Us vs. Them

How WiseOptions® reported returns differ from how other publications report their returns:

  1. We only report results for suggestions that were actually filled – not hypothetically.  After all, getting filled is what counts and you can’t get worse fills because our suggestions are based on ‘limit price’ and when filled are confirmed by ‘autotrade’ brokers.  Many other advisory services will base their results on hypothetical or unrealistic prices, such as best possible price.
  2. We report results based on the suggested ‘limit price’. We realize that some of our suggestions may get filled at a better price than suggested, which will result in a better return for some, but we choose to report results based on the ‘limit price’ which reflects the “worst case scenario”.  It also ensures that those who are not on Auto Service can also realistically get filled.
  3. We include the “cost of doing business” which happens to be brokerage costs associated with trading.  Brokerage costs, such as commissions, can make a big difference to the dollar amount and percentage return reflected in your brokerage account.
  4. We show EVERY result – not just a selection of results. We show the good – the bad – and the ugly.
The comparisons given below will show just how different we report our results vs. how other advisory services report their results.  The difference can be substantial.

Comparison #1: Reporting based on suggested limit price vs. actual fill price

Assuming that on June 10, 2015 we made a credit-spread suggestion on the NDX for a net price (limit price) of $1.50.  Lets also assume that the suggestion was filled @ $1.64.

Based on 10 contracts

Limit price of $1.50 (worst case scenario, what we report)

Actual fill price of $1.64

Difference from our reporting

Received per contract

$150

$164

9.3%

% return

6%

6.6%

10%

Difference between limit price and actual fill price

$1,500

$1,640

$140

Comparison #2: Reporting including commission costs vs. no commission costs

Let’s say you want to spend $1,000 on one options trade.  The number of contracts you will be able to trade is determined by the price of the option.  You get a suggestion to buy an option on XYZ stock for $0.50 per share.  The option price goes up in 2 days to $0.55 (a 10% increase) and you get a suggestion to sell it.

Based on 20 contracts

Including commission costs of $1.50 per contract

No commission costs

Difference from our reporting

Purchase price

20 x 50 + 30 = $1,030

20 x 50 = $1,000

$30

Selling price

20 x 55 – 30 = $1,070

20 x 55 = $1,100

$30

Overall Difference

$40

$100

$60

Reported gain

4%

10%

150%

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