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Chip Caldwell - Option Alpha Review (3 Month Results)

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http://optionalpha.com - Here's an option alpha review that was sent into us, edited, uncut, raw. Transcript is as follows: "Hello. My name is Chip Caldwell. I’m the chairman and founder of Caldwell Butler Healthcare Operations Research Firm. As an entrepreneur, I have started and sold three companies. As an investor for the past 10 years, part of my investment approach has been options. During that past 10 years, I have used three different coaches and all of those coaches, I lost and in some cases, lost big. About six months ago, I discovered Kirk Du Plessis and the Option Alpha approach and a couple of things struck me right off the bat which is why I became a life elite member six months ago which I encourage you to do. As you see my results, I think they’ve been good. But when I review or look back over the last three coaches that I had, what Kirk’s research kind of hit me with is that all of those approaches were based upon picking winners, various ways of doing it and they were successful at picking winners, but there are always losses and consequently, those losses were huge, enough so that they offset any of the small wins. What struck me with not only Kirk’s method being research-based is one of the findings of that research which is available to read. I’ve read it several times or parts of it several times. It’s that the secret to winning is not picking the winners. It’s managing the losses that out of every 10 trades, seven are going to be winners or for 70%, but those winnings are going to be small. That leaves three losses or 30%, but those losses can be huge. Well, Kirk’s unique approach (I don’t have time to get into that. It can get fairly involved.) is to manage those losses. Well, that’s worked for me. Let me share my last three month’s experience. I allocated here initially $60,000 to the options accounts that I follow Kirk’s method and I intend to increase that to $800,000 over the next 12 months after I learn a little more. So far in these past three months, I have had at risk, $44,000 and my return on investment has been around $1,000, so do the math. In three months, that’s a 9% ROI. It’s better than any of my other investments, even real estates, doing better than all of them. How did they break up? In the last three months, I have made 118 trades that contained 321 legs, so mostly iron butterflies, iron condors, I didn’t do percentages on those, a few verticals, almost all credit spreads, maybe a couple of debit spreads here or there, certainly Delta neutral approach. And so, of those 118 trades, 70% have been winners and the average win has been $321 and my losses had been 30%. I mean, right in line with Kirk’s research. And my average losses have been (let me look here) $523. It doesn’t take a rocket-scientist with those two numbers to figure out that I’m left with a profit. That’s been my experience. If I were to give you any recommendations, it would be to join as a life elite member. I did. It’s a small investment. It’s a good investment. It’s obviously tax deductible. But if you prefer to start at a lesser level, then do that. Take the time to watch Kirk’s videos. There are a lot of them. They’re on the website. Don’t try to watch them all at once like drinking out of a fire hose. I did that the first time and I went back and I couldn’t remember much of it. Take your time, write some notes, enter a few trades, internalize what you do that maybe different, it has some interesting wrinkles and then watch them again. Participate in the website, listen to the podcast. I walk my dog every morning and I listen to an Option Alpha podcast. Every morning, I listen to all of them at least once, many of them twice. I’m going to have to go back today as soon as I finish this video and study going inverted. I’ve only done that a few times and I want to make sure that I’m cognizant of all the risks of doing it because one of my positions on my iron butterflies is in a losing position to a point that I need to adjust and that will put me into an inverted position. Those are my recommendations. The elite member forum is very active. You can post questions to your colleagues and get responses. You can respond to others. You can go back and read. I’ve done that for three years of past postings. I learned a lot. I hope to see you soon in one of the forums. I hope my thoughts have been helpful."
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Text Comments (10)
rstallings69 (2 months ago)
ok Chip thanks for review- obviously you are new to his system- and thanks for review- a few points and questions i would like to make- the s and p was up 6% over that 3 months- did that include commissions and what rates were you paying? is a 9% annualized return worth all the work? and think u have to factor out the subscription fees as well- dont get me wrong i am a huge fan of option alpha but havemt subscribed except to the IV rankings
ragedmaximus (2 months ago)
its a great testimony, so at 299 month elite membership cost he has a 1 dollar profit to show for his 1000 gain. hope to see the next testimony in a few months
Joe George (2 months ago)
Chip thank you for sharing. I went thru tasty trade, options animal and OA. OA is my go to source for what i call my background engine of options trades. 41 day TTE, sell if i get 50% profit - adjust or cut at 21 days, spread the underlyings around between energy, home builders, technology, etc. On the rare occasion i see Asia indices moving big 8 PM EST, and US doing the same at 8 AM - then I long a FAANG ITM call 1 week out for a scalp. I know it goes against the options philosophy and it's a rare set-up but when it goes man does it go. everything has to be going up like a Saturn V for it to work. good luck to you and safe trading.
GD (2 months ago)
He will be tested in Feb 2018 like environment where the stock price movements are going to be violent. Those days will make or break him as a trader. It will be interesting to see how he psychologically responds to most positions gone against him and that too significantly.
1roxtube (2 months ago)
Can you tell me what coaching programs you lost most with so I don't make the same mistakes?
The Fuzz (2 months ago)
Correct me if I'm wrong., but his numbers are off and I calculate substantially better results.
Gowtham Natarajan (2 months ago)
How is the membership payment tax deductible?
BocaDelCielo Playa (2 months ago)
i just got unlimited data on my phone, now i can listen to the daily podcast while going for my morning walk. Cheers.
Daniel Penchev (2 months ago)
Amazing talk
apfelsnutz (2 months ago)
Thanks for your time and input...

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