Learn to trade options like a pro with Benzinga Options.
If you’re ready to take your options trading to the next level but need reliable guidance and profitable trading ideas, an options trading alert service may be what you need.
Option alert services are valuable for beginners and experienced traders. They can offer users novel trading ideas and save time. Subscribers can gain practical experience and reduce risk by following expert advice.
In this article, Benzinga looks at the five best options trading alert services.
Quick Look at the Best Options Trading Alert Services:
Benzinga’s choice of the best option alert services includes:
- Best for Identifying Investing Opportunities: Stock Market Guides
- Best for Budget-Friendly Subscriptions: Benzinga Options
- Best for Novice Options Traders: CloseOption
- Best for Novice Options Traders: The Trading Analyst
- Best for Experienced Options Traders: Market Chameleon
- Best for Swing Trades: Mindful Trader
- Best for Detail-Oriented Options Traders: Motley Fool Options
1. Best for Identifying Investing Opportunities: Stock Market Guides
Stock Market Guides provides investors with a unique look at the options markets as a whole. It looks for the best options opportunities based on how popular trade setups have performed historically. It sends you alerts throughout the day, depending on the service you choose. Each service listed is $49 per month, but it offers alerts at different times that will match up with your availability:
- Pre-Market Stock Picks (avg. 10 per day)
- Market Hours Stock Picks (avg. 4 per day)
- Pre-Market Option Picks (avg. 10 per day)
- Market Hours Option Picks (avg. 2 per day)
They say their option alerts have an average annualized return of 136% in backtests. Their alerts are for simple call options. They indicate the exact option to buy and alerts are sent by email or text. You can also use the site to learn about investing with:
- Investing calculators
- Terms you should know
- Strategies to try
Pros
- Potentially powerful returns
- You can get alerts before and during trading hours
- You can teach yourself to invest using this platform
Cons
- You may use a strategy that is not supported by this platform
2. Best for Budget-Friendly Subscriptions: Benzinga Options
Benzinga Options is a trading alert service run by the experienced Nic Chahine. The service sends out two alerts every month. Chahine has years of trading experience and demonstrates a 90% success rate based on early news with expert market analysis. Benzinga Options alerts come with high-conviction ideas for ideal strike prices and expiration dates. Chahine shares information about his trading strategy and market rationale. His real-time market analyses help traders learn actionable strategies they can use. Benzinga has a 30-day refund policy, so if you’re not happy you can opt out.
Pros
- A history of profitable alerts with a 90%-win rate
- Twice-monthly alerts
- Budget-friendly subscriptions
- Education and market analysis
- Free access to Benzinga Boot Camps
Cons
- Not suitable for day trading
3. Best for Novice Options Traders: CloseOption
CloseOption is a great place to invest in stock options, commodities, currency pairs, indices and more. You will enjoy bonuses, low minimums, competitive payout figures and a setup where you know exactly what could happen when you make that trade.
This is a safe place to invest that makes it easier for you to learn the process educate yourself about how options can impact your portfolio and expand this portion of your portfolio with some wisdom.
Pros
- This platform aims to make options trading far simpler, especially if you’re new to it
- This platform is safer for investors
Cons
- You may feel like you cannot invest in the things you prefer as you do your research, but if you want to keep your list short, you might enjoy this platform
4. Best for Novice Options Traders: The Trading Analyst
The Trading Analyst uses a swing trading method, focusing on volume trade. The idea is to manage risk so that the loss impact is lower. This strategy looks to ensure overall profitability, which tracks significantly above S&P performance. Trading Analyst boasts a win rate of 53.4% and a 1.67 profit factor. The company provides extensive educational resources covering various trading and risk management strategies.
Pros
- Real-time text message alerts between 2 and 5 times per week
- Profit factor of 1.67
- Realtime portfolio tracker
- Extensive educational resources
Cons
- Relatively expensive
- No in-depth market research and analysis
5. Best for Experienced Options Traders: Market Chameleon
Market Chameleon offers traders excellent analysis tools. Still, these tools are not easy to understand and use, so the value of these tools may be limited to more advanced traders. Traders can customize trading factors and back-test the trading strategy. Five subscription tiers mean users can exclude features they don’t need and pay less for the service. The Market Chameleon Market's educational resources are limited. Traders have access to a 7-day trial before subscribing.
