple enough, right?
Well, in some ways, it is. However, the actual mechanics of this strategy is pretty complex and involves a method used by professional money managers.
What’s Ian King’s method?
Ian King doesn’t reveal the (actual) name of the trading strategy he’s using. Instead, he calls it Profit Framing (which is essentially a name he made up) and talks about how it works. And based on that, I believe I know what underlying strategy he’s referring to.
Let me explain…
First and foremost, Ian King’s “Profit Framing” strategy involves options, and as he points out, there are four main types of options. For example, you can:
- Buy a call option
- Buy a put option
- Sell a call option
- Sell a put option
Each strategy works differently and has its own set of risks and rewards, and I won’t go into detail on each. However, in short, options give you the right to buy or sell the underlying asset (like shares of a company or ETF) for a set price on or before a set date.
And with Profit Framing, Ian King uses a combination of all four options strategies through a trading approach known as a credit spread.
A credit spread involves buying one option and selling another in the same class and expiration, but at different strike prices. And it’s often used to generate income.
If you’re new to options, wrapping your head around all of that is one thing, but that’s only part of it (lol). There are multiple credit spread strategies, too.
As this article on projectoption.com explains, the top three credit spread strategies involve a put credit spread (bullish bias), call credit spread (bearish bias), and The Iron Condor (market-neutral).
All three strategies benefit from something known as “time decay” (in other words, the longer you stay in the trade, potentially the better). However, only one strategy aligns with what Ian King talked about during the presentation: The Iron Condor.
Unless I missed it, he doesn’t specifically mention this strategy in the presentation. He only talks about the credit spread and how the strategy benefits from time decay, but it’s the only logical fit based on his description of Profit Framing. And the reason is that the Iron Condor is the only credit spread strategy that benefits from sideways price action.
In other words, out of the three, it’s the only credit spread strategy that would benefit from the “non-directional trades” Ian King says his Profit Framing system takes advantage of.
In the end, Ian King isn’t looking to profit from the price going up or down; he wants the price to stay within the trading range (AKA “profit frame”). And as he points out, the longer he’s in a trade where the price is within his pre-defined range, the more profitable the trade can be.
There’s more to how this strategy works than that, and I’m not an expert on trading credit spreads, so I highly recommend doing your own research on this topic.
However, I found a Youtube video that breaks down the Iron Condor strategy in more detail that you might find helpful. This is not an endorsement; I just thought you might find it helpful:
Another thing I want to mention is that the reason Profit Framing trades “pay you as soon as you establish the position,” as Ian King states, is because the trader collects the option premium upon entering a credit spread trade.
And if the price of the option’s underlying asset is between the “profit frame” when the option expires, my understanding is that you get to keep the premium. So that explains Ian King’s comment that “you know right up front how much you could make” with each trade.
How much do you need to get started?
According to Ian King, the more money you want to make with his Profit Framing strategy, the more money you need because you need collateral in your account to cover each trade.
You also need to apply for a margin account with your broker, which Ian King describes as a “simple upgrade.” However, it often requires having at least $5,000 in your trading account.
In any case, Ian King suggests starting with at least $10,000 all up. And that’s on top of the (almost) $3k for Ian King’s Elite Options Alert trading service, which you’ll need to join if you want to take advantage of his options trading strategy.
That’s a lot of money. So to help you decide if it’s worth it or not, let’s look at how the service works and what you get if you choose to join.
How Does Elite Options Alert Work?
Elite Options Alert is a trading service run by Ian King of Banyan Hill Publishing that uses “Profit Framing” to help subscribers successfully trade options.
As mentioned, Profit Framing centers around an options trading strategy known as credit spreads. And based on what Ian King says in the Profit Framing presentation, I believe the specific credit spread strategy he’s using is called The Iron Condor, which allows traders to take advantage of sideways price action when they’re neither bullish nor bearish (AKA neutral).
What do you get if you join?
At the core of the service are the “Elite Options Alert Trades,” trade recommendations sent to subscribers once or twice a month detailing Ian King’s latest “Profit Framing” plays. As part of each recommendation, subscribers get a video that walks you through the details of each trade recommendation, so you know how to follow his picks.
You also get access to some training resources aimed at helping you learn how Ian King’s options trading strategy works, which I think is a big plus considering how advanced this method is.
