The Principles of Trading with
WiseReport Spread Options

• WiseReport Spread Options is released a minimum of once a week. The release will not necessarily happen on the same weekday every week, since it is largely dictated by the market.
• Additional issues of WiseReport Spread Options may be released, if opportunities arise later in the same week.
• WiseReport does NOT provide personalised trading advice to members via phone or e-mail.

Simplicity

We have endeavoured to make this service as simple as possible. Each recommendation contains the following elements: Trade Overview, Trade Entry, Max. Risk, Profit Target & Volatility Information.

Trade Entry

Provides all the relevant details for placing the trade. Of special note in this section is the timing of entry. We will always provide ON DAILY CLOSE as part of our entry criteria. This entry criteria is critical to the success of the trade, under NO circumstances try to pre-empt this trading trigger. The trading trigger is subject to adjustment. If adjustment occurs, advice will be given in following issues.

Options prices are quoted as at the close of business the previous session. Options prices may differ at the time of execution, as the market moves up to the trigger point. You may have to adjust the credit, to ensure you get filled on the night/day.

Risk Management

WiseReport Spread Options is concentrating on Spreads, which have a built-in stop-loss. The maximum risk is the difference between the chosen strikes, minus the credit you receive for the spread. The risk profile of all trades is based on 2.5% of a nominal $100,000 account, i.e. approximately $2500 is the max risk on any particular trade. The number of contracts taken is dictated by the level of risk. If your account is less than $100,000, you need to adjust the number of contracts according to your account size.

Trade Suspensions

A trade may be suspended, if price - prior to triggering an entry - falls to such a low level, that no strike prices are available to construct a spread. This does not mean the trade is canceled, and the trade may be reactivated as price recovers.

About Closing and Reversing

If a Spread Options trade does not perform as forecast, a close and reverse strategy may be employed.

For further inquiries please contact Paul Wise.

Email wisereport@options21.com.au
Phone: +61 8 9307 8261
Freecall (Australia): 1800 667 710.