Pros
- Screeners offer research and volume trade reports
- Backtesting for customized strategies
- Customs stock watch lists
- Five subscription services
- Free 7-day trial
Cons
- Limited educational resources
- The interface is not user friendly
6. Best for Swing Trades: Mindful Trader
Mindful Trader has been in business since 2020, so it is relatively new to the industry. The company offers alerts on trades that run for three to five days, so it is the best options alert company for traders who prefer swing trades. Founder Eric Fergusson has years of trading experience. He combines his expertise with mathematical analysis to alert traders when to buy and sell.
Mindful Trader sends users between six and eight alerts per week. The platform provides users with useful educational video training, offering details of the strategies used. There are also videos with general information about stock trading and futures and options trading. You’ll pay a monthly subscription for alerts from Mindful Trader. You can unsubscribe at any time.
Pros
- Back-tested alerts give traders the best chance of success
- Insightful video training
- Easy-to-follow, user-friendly interface
- Can cancel at any time
Cons
- New traders might find the service a little expensive
7. Best for Detail-Oriented Options Traders: Motley Fool Options
Motley Fool Options was launched in 2009, so the company has a long performance history, and profits run at three times the average S&P performance. Traders receive two alerts per month. The alerts come with extensive information on the rationale. The alerts also contain explicit instructions on actions to take.
Motley Fool Options offers users extensive educational facilities under three levels, starting with the basics and moving up to advanced training. Motley Fool offers subscribers a 30-day money-back guarantee with no questions asked.
Pros
- Extensive educational resources
- Two alerts per month
- Detailed alerts include explanations and step-by-step instructions
- Historically the company has performed three times better than S&P
- 30-day money-back guarantee
Cons
- Not for day trading
What is an Options Trading Alert Service?
Options trading alert services employ a team of experts who use advanced algorithms and extensive data analysis to identify trading opportunities for subscribers.
Once the experts decide on a specific trade, subscribers receive notifications with detailed information and recommended actions. These services vary in their methodologies, frequency of alerts and trade duration, but they all provide comprehensive instructions for the recommended trading ideas.
How Does it Work?
An options trade alert service provides subscribers with real-time alerts and recommendations. This is how the service works.
- Subscription: Traders pay a recurring fee for the service. The fee structure may be monthly, quarterly or annual.
- Alert generation: A team of analysts and experts track the options market, looking for trading opportunities. They analyze market conditions, technical indicators, news events and other factors affecting options prices.
- Trade alerts: Analysts send trade alerts to subscribers when they spot an opportunity. The alerts contain details like the option contract, strike price, expiration date and recommended entry and exit prices.
- Market analysis: Some services also provide market analysis and commentary so subscribers can understand why the trade was recommended.
- Risk management: A reputable alert service will include risk management guidelines. They may suggest position sizing, stop-loss levels and risk mitigation strategies.
- Trade execution: Subscribers place orders with their brokers, specifying the option contract, strike price and expiration date.
How to Choose
You’re looking for an options trading service to save time and effort. Here’s what to consider.
Reliability
Assess how the service delivers trade alerts and communicates with subscribers. Consider the ease of use, reliability and responsiveness of the communication channels used for alerts.
Accuracy
Consider the analyst and research team's expertise. What are their qualifications, experience in options trading and ability to provide in-depth market analysis?
Affordability
While cost shouldn't be the sole determining factor, affordability is important. Weigh the cost against the potential benefits and the company’s performance track record.
Ease of Use
Choose an options alert trading service where you can easily receive the alert, analyze its contents and act. The decision on whether to buy or sell is yours, so you need clear, unambiguous information you can trust.
Improve Your Profit Potential
Options trading is not for the faint-hearted. Financial losses are a reality in these volatile environments. Options do, however, offer traders a means of diversifying investment portfolios.
Options alert services give traders access to advice from a group of skilled and experienced market analysts who use their training to offer trade advice. Such services help traders make above-average profits while leaving the research and analysis to the experts.
Frequently Asked Questions
How do you track options trades?
Many brokers provide tracking reports, and relevant information should appear on your broker platform.
Can you make $500 a day trading options?
Options trading is risky, but it is possible to make $500 a day trading on options.
Why do so many people trade SPY options?
SPY options trade in high volumes, and they are one of the most liquid options.