WealthPress Options Trading by Roger Scott: Full Product Review
The Precision Profits trading system is one of the many offerings from Wealthpress.com. WealthPress is a respected stock and options trading service featuring several types of trading systems, with the Precision Profits trading system, in particular, being a speculative system targeting high-velocity moves within uptrends. This is a complete follow-along trading service, with no prior experience required for making profitable trades as a new trader. Attend a Finance & Markets Exclusive WealthPress Training Seminar
The WealthPress Precision Profits trading system is a bullish trading system, all signals will be long stock or long call options (your choice, you can trade either or both), with a short-term time horizon. The average trade position is held about two weeks although some are held longer and others shorter depending on the market action. However, if a position is held for two weeks it is reevaluated and then sold or liquidated based on the new assessment. Roger Scott is a master options trader and his service has been created for traders.
If you are an active trader or would like to be, this may not be the service for you. A look at the history will show they make very few trades on a weekly or monthly basis, averaging 2 per week over the past few months and only 98 since the portfolio was initiated a little over two years ago. The trade-off is results though and results are what counts. The WealthPress Precision Profits trading system has a history of delivering results.
According to their trade history, posted on the website, the portfolio has been live since January 2016 with an impressive win rate. They claim a remarkable 77.5% win rate, a figure I would normally be wary of but not in this case (they aren’t trying to make you deposit money with a CFD-contract for the difference, or binary options broker a usual sign of scams and fraud). There are lots of financial frauds on the market claiming high win rates, and far more frauds than legitimate services, so you have to be very careful when choosing one.
The detail that I appreciate, speaking as an options trader, is that the average WealthPress Precision Profits gain per position is over 100% while the average loss is less than -50%. It may sound a little far-fetched to novice traders but I can assure you this is not uncommon among successful options traders.
This Is How The WealthPress Precision Profits System Works
The WealthPress Precision Profits trading system is a speculative trading strategy targeting their definition of a high-probability price swing within an uptrend. The system aims to identify strong uptrending stocks and then watches for high-velocity pullbacks that go against the trend. The counter-trend pullbacks are used as entry points with expectation prices will revert back to the trend and retest the previous highs and possibly move higher.
Signals are issued in two ways using the WealthPress system, the first is by SMS message. Once you’ve joined the group you can sign up for SMS alerts to be sent directly to your phone. The alert will include all the information you need to place the trade once it is issued. Alerts include information like target entry prices for stocks and options and complete details on which option to purchase.
The second method of signal delivery is through their daily newsletter. The newsletter is a brief look at the day’s market action with commentary and analysis of the charts and indices making headlines. Each newsletter includes updates on current positions and instruction for opening new positions although we recommend using the SMS alerts.
Roger Scott, the portfolio manager at WealthPress, cautions all traders to be completely familiar with their trading platform, its order entry screens, and the alert format before trading real money as order-entry mistakes are very common.
Reviewers Note: In order to match the results of the WealthPress Precision Profits trading system as closely as possible, it is important to make all the trades and to make them all as instructed. I know it is tempting to cherry pick trades from systems like this but there is risk in that approach. There is no way to know, for sure, if the trades you choose to enter are going to be the winners; it is possible, however unlikely, that you will choose only the losers and none of the winners.
Trading With The WealthPress Precision Profits System
To give a fair and honest review I always like to give the service a chance to prove itself. However, because they are making so few trades on a weekly or monthly basis I have to start with their trading history as much as I don’t like to do it. The trading history is an OK place to start but like they say, past performance is no guarantee of future success so it’s worth is debatable.
At first glance, I was concerned by a few trades that have been open for much longer than indicated in the introduction material. In particular, trades on eBay and Micron Technology have both been open since March 2018 (I’m writing this review in mid-May 2018) but there is a mitigating factor I will give them credit for. The trades were open just before the March 2018 sell-off, a sell-off that caught many options traders, myself included, by surprise. To further mitigate this issue all other trades made since March have proven profitable and are verifiable on the charts and in the newsletter archives.
My First Trade: May 15th, 2018
For my first trade, I went ahead and bought the recommended call on Micron Technology even though I am months late and the stock is way down from where they recommended it. That was the July 2018 $60 strike with a price of $7.30, but I was able to get mine at $2.08. Surprisingly enough, the stock began to move higher the day after I purchased it providing about 50% profits in my paper trading account at Interactive Brokers.
