Frequently Asked Questions

Overview
Q:How does the 7-Minute Options newsletter work?
Q:Will I really receive a new trade idea every week?
Q:How many trades does 7-Minute Options have on at any given time?
Q:Is it always just one trade a week?
Getting Started
Q:How do I receive the 7-Minute Options newsletters via e-mail?
Q:How much money do I need to trade?
Q:How much should I invest in this?
Q:What brokerage should I use?
Q:What level of option trading approval do I need?
Q:Can I get help placing the trade?
Q:What does "at or near" mean when placing trades?
Terminology
Q:What does "long option" mean?
Q:What is a covered call option?
Q:What is an option debit spread?
The Trades
Q:How do I know which stock, ETF or covered call option to trade?
Q:If I miss the newsletter the day it is sent out, can I enter the trade the following day?
Q:What day of the week do you typically ENTER the new weekly trade?
Q:What day of the week do you typically EXIT the new weekly trade?
Q:What time of the day do you typically send the newsletter e-mails?
Q:What if I am not being filled at the prices you submitted your trade at?
Performance
Q:I am interested in the 7-Minute Options, but I have a question about your track record. Are all of the trades listed real trades, and are the individual trade returns annualized?
Q:How much can I make?
Q:How much can I lose?
Time Commitment
Q:Do I have to watch intraday market movement? In other words, do I have to keep track of what is going on in the market all day long?
Q:Do you offer this as an auto-trade?
Q:Do you offer text alerts when you send out e-mails?
Getting Help
Q:Can I get help understanding more of what the 7-Minute Options is doing?
Q:How easy it is to get help and support from you?
Q:What if I refer somebody to you?
Q:May I change my username and password for 7-MinuteOptions.com?
Legal
Q:Is 7-Minute Options an investment advisor?

Q: How does the 7-Minute Options newsletter work?

The 7-Minute Options is a newsletter that highlights trades utilizing basic options on stocks and exchange-traded funds (ETFs). The newsletter is published several times per week and is disseminated via e-mail and online archive.

Please ensure that newsletters from support@7minuteoptions.com are not going to your spam/junk folder. If you miss an e-mail, you may always log into 7MinuteOptions.com and click on the "Newsletters" section to see the most recent and archived newsletters.

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Q: Will I really receive a new trade idea every week?

The goal of the 7-Minute Options newsletter is to provide a new trade every week. However, we will never "force" a trade. If we do not find a trade that we are very confident about, then we prefer to skip a trade that particular week. Historically, we have not skipped more than 4-6 weeks per year.

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Q: How many trades does 7-Minute Options have on at any given time?

The 7-Minute Options will typically have several trades live at the same time. Most trades will last just 2-6 weeks in duration, so we anticipate having 5-15 live trades on at any given time. You may check the "Trades" section of the website to determine if you are still able to get into an already live trade.

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Q: Is it always just one trade a week?

Yes, it is, but we may enter a trade via 1/2 positions over the course of two different days, depending on market conditions and opportunity. We may also make adjustments once a trade is live.

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Q: How do I receive the 7-Minute Options newsletters via e-mail?

We automatically send e-mails to the e-mail address that you provided during your registration process. The e-mails are sent from newsletter@7minuteoptions.com, so please add that e-mail address to your "Safe Sender" or contact list to avoid the newsletters accidentally going into your Spam or Junk E-mail folders.

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Q: How much money do I need to trade?

While the minimum needed to do most trades will be under $500, we recommend trading at least a $2,000 account so that you may participate in multiple trades simultaneously. The trades in the 7-Minute Options newsletter are meant for the non-conservative, shorter timeframe portion of investors' portfolios.

In order to trade options, you will need approval from your broker. Simply request Level 3 options trading authorization. The easiest way to be approved is to make a telephone call to your broker and let them know that you would like to "trade long calls, long puts and debit spreads on stocks and exchange-traded funds."

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Q: How much should I invest in this?

There are several factors to take into account when deciding how much of your money to invest in this strategy, such as risk tolerance, account size, other investments, etc. We encourage you to obtain personal advice from your professional investment advisor.

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Q: What brokerage should I use?

