The Trade of the Day (TOTD) Newsletter recommends option trades on stocks that is based on a proprietary directional strategy that leverages technical, fundamental and quantitative analysis. This strategy is the same strategy that is used for the DAC Service. The TOTD Newsletter is for self-managed clients that would like to start off with the most inexpensive option offered by MCTO.
At the beginning of the week a list of candidate trades is emailed to clients along with bullish and bearish trigger prices. When trades are triggered throughout the week an email or text message is sent out to all TOTD clients. Some weeks will have fewer trades if our scanners are not able to identify enough high probability trades for that week.
Each recommended option trade is either bullish or bearish, and comprises an in-the-money long debit call or put, and is typically open for 4 to 28 days. The bullish trades are on fundamentally strong companies with bullish technical setups, and the bearish trades are on fundamentally weak companies with bearish technical setups. Each trade comes with recommended entry prices and corresponding stop loss levels.
We recommend allocating no more than 5% of one’s speculative portfolio to each trade. As a data point, the DAC Team allocates 4% of our client’s portfolio to each trade. This will keep your trading in-line with the risk-to-reward ratio that these trades are optimized for. With this said, this product is designed to ultimately give you complete control of making your own decision on how much exposure to allocate to each trade.