Here’s an overview of what’s included:
- Profit Frame Trading 101: a three-part video tutorial that walks you through Ian King’s trading strategy so you know how it works before you get rolling.
- Elite Options Alert Fast Start Guide: a PDF guide that compliments the training videos.
- Trading Webinars and Courses: Ian King says he’s always updating the Elite Options Alert knowledge library with webinars and courses to help subscribers become more successful.
On top of this, subscribers get access to a members-only website and regular updates on anything that could affect the trade recommendations he’s made.
What about the cost and refund policy?
Elite Options Alert costs $2,997 for 12 months’ access, and unfortunately, there are no refunds available on this service, according to the Banyan Hill Publishing website.
Recommended: Go here to see my #1 rated stock advisory of 2024
Who Is Ian King?
Ian King is a former hedge fund manager with over two decades of experience. And according to his Banyan Hill profile, he worked for some of the largest firms in finance during his career, including Citigroup, Salomon Brothers, and Peahi Capital.
In 2017, Ian King joined Banyan Hill, where he’s now the editor of four investment advisory services, including Strategic Fortunes, New Era Fortunes, Next Wave Crypto Fortunes, and most recently – Elite Options Alert.
I’ve reviewed the first two advisories listed above, so check out the links I just shared if you want to learn more about those. I’ve also written about several of his presentations.
For example, I recently wrote about Ian King’s Infinergy stock pick, which centered around a solar company he was bullish on. And before that, I wrote about his top EV pick.
Ian King runs different presentations to promote his services, but most of his services and recommendations revolve around emerging trends, particularly as it relates to technology.
That’s why I was surprised to see Elite Options Alert; it’s very different from most of his advisories since it’s not about predicting a particular stock will go up.
In any case, while I don’t know Ian King personally, and there’s no guarantee you’ll profit from his recommendations, he does appear to be a legitimate expert based on what I’ve seen.
Is Profit Framing Legit?
Profit Framing is legitimate because it’s just an options trading strategy that professional traders already use when you boil it down, credit spreads. Ian King has put a new name on it, and perhaps puts his twist on things, but as he points out himself, the strategy isn’t new:
“Profit Framing has been handed down, from professional trader to professional trader, for decades.”
What about Elite Options Alert?
I haven’t joined this service myself, but I don’t believe it’s a scam. Why? Mostly because Ian King is a genuine trading expert and the company behind it, Banyan Hill Publishing, is a real Baltimore-based publishing company that sells over a dozen advisories.
They’ve been around for quite a few years, too. So I doubt they’d be scamming people, or they’d end up getting shut down.
With all that said, just because I believe it’s legit doesn’t mean you’re guaranteed to make money by following Ian King’s “Profit Framing” recommendations as a subscriber of Elite Options Alert.
All investments carry risk, and trading options can be even riskier given the added complexity and leverage aspects. That doesn’t mean you shouldn’t learn about it if you want to. Many successful options traders started as beginners. But I did think it was worth mentioning that it’s possible you could lose money with Elite Options Alert, as with any advisory service.
Bottom Line: Should You Join?
Whether or not you should join Elite Options Alert to access Ian King’s “Profit Framing” recommendations is something only you can decide. For the most part, how suitable the service will be for you will come down to your trading preference and goals.
On the one hand, if you want to learn how to trade the market in a relatively “neutral” way while also potentially making decent overall returns, it could be worth a look.
The strategy the service uses may be more complicated than Ian King’s other advisories, but you get access to training materials aimed at helping you learn the strategy and regular trade ideas, which you can follow using your own trading account.
Generally speaking, credit spread options strategies are seen as more “conservative,” too. So once you get a handle on things, it could be a good alternative if you don’t want to rely on a stock’s price going up in the future to make a profit.
On the other hand, there are risks involved, and Ian King suggests starting with at least $10,000, and the advisory costs almost $3,000. So, at the very least, you’d need a decent bankroll to get started, and there’s a chance you could lose that money, too.
Hopefully, that doesn’t happen. But nobody can predict the future, so it’s up to you to decide what you’re comfortable with at the end of the day.
What do you think? Is Ian King’s Profit Framing strategy worth giving a go? Or would you rather keep it simple and buy shares in companies you like? Let us know in the comments!
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