So I’ve had a lot of requests for this company called Steady Options so I try to look up their Youtube channel and I don’t think this is them, with 900 subscribers. So I went ahead and did a search and found their website and I think I’ve been here before. Non-directional strategies, long investors, footwriting, spreads, futures. This is probably the one that interests me the most: iron condors, calendars, butterflies. These are all old-school, old-school, old-school. I’m not sure what that is. I mean, I understand, I know what those symbols are but I don’t know what that trade is. So one of the best times to enter; sounds like it’s directional. Maybe it is based on volatility, an iv rank, like Tastytrade. Back-testing that’s interesting, adjustments. I wonder if they have black and white rules or whether they’re subjective, you know. 123% a year that’s probably got to be taking some kind of risk. It might be too much.
How do I even get involved? Oh, it says sign up right here. No, that’s just for–to get on the mailing list it looks like. So, the options education, this is all free stuff which is. Looks like it’s pretty good like a pretty good library, I think. I don’t know if it’s free or not. Let’s see. Is there any way–how do these guys make money? Subscribe.
Oh here we go, non-directional strategies. So, we’ve got 5 different ways to get involved. Of course, the non-directional stuff is what I like. That’s what I do. Hedge portfolio, interesting. I have a pretty good hedge that nobody else uses or knows about. It doesn’t cost anything overall in the long term. Let’s see, selling puts collateralized puts. Spreads, you know, that’s simple stuff. Futures I don’t really like to get involved with too much. This is the one I kind of like. There’s a free trial, $147, and they recognize me for my paypal account. Well, let’s go ahead and jump in.
Okay now that I’m behind the paywall, what is Steady Options? And the first thing that comes to mind is that I’ve heard of them before and I think that’s because they’ve been around for a long time. In fact, it looks like since 2012 and the founder and chief trader is Kim Clayman from Toronto, Canada. He started trading options around 2002 and became known because he was writing articles for Seeking Alpha.
In this review, I will follow Kim’s alerts. The website also has the performance area where I mentioned that there’s five different portfolios being offered. And I chose the one called Steady Options because that’s what is described as a delta neutral strategy. That’s how I trade my own capital, so this is the obvious choice for me.
Now, the results of the trading system are very high which automatically makes me skeptical. And the results show 123% annualized return. Once I’ve verified my Paypal account through an email communication with the administrator, I was able to get an introduction email. And the email laid out where the trades are posted, where the trades are discussed, and where unofficial new ideas are discussed, and how to get alerts. And I thought this was very clear and concise and it was just what I was looking for so I did like that.
The first thing I did was get on the forum and try to get the alerts and I use a software to track the trades. And today is November 9, 2021 and at the time there were 4 open trades, and again, I’m tracking kim specifically and there was 1 adjusted trade. So I just added the 4 open trades on my software. Now, remember the results of the system according to the website 123% a year, so I’m interested to see how the returns come out. And as many times as I’ve found big claims but when I actually follow the trades the returns are not even close to what I was promised. And in fact, they actually lose money.
One thing that I did like right away was I saw money management being deployed as kim makes recommended trades based on having a $10,000 account size. This indicates to me that these guys are actually trading their own money right besides their students. And this is rare; even though you would think all the services do this but they really don’t.
Now after looking more closely at the open positions, I see that there are multiple leg positions. So again, I’m going to use a software to track them. I’m going to use OptionNET Explorer.
And if you’re interested in a robust back-test and position-tracking software, I highly recommend OptionNET Explorer. If you’re interested in acquiring the software, it’s a subscription and I have a link in the description for my review and a 10% off discount for that.
Now as I added one of the trades to OptionNET Explorer, I noticed the trades are specific to earnings and that there are trade structures and strategies that I have not seen in a long time.
Back in 2014 and maybe into 15, I did focus on these types of trade structures, you know, ones that took advantage of the volatility going into earnings. And this particular trade structure, the way it was set up, is kind of new to me. So I think maybe I might actually learn something here which is pretty exciting actually.
It’s been a long time, I mean, I haven’t said anything about a course of learning actually learning something new since I took Ron Bertino’s course. The structure involves different expiration cycles and–I call them time trades. Now, time trade is a combination of options within different expiration cycles. You know a calendar would be an example of a time trade. After a lot of analysis a few years ago, I gave up on time trades. I typically don’t like time trades because the expiration line morphs unpredictably because different expiration cycles can have totally different personalities or implied volatility. So this is going to be interesting to see how this trade acts during and around earnings and I want to see if there is an edge.
I later went into the blog library. There’s a lot of information there and the topics are extensive regarding options and other issues. And one of the sections is about fake gurus and how to spot them, and I’ve read a few posts and they’re all interesting and good reads.
Now navigating the website to find the alerts took a little bit of time to figure out. Once I decided to follow the main trader, Kim, I could see his posts of open positions. And he had a couple of options expired worthless and I was expecting to see some type of alert telling me what to do. And I figured out that Kim does not post every update to his open positions but if I press a link on that specific position it allows me to follow this specific trade by getting an email whenever an update is made. So every time Kim opens a new position I’m sure to mark it as a follower for the updates.
