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Friday September 03, 2010 |

OEX Advantage
Vital Statistics

Q. What exactly is the OEX?
A.
The OEX is an index of 100 leading corporations. Much like the Dow Jones (30
leading stocks) the OEX is comprised of highly liquid blue chip stock issues.
Q. What are the advantages of trading OEX options?
A.
The biggest advantage of trading OEX options versus regular stock options is
liquidity. The OEX is the most widely traded option on the Chicago Board of Options
(CBOE).
Q. How are the trading ideas selected?
A.
Each evening after the market closes our team of technical analysts perform a
series of evaluations for each of the major averages. They begin by searching for shifts
in intermediate and short term momentum. Next they look for premium irregularities for
near and at the money index options. Finally, given those tests, they decide if the markets
are more likely to advance or decline the following session.
Q. The OEX index is very volatile, how will I know what to do during the day?
A.
The OEX Advantage consists of two components. The first is the
nightly report. This report is designed to provide subscribers with a "primer" for the
next trading session. In addition you will receive regular intra-day alerts at 10:00 a.m.
ET, 1:00 p.m. ET and 3:00 p.m. ET, providing you with the specific option, exact entry, stop loss and exit
prices.
Q.
Your returns are impressive, but the market experiences periods of strength and weakness how
does the OEX Advantage deal with this?
A.
There are only two ways to make money in a lower (bear) market; short selling
and option trading. Short selling requires a great deal of money and exposes investors to
unlimited potential losses. But option trading requires considerably less money and losses
are limited to the initial investment. Stocks generally fall twice as fast than they rise.
Q. I've heard that the best way to trade options is through spreads. Does the
OEX Advantage enter into option spread strategies?
A.
No. We have found that most of our clients are looking for straight index
option trading. We do not suggest spreads of any type, nor do we sell uncovered options.
Q. There are several stock option recommendations on your sample newsletter. Do
you also trade stock options in the OEX Advantage?
A.
The OEX Advantage does not
normally add stock options via intra-day reports. Subscribers who choose to follow
the
recommendations found on the nightly report are advised to follow the predetermined parameters very closely. The
editors of the OEX Advantage update these parameters each evening.
Q. What has been the track record of the OEX Advantage?
A.
The OEX Advantage began on November 1, 1994. Since that time the OEX
Advantage has amassed an impressive trade history. Click
here to see the complete trade history.
Q. How will the OEX Advantage make me a better trader?
A.
At Bedford and Associates we have been trading index options for many, many
years with excellent success. Although we do not profess to be perfect, we can help you
remove emotion and reduce risks in your trading practices.
Q. How do I get started?
A.
You can subscribe to the OEX Advantage by becoming a Bedford & Associates
Research Group member. Online subscription prices are $95.00 for 1 month, $257.00 for 3
months, $967.00 for one year and a 2 week trial is FREE to new
members.
Click here to become a
member.
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