Best Options Trading Alert Services - Based on Research
Stock Market Guides is not a financial advisor. Our content is strictly educational and should not be considered financial advice. We do our own research on each product or service we write about. If you click on the links we provide, we may receive compensation.
Options trading alert services can provide a source of substantial profits for investors. They offer timely notifications when a potentially profitable option trade opportunity arises.
There are a lot of options trading alert services. With so many choices available and so many charlatans in the industry, it’s essential to ensure you’re getting alerts from a bonafide and reputable trade alert service.
Trading options can be a great way to make money, but it comes with risk and it can be hard to spot trading opportunities in real time. You can address both by paying for a good options trading alert service.
Options Trading: An Overview
An options trader looks for ways to profit from price movements in the stock market. But instead of buying stocks, they use options as the vehicle for capturing those profits.
Options give someone the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date.
One reason they are popular among investors is that they use leverage. You can control a lot of shares of stock with a lot less money using options than you could if you were to buy the stocks outright. If your goal is to outperform the S&P 500 and you are ok with taking on the extra risk, then options could be a good avenue for you to explore.
There are a lot of different strategies used for options trading. Since options have expiration dates, most investors who use them are looking at a shorter time frame for their investments.
Options are, therefore, particularly popular for use with swing trading strategies. They are also used by people in the day trading crowd.
It’s important to thoroughly understand the market and how options work before making any trades. That way, you can minimize your risks and maximize your potential profits.
What is an Options Trading Alert Service
Options alert services offer two key features.
One is that they send an alert when an options trading opportunity comes up. That alert could be in the form of a text message, an email, an app notification, or a message in a trading chat room or Discord server.
The trading alerts will typically indicate all the relevant information you would need for an option, including the underlying stock symbol, the strike price, and the expiration date. Options have a lot of moving pieces, which makes them more complicated to trade than stocks. But with options alert services, they typically do all the work for you to determine exactly which option to consider trading.
The second feature of these options alert services is that each has stock market knowledge and expertise that they infuse into each alert. As you'll see below, each service has its own proprietary way of determining which options are the right ones to buy, and when it's the right time to buy them.
One of the benefits of getting options trading alerts is that they make it so easy. You get the alert, decide if you want to buy it, and then just open your trading platform and make the trade. It certainly simplifies the investment decision-making process.
Finding the Right Options Trading Alert Service
Each options alert service is different. Our list below shares the services that we feel are the best, but you still have to choose which one from this list is a good fit for you.
Some of the alert services send alerts by text, while others post alerts through a group chat. You’ll have to consider which form of alert fits your lifestyle and preferences best.
These alert services each have a unique approach to identifying good option trading opportunities. Some use technical analysis based on the underlying stock’s price chart. Others do a deep dive into the company’s prospects for growth.
The trade alert services in this article also feature different investment types in general in terms of the length of the investment. Some are for day traders, some are for swing traders, and some are for long-term investors who like to use LEAPs as their option vehicle of choice.
Also, these services offer varying amounts of information with each option trade alert. For example, some alert you to the underlying stock and the expiration of the option they like, but they leave it up to you to choose the strike price. Some give you profit targets and stop losses to use for your options trades, and others do not.
Finding the right options trading alert service is critically important. This industry is one that’s riddled with money-grabbing hype artists. There are definitely some honest, rock-solid trade alert services, and the purpose of this article is to share those with you.
Best Options Trading Alert Services
Here are the ones that we think are the best:
The Mindful Trader options alert service is run by Eric Ferguson. He’s a legitimately nice and caring person, which is a breath of fresh air in this industry. (And a bonus is that he’s so fast at responding to emails!)
Eric did years of research on stock market price tendencies. And he translated those into an options trading strategy. So when he sends an options trading alert, it’s because he knows from history that the trading strategy has historical odds in its favor.
That’s a big difference from most other trade alert services, who make trades based on gut instincts rather than historical evidence. It’s a more scientific approach to trading than flying by the seat of the pants.
His trade alerts are for swing trades, which means that most trades last several days. And he normally sends about 5-10 options trading alerts per week, although it varies.
