AMAC Options Basics

The following email has been received on August 29th:
"Your spreadsheet is a bit confusing, it's not clear which positions are open and which ones you have already closed. I would appreciate also if you could send an alert to close a position, or an alert when your open order has triggered....
I think it would be nice to move closed positions in a separate area...
your always follower and worshiper
Banana Joe"

Dear Banana Joe, thank you for your email. Before answering your questions, let me take you through our Options Strategy and Procedures step by step:

1. During the third week of each month, we do run our AMAC for identifying the best promising options. If possible, we usually select:

• 4 options for those conservatives followers with expiration dates not less than 2 calendar Options months, and
• 4 for those speculatives followers with one month expiration, plus
• 3 to 4 other options for All followers;

2. Hence, from the initial published spreadsheet you can see:

• the Symbol and description of each Option;
• the value of each Option at the date of inception;
• the Recommended buy price under the column "Reco at $";
• and the Status of each Option which is at this stage is "Open";

3. When our Recommended price is met the Status changes from "Open" to "Trig'd" and is then highlighted by related color;
4. Only when any Status changes, an updated spreadsheet is published after the closing bell with the Last Price, the High and Low during this specific day;
5. Alerts will be posted in the following cases when:

• a stop loss is necessary;
• we recommend the cancellation of an "Open" option (not yet triggered). This will be reflected in the same day in our spreadsheet and then it will be deleted on the following day;
• we recommend the "Close Price" (this alert will be given at least one day in advance);

6. Subsequently when a position is closed, an updated spreadsheet will be posted at the end of the trading day with the related profit and loss;

I hope the above answers all your questions otherwise please don't hesitate to let me know. Thank you and good trading week.