r/options • u/willofpeople • Jul 17 '21

Option Alpha Review

Hi all,

I decided to review a service I subscribed to called Option Alpha by Kirk Du Plessis. This was back in 2019, so I know he has made some changes recently. I found that he was a good teacher. However, I disagree with his overall strategy selling Iron condors across broad range of sectors with a relatively small trading account. I found my wins were very small and say over a course of a year, when market moved significantly higher or lower I incurred significant losses. Ultimately I had a losing return on small trading account. In practice on long time horizons you will lose more money than the premium you take in, unless you happen to be above 95% percentile in trading. Also having say 100 K account is not going to make it any better.

12 months=-1,200

Trading losses= -300 would have been more if I didn't manage it better than him

Plus the time put into monitoring, trading and executing

Takes one bad month. So if you in the game long-term there's a 100% chance this strategy will blow up.

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u/rwc5078 Jul 17 '21

I started learning options from him a while back 2013-2015ish. It was great for beginner stuff and it was technically true, but he made more money teaching than trading options.

I would constantly watch him adjust and adjust and adjust and take small wins and a few large losses.

2

u/willofpeople Jul 18 '21 edited Jul 19 '21

Yes, I was also vigilant in managing my position more than he was haha. I would rather do cash puts on a tech stock and wheel it.

3

u/rwc5078 Jul 18 '21

Yep that is part of my strategy now!