Once he picks an option he wants to alert, he gives you all the information you need.
Stoplosses and profit targets are assigned upfront and there is a time limit indicated for each trade. He also specifies the exact ticker symbol, including the expiration date and strike price. His alerts take all the guesswork out of options trading.
So once you see the alert information, you can set up everything for the trade at the start. Then you don’t have to worry about it anymore until the time limit hits (which is also alerted as a handy reminder). It’s a set-it-and-forget-it type of trade alert service and typically only takes a few minutes to set up each trade once you get used to it.
One downside to the service: he doesn’t send actual texts or real-time alerts. He simply publishes the trades on his website, which is his way of alerting subscribers. He says most trades show up in the first 15 minutes of the stock market opening each day. He points out that if you want real-time alerts, you can enable them using a third-party service.
What we love most about Mindful Trader, aside from the fact that there’s so much intelligence that’s gone into his trade decisions, is that this guy is just totally transparent and honest.
There are some periods where his trades don’t do well, but he doesn’t hide that. He puts his trade performance out in the open for everyone to see. And he doesn’t make a secret of the fact that there are periods of strong profits and also periods with no profits or drawdowns.
With some other options trading alert services, they claim to make endless profits without ever losing. In our experience, that’s just not possible, and we’ve tried a lot of trade alert services. So when one of these services makes it clear up front that there are periods of losses, that’s appealing to us because it reflects the type of candor we want from an options alert service.
He’s a little more aggressive with his position sizing than what we would prefer, but he gives you a calculator so that you can calculate how to do half his position size, which is just about perfect for us.
Mindful Trader has just one single price for everything they offer: $47 per month. That keeps things simple. And you don't have to worry about him hounding you with upsells after you sign up. It's not his style.
Overall, Mindful Trader is right for someone who is looking to generate long-term wealth, is willing to commit about 15 minutes per weekday to managing trades, and wants to be educated by someone who takes a very academic approach to trading.
Mindful Trader is not right for you if you’re looking to day trade, if you want to be looking at the stock market all day, or if you want overnight riches. You’ll see below that there are other options trading alert services we’d recommend if those are your objectives.
Swing Trading Club
The Swing Trading Club is a service that uses a discord server as a trading chat room. As you can imagine, this service doesn't focus on day trades. It stays in one lane, and that is the lane of swing trading.
The alerts for options trade opportunities come from within the discord chat and are provided by the community members. They have channels within the group specializing in options swing trades.
There are a wide variety of options trading alerts that you'll see in their group chat. Some are for deep-in-the-money options and others are for affordable out-of-the-money options with homerun potential but lower odds of success.
We joined the service and checked out the option trade alerts. One user posted this in the chat room: "Bought PANW 182.5 April 14 calls at 9.55. Will take profit around 14." We liked how the alert included all the relevant information: underlying stock ticker symbol, strike price, expiration, cost of the option, and profit target. That's all the information needed to follow the trade yourself.
We checked the price of the option when we saw the alert, and it was about the same price, so the timing of the alert was effective. And sure enough, seven days later it hit the profit target.
We noticed that the participation levels in the chat room seem to vary. There are hundreds of members, but at times the activity is minimal. At other times the chat room is hopping. Activity levels seem to correspond with the state of the stock market.
In addition to the trade alerts, they also offer a trading course that teaches a lot of swing trading chart patterns and indicators. We didn’t find the course to be particularly extensive.
The Swing Trading Club is the most affordable of all the services on our list. It’s only $19 per month.
Trade alerts from this service are only sent during market hours, just like most other options alert services, so if you are not available to monitor your trades throughout the day, you may miss some potential profits.
This service might be the right fit for you if you are looking for an affordable way to get your foot in the door with options trading alerts. It’s also good for you if you like the idea of joining a community that’s eager to collaborate.
You can take advantage of short-term price fluctuations in the stock market with options trading alert services, which offer timely notifications when trade opportunities become available.
Given the leverage that options provide, they offer a high level of both risk and reward. You have a better chance of maximizing your profits from options trading if you find a service within your budget that provides reliable alerts. Our list here of the best options trading alert services aims to make it easy for you to do exactly that.