I had intended to hold this position until they told the group to close it but decided to close the MU trade on my own after the company announced a $10 billion dollar stock buyback. The stock price jumped 6.5% on the news providing a tidy 100% profit on the MU call option I bought. I know this trade isn’t truly representative of the system because of my timing but it counts as a plus in their favor with me. If Micron continues to trend higher as it has been and is expected to the rest of the group should be able to cut their losses pretty short if show a small profit by the time expiry rolls around.
The Second Trade: May 16th, 2018
Surprisingly enough my first true trading alert came the very next day. I was excited to get it for a number of reasons but primarily because it was for a stock we’ve already recommended here at Finance&Markets.com, Wynn Resorts. This is what the alert looks like:
WealthPress Text Alert: May 16, 2018
WYNN stock is having a pullback after reaching all-time highs. Relative strength is high and I believe the price will continue gaining momentum, especially with summer gambling season ahead. Furthermore, the stock experienced very little selling pressure with the scandal surrounding Wynn himself in recent months.
Ticker – WYNN
Expiration – 7/20/2018
Buy the 195 strike price call option. Pay no more than $7.10 – place GTC (good till canceled) and leave in the system till filled or till canceled. WealthPress Precision Profits Watch List Alert.
I rushed to my computer to enter the order where it sat for two days, waiting for the option price to come within my range. At the time I set the order the option was trading near $8.25 on elevated implied volatility. The limit order is expected to see the price fall to $7.10 and that was a good tip. My order was filled on the second day, I got a fill at the required $7.10 and was happy to receive a sell signal alert just a few days later. That alert reads like this:
WealthPress Text Alert:
Please liquidate WYNN at $9.50 or higher. Price is near there now. Precision Profits.
Needless to say, I went right to my trading desk to place the order and this is what I discovered. WYNN prices had moved higher by several percents and put the trade in the money, although it was off the highs by the time I got there. Price for the option was near $9.50 but the spread between the bid and ask price was such a wide range the mid-point of $9.50 was unlikely to be filled without another surge in buying. I place my order as requested and there it sits, the most recent trade listed on my platform is just over $8.00. A look at the WYNN chart suggests to me another move higher in prices is probably coming but it may not be right away.
The Third Trade: May 17th, 2018
My second trading alert came the very next day. I got a message to buy a call on Cisco after it reported earnings. The earnings report was good showing a 4.4% increase in YOY revenue and beating expectations for both revenue and EPS. The stock pulled back because the market had been expecting a much larger beat on earnings and revenue which provided the opportunity that the WealthPress Precision Profits trading system has targeted. The long-term outlook for Cisco remains bullish, a sharp drop in prices on a knee-jerk reaction to news like this is just the kind of opportunity savvy traders are looking for.
WealthPress Text Alert:
CSCO pulled back after earnings and I’m seeing opportunity. Place order to buy call option 7/20 expiration/ $43 strike price at $1.90 or better today only. WealthPress Precision Profits Watch List Alert.
This alert also included a limit order, they like to use limits to control the cost of entry (a good idea in my opinion), but that limit was much higher than the options were trading for when I bought it. They recommended paying no more $1.90, for that day only, but I was fortunate enough to get mine for $1.76. The CSCO stock hovered at break even for several days where it sits now as I finish up this review. The outlook for Cisco is good, the company just reported a solid quarter of earnings proving its position as a leader in Internet and business networking, a sector we at Finance & Markets are quite bullish on so I do expect to see this one move into the money before expiration.
Overall Impression Of The WealthPress Precision Profits Trading System
Overall, I like this system. It is an easy to use, maximum profit system, based on simple options strategy and not so aggressive in its approach that new traders can’t use it. By aggressive I mean they aren’t trading 10 times a day, they aren’t holding dozens of positions, the strategy is straightforward and the signals are actionable. Actionable signals are the key to success with trading services such as this, if you can’t act on what they tell you to do without sitting next to your computer all day there’s little reason to a use service. Click Here Now To Learn More about Precision Profits
What I really like about this service is that it is a great companion for new traders with an interest in options, the system is fully explained and the trades are easy to follow. Bottom line, I think the system is well worth the money, I only took three trades and so far they have all performed as expected. At this rate I could reasonably expect, trading only 1 options contract per alert, to recoup my investment in a matter of weeks and gain valuable trading experience while I do it.