Most brokerages will allow you to do the trades that we do in 7-Minute Options. We are not allowed to recommend a brokerage. Just confirm with the brokerage that you choose that you are able to and approved to trade 1) long calls and puts and 2) debit spreads on stocks and ETFs.

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Q: What level of option trading approval do I need?

ypically, you need Level 3 options trading approval to do the option trades in the U.S.. In Canada, you will likely need Level 3, but it varies by brokerage. Check with your brokerage before placing any live trades.

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Q: Can I get help placing the trade?

Please contact your financial advisor or broker to get assistance in placing a trade. Neither 7-Minute Options nor its parent company, Global Investor Services, Inc., are Registered Investment Advisors or Broker-Dealers. You have unlimited support through the 7-Minute Options, but to actually have help placing the trade, you should call your brokerage to ensure that you get a trade placed correctly.

To help you, each 7-Minute Options newsletter will include a sample "Order Placement" screenshot so that you may mirror the trade order at your particular broker. We make the entire trading process as simple and efficient as possible.

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Q: What does "at or near" mean when placing trades?

When we place an "at or near" order, we are suggesting that we are willing to pay close to (i.e., at or near) the price listed. In contrast, if we set a strict limit order, then that is suggesting we will only track the trade if it hits our price exactly.

We tend to place many of our trades when the markets are closed, which makes trading the 7-Minute Option trade ideas much easier for most members. However, when the market is closed, we do not know exactly what price our trade idea will open at the next morning.

Sometimes the opening price gaps a bit higher (which is a bullish signal). In that case, if you held out for exactly the price listed and did not use our "at or near" guideline, then you would not have been triggered into the trade.

How strict do you want to be about your entry? It is a judgment call that you have to make.

Let's use fictitious call option on ABC, currently trading at $4.00 per contract. Based on our analysis, we set a price target of $5.00. Based on a desired entry of "at or near today's closing price: 4.00," that would translate into roughly $1.00 per contract in potential profit (i.e., a +25% return). However, the underlying stock gaps up a bit the next day, so the call option also gaps up to $4.10 per contract. Should we still enter the trade?

Does it matter if you pay 0.10 cents (or 2.5%) more at the open? That would reduce your potential reward from 1.00 to 0.90 per contract, or from a potential +25% to +22.5%. You have to make that judgment call, but we would likely determine it was worth it and would not cancel the trade idea. We always post and e-mail a newsletter update if we decide to cancel a trade idea; otherwise, it is always still considered live.

Let's consider another example, this time for a lower-priced option debit spread using a short-term trading strategy. Assume we want to buy a $5.00 debit spread on fictitious ABC stock "at or near" its closing spread price of $4.00. We are looking to make a quick 25% profit, i.e. a $1.00 profit on the $4.00 debit invested.

If the XYZ stock gaps up like ABC above did and the spread opens $0.50 higher, is that still "at or near" $4.00. Yes, from a pure dollar amount, but the spread option's potential profit has now been lowered considerably: $0.50 potential profit / $4.50 debit = +11.1% -- over half of our potential gain has been eaten away. Since this is a short-term trade with a smaller profit potential, the smart trader would skip the trade at this point.

We hope that the above helps. Experience with trading will help you make sound judgment calls. If you are ever not sure, please drop us an e-mail to support@7minuteoptions.com and see what we are thinking.

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Q: What does "long option" mean?

The buying of either a call or put option contract, with the expectation that the underlying stock/ETF will go up or down in value, respectively.

Buying a call (or put) option contract from an options writer entitles you the right, but not the obligation, to buy (or sell) a specific commodity or asset for a specified amount (the "strike price") by a specified date (the "expiration date").

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Q: What is a covered call option?

Also known as a "buy-write." An options strategy whereby an investor holds a long position in a stock/ETF and writes (sells) call options on that same stock/ETF in an attempt to generate increased income from owning the stock/ETF.

A covered call trading strategy is typically used when we have a long-term bullish, but a short-term neutral-to-bullish view of a stock/ETF. So, we buy the stock/ETF looking for longer-term appreciation, but simultaneously have a short position via the call option to generate income from the option premium received.