Now after reading through the website and forum for a few hours, I see a lot of excellent content. I also see a lot of the trades that are what I call old school trades, except for this one. Kim also mentioned a book called The Volatility Edge in Options Trading. And I have not read that book so I did order it and so far my takeaway is that I might learn just one thing that I did not know before. And if it is valuable, then the course is definitely worth the price of admission. I will do more research on that trade structure to see its viability.
Now, I believe these guys are legit as far as caring about their subscribers and doing their best to provide value. As far as the trade structures, they’re using… I’m not saying they have a lot that is different except for that one trade structure. I’m going to focus in on that different trade and see what I can come up with. I’ve looked over the guidelines on it and so far all I’ve found are just general guidelines. And my goal is to put that trade into black and white rules and back test it and I’ll put some time into this and give an update on one of my next videos.
Now just because I discovered a new potential trade structure that looks promising, I’m not going to just give these guys a free pass. I will still evaluate their alert service performance. It’s probably best to follow the trades on Twitter or some other way than the form, because in order to properly track his trades I have to manually look at Kim’s positions every day. And when I see a position gone I need to try and track down what happened because it was not in my email even though I did sign up to follow that trade. Which means I should have received an email on the close of that but the process to track trades through the forum and emails is cumbersome.
First, I need to look at Kim’s open trades; then I need to run a report on my software; then I need to go buy them one by one to make sure they’re matching; and if Kim does not show a position that I still have open then I need to go back through the form, find that trade, follow that thread to see what the closing price was, and then go back into my software to close the trade. This is really a lot harder to follow than most other alert services. Now there may be some other better way to do it, I just haven’t figured that out.
Now I initially was excited to see a new and different trade structure here, and I thought this service has a lot to offer but as I learn more and realize that outside of this potential trade structure I don’t see a whole lot to offer. But it’s still early in my review and I do believe that Kim and his mods are not trying to deceive people like most services do. So they do have that going for them. But again, they do show extremely high returns for the results of their trading history which is hard to prove or disprove. All I can do is follow their head trader in real-time and see what happens.
Now, Kim does not generate all his trades from his own ideas. A lot of his trades are the ones that he takes from his moderators and it looks like he picks and chooses which trades he wants to use or apply. And he does not deploy all of his moderators’ plays. Also I should note that I direct messaged Kim and he was very responsive to my questions and seems like someone that wanted to help. Now stay tuned for my next video as I will continue to research this different trade structure and track Kim’s trades.
If you’re a trader looking for trading consistency, if you keep changing your approach looking to add one more rule that will get you over the top I’m going to help you for free. Stay with me for the next minute or so.
Now who am I to make this claim, my name is Karl Domm, Karl with a ‘K’, and it took me over 20 years to finally succeed to become a profitable options trader. I did that around 2015 and I have publicly proven to be a profitable trader since I started sharing my P&L on my Youtube channel in May of 2019. Now my larger options trading account started with $110,000 and now is worth over $165,000 and I’m the only Youtube instructor that shares my daily P&L proving that I am a profitable options trader.
Now I’ve asked many other instructors to share their P&L, but they don’t because they can’t because they actually lose money trading and I’m frustrated with the lies being told. If you’ve ever taken an online trading course I’m 99% sure that you’re frustrated and that you’ve lost money following these instructors. And you already know that they don’t share their P&L.
Now as far as trading myself, I just happen to have a passion for options trading and I spent over 27 years learning and trading. And I’m not necessarily interested in the technical aspects of options from a scholastic point of view. I’ve been passionate about the most efficient way options can make me money and this is my calling in life; as corny as that sounds. And I’ve even written a book on the subject; even though I hate writing. For some reason trading ideas just flow into my head all the time and I take those ideas and I spend hours and hours back-testing them.
In 2017, I discovered a great course which taught me a specific trade structure which I’ve been able to mold and create specific rules around and capitalize on, but the problem is that it requires a special margin account and a lot of capital to be traded. So I set out to duplicate this trade structure in a way that could be done in a small account. And after back testing over 300 ideas, one of the trades I developed was a trade that I call The 2060.
This is a proprietary trade I developed almost from scratch. I initially created the course to sell it and I wanted to compete with these other Youtubers that were frustrating me with their fake claims. But what I’ve decided is I want to do what it takes to expose those Youtube fake gurus, and if I can offer something for free that is vastly superior to their paid products maybe I could put a debt in their business. Which in effect would be using my talents to help people.
Because of this, I’m currently providing The 2060 course at no cost. And this is a full course. It’s not a worthless free report or some piece of useless non-actionable information. This is a full course with black and white rules. Rules that you can use to take action and learn how profitable options traders trade. This course is worth $495, but I’m giving it away today for free. See the link in the description to sign up for the course.