Let's look at an example of a covered call. Let's assume that you have researched the fictitious company XYZ, which is currently trading at $34. You believe that the stock could appreciate to $40 per share, but is currently running out of steam after a nice move upward. In the short-term, you believe that the stock will trade relatively flat, likely within a few dollars of its current price of $34. If you sell a call option on XYZ at a $35 strike price, then you earn the premium from the call option sale, but also cap your upside potential until the option expires. So, one of the following three scenarios is going to happen:

1. XYZ shares trade flat (below the $35 strike price): The call option you sold will expire worthless and you keep the premium from the option. In this case, by using the "buy-write" strategy, you successfully outperformed the "buy and hold" stock performance during the time that the covered call was in place.

2. XYZ shares fall below the current $34 price: The call option sold expires worthless, you keep the premium, and – again – you outperform the "buy and hold" stock performance during the time that the covered call was in place. You may have still had a loss, but you lost less (because of the premium received).

3. XYZ shares rise above $35: The option is exercised. Your upside is capped at $35, plus the option premium received. In this case, if the stock price goes higher than $35 plus the premium, then your buy-write strategy has underperformed the XYZ shares. However, you still made a nice profit.

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Q: What is an option debit spread?

An option debit spread is a trade that involves two options with different strike prices and/or different expiration dates that an investor trades on the same underlying stock/ETF. The higher priced option is purchased and the lower premium option is simultaneously sold. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.

For example, assume that you are moderately bullish on fictitious stock XYZ. So, you purchase a call option on XYZ for a $3.00 debit. If you were very bullish on XYZ, then you would just buy the call option. However, as stated, you are moderately bullish, so you hedge your trade a bit by simultaneously selling a higher strike call option and receive $0.50 credit. The net debit is now 3.00 - 0.50 = 2.50. By utilizing a debit spread, your investment in the long call – and the risk of losing the entire premium paid for it – is reduced or hedged.

Although there is an initial debit on the transaction, the investor believes that there will be a significant change in the price of the underlying security to the upside, making the purchased option more valuable in the future.

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Q: How do I know which stock, ETF or covered call option to trade?

We always put the exact details of every trade we place, which includes prices for stocks/ETFs, plus strike prices and expiration dates for covered call options.

Also, each 7-Minute Options newsletter will include a sample "Order Placement" screenshot so that you may mirror the trade order at your particular broker. We make the entire trading process as simple and efficient as possible.

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Q: If I miss the newsletter the day it is sent out, can I enter the trade the following day?

Each newsletter sent is immediately archived in the "Newsletter" section of the website. So, check there for all of the trade details.

Typically, the order is considered live for the week that it is posted. For example, if a new trade is posted on Monday, then it can still be entered at the parameters specified until that Friday. However, any trade posted on a Friday is only good for that day unless we specifically "renew" the trade idea the next week.

The best practice is to determine whether you may still enter a trade is to check the "Trades" section of the website. We will post there whether you may still enter any of the live trades or ideas.

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Q: What day of the week do you typically ENTER the new weekly trade?

The day of the week will vary since we will be attempting to enter trades at the optimal price. We will often use stop-limit orders to enter new positions so that you do not have to monitor the trade entry all day long.

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Q: What day of the week do you typically EXIT the new weekly trade?

The day of the week will vary since we will be attempting to exit trades at the optimal price. We will often use stop orders to exit positions so that you do not have to monitor the trade exit all day long.

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Q: What time of the day do you typically send the newsletter e-mails?

That varies, but we try to get the trade idea out as early as possible after the market closes at 4 p.m. Eastern Time. Occasionally, we will do a trade during market hours (9:30 a.m. to 4 p.m. Eastern Time).

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Q: What if I am not being filled at the prices you submitted your trade at?

You have the freedom to adjust your price to get filled if you think it is still a good trade. Make sure that you pay attention to the risk/reward dynamic. Just don’t chase the price if you are not getting filled at or very near our desired entry price!

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Q: I am interested in the 7-Minute Options, but I have a question about your track record. Are all of the trades listed real trades, and are the individual trade returns annualized?

All of the trades listed are real trades that were placed live in the market. The individual trade performance listed is not annualized. We agree with the Securities and Exchange Commission (the "SEC") that annualizing the performance of a short-term trade could be misleading. While we are very proud of our track record, past performance does not guarantee future performance results.

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Q: How much can I make?

Our goal with the strategies implemented in 7-Minute Options is to beat the market by 20% or more every year, while keeping risks reasonable. Statistically, we know that we will have losses, which will offset the gains that we make. While past performance is not predictive of future performance, we are proud of our market-beating and mutual fund- crushing returns so far with the strategies that we use in 7-Minute Options.

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Q: How much can I lose?

The trades that we utilize in 7-Minute Options will likely have larger gains and losses that you are used to. It is not uncommon for us to gain or lose 40% or more on trades.

For some perspective, in 2011, we had winning trades 64% of the time and losing trades 36% of the time. Our winning trades averaged a +56.8% return and our losing trades averaged a –45.6% return. The net result is an average return per trade in 2011 of =20.0%. That is fantastic considering our average trade lasted just six weeks in length.

We do everything we can to prevent large losses, but statistically they occur about one-third of the time. This is why it is important that every trader use proper money and portfolio management and never "load the boat."

It is all about the numbers. The 7-Minute Options program is not a silver bullet or a "get-rich quick" scheme. However, if you our successful trading strategies continue (even half as well as they have in the past), then 7-Minute Options should be able to handedly outperform the markets and mutual funds.

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Q: Do I have to watch intraday market movement? In other words, do I have to keep track of what is going on in the market all day long?

No, you do not. We monitor the market all day, every day for you, and e-mail/post newsletter updates as needed. Most often, we will send the new trade idea to subscribers after the market has closed. Occasionally, we will do a trade during market hours (9:30 a.m. to 4 p.m. Eastern Time).

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Q: Do you offer this as an auto-trade?

We do not offer auto-trading at this time, but are researching the possibility.

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Q: Do you offer text alerts when you send out e-mails?

We are currently in the testing phase of this convenient feature.

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Q: Can I get help understanding more of what the 7-Minute Options is doing?

Of course, you can. We highly suggest watching the four (4) tutorial videos that we have created for your benefit. Once you are logged into the 7-Minute Options website, simply go to the "Training" section – the videos are located there for viewing at any time. If you still have questions after that, then please e-mail us at support@7minuteoptions.com.

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Q: How easy it is to get help and support from you?

It is very easy…just e-mail us at support@7minuteoptions.com.

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Q: What if I refer somebody to you?

We offer you a free month of service (a $49.95 value) for every person you refer to us who becomes a paying member. Have your friend/colleague mention your name when they are signing up. You may want to send an e-mail to us at support@7minuteoptions.com as well in case your friend/colleague forgets to mention your name. You will receive credit for one free month of service after each person you referred has paid for his or her first month of service in full (without cancellation).

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Q: May I change my username and password for 7-MinuteOptions.com?

Yes, you may. Simply send an e-mail to support@7minuteoptions.com with your request. Include your current username and password. Also, include the new username and password that you would like. You must send your e-mail from the e-mail address that we have on record for you.

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Q: Is 7-Minute Options an investment advisor?

Neither the 7-Minute Options nor its parent company, Global Investor Services, Inc. (referred to collectively as "7-Minute Options" or "we" or "us" or "our") are registered as an investment adviser. The 7-Minute Options relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, the 7-Minute Options does not offer or provide personalized advice. We publish information about markets in which we believe our readers may be interested and this information reflects our sincere opinions.

The information that we provide or that is derived from our website and or services is not intended to be, and should not be construed in any manner whatsoever as, personalized advice. In addition, our website and or services and the information provided by us should not be construed by any subscriber or prospective subscriber as the 7-Minute Options' solicitation to effect, or attempt to effect, any transaction in a security.

Investments in the securities markets, and especially in options, are speculative and involve substantial risk. The information that we provide or that is derived from our website and or services should not be a substitute for advice from an investment professional.

We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from the 7-Minute Options or derive from our website and or services. Only you can determine what level of risk is appropriate for you.

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