Total Alpha Trading Options Strategy (Jeff Bishop Review)

Have you considered buying options contracts? Jeff Bishop’s Total Alpha Trading options strategy is one of the best ways to make money options trading. We reveal how Jeff Bishop uses time decay to make BANK! Don’t miss the Total Alpha training live webinar below.

 

The moment you buy an option, the clock starts ticking like a time bomb. Sounds dramatic, but it’s true!

 

Every second of every hour eats away at the value of that contract. And while the market closes for the weekend… time never stops and neither does the decay in options. 

 

Disclosure: There are some affiliate links below, but these are all products I highly recommend. I won’t put anything on this page that I haven’t verified and/or personally used.

 

If you’re not careful, the option could be worthless by expiration! Don’t let this happen! Check out this FREE EBOOK by successful millionaire options trader, Jeff Bishop.

Jeff covers all the essential parts of his strategy including options basics, time decay and his exclusive ‘money pattern’.

 

total alpha trader scam

 

I learned to flip the script by selling options and now put time on my side. Every second that ticks away fills my bank account.

 

Unlike stocks, option traders need a keen sense of time. Yet, most traders blindly buy options without grasping the difference between the two.

 

Nothing sucks more than watching the stock do exactly what you wanted and still lose!

 

Don’t blame a losing trade on a bad strategy right away. You might just not understand time decay.

Jeff Bishop's Total Alpha Trading Scam

Jeff Bishops Total Alpha Trading: Time Decay

 

Jeff Bishop uses time decay as the very foundation of his Total Alpha service.

 

You can learn how Jeff’s strategy and more about his premium elite option trading services in his FREE WEBINAR!

 

Jeff Bishop is a multi-millionaire options trader that runs several options trading alerts and educational services.

 

Here are a few articles that I have written about Jeff Bishops options trading.

Is Jeff Bishops Bullseye Trades a SCAM?

How Jeff Made $71K in a SINGLE TRADE last week!

Is Jeff Bishops Alpha Trading Service LEGIT?

Jeff Bishops Money Pattern REVEALED!

 

 

Jeff Bishop Total Alpha Training

 

What is Time Decay?

 

Time decay means options lose value every day. The closer they get to expiration, the more they lose. Traders measure the loss with the Greek symbol Theta.

 

Option sellers leverage time decay to churn out consistent profits like insurance companies. Not only does it create high win rates…it gives you a statistical edge.

 

Let me show you how they do it.

 

Think of a coin. Each time you flip it, there is a 50% chance for heads. Now I bet you that it lands on heads 10 times in a row.

 

I would only win that bet 0.098% of the time.

 

Now suppose I made the same bet but made you flip it 1 million times. Do you think it would show up heads 10x in a row?

 

Absolutely, the statistics say it will happen.

 

Option contracts work the same way. Except, each day is like another coin flip. The more time you allow for an event to occur, the more likely it will occur.

 

That’s why far out-of-the-money options going out a month cost practically nothing. But go out a year, and they may have some value.

 

It’s all about probabilities. And time drives those probabilities. The longer until expiration, the greater the odds the option contract pays out.

 

That creates the following graph on how the value of an option contract declines over time.

Total Alpha Training live webinar

In-the-money options lose value in a straight line. Each day that passes cuts out the same amount as the last day.

 

At-the-money and out-of-the-money options work differently. They lose money at an ever-increasing rate. By the time you get within a week of expiration, it’s like a rock falling over a cliff.

 

Buying options

 

Let’s look at what happens when you buy an option.

 

Option buyers make money when a stock moves in the direction of their trade (up for calls, down for puts). At-the-money options have the highest amount of extrinsic value.

 

Note: Extrinsic value is the cost of the option that would goes to $0 by expiration. It gets smaller the further from the current stock price you get, both for in-the-money and out-of-the-money options.

 

Options closer to expiration cost less. But, they decay much faster. Conversely, options with a lot of time left decay slower. But they cost a lot more.

 

Also, the closer a stock gets to expiration, the more it moves directly with price (known as Delta). That’s why options with a long time to expiration don’t move a whole lot with the stock.

 

Let me lay out the big insight here. Ready?

 

Choose an expiration that is about 2x-3x the expected time for the trade to play out.

 

If you expect the trade will take two weeks to play out, give yourself a month or two. Any shorter and you run the risk of the trade not happening quick enough. Longer and you don’t get enough bang for your buck.

 

Now, you can reduce the impact of time decay by buying options further in-the-money. However, they go up in price as the intrinsic value increases. Additionally, the liquidity (ability to buy and sell) dries up.

 

That’s how Jeff Bishop recently traded COST. He expected the setup to take a week to play out. So, he bought call options going out two weeks.

 

With the rise in the markets, he flipped 150% on the trade.

Jeff Bishop options time decay

Selling options

 

So what happens when you sell an option?

 

You want options you sell to expire worthless. That lets you keep all the credit you receive from the sale. 

 

Just like an insurance company, you want to collect the customer’s payment and not have to pay out a claim.

 

When you sell options with a lot of time left, you don’t make as much per day. Selling options close to expiration maximizes your pay per day.

 

However, there’s a catch…

 

As you get close to expiration the options start to get very cheap unless you’re at-the-money. In order to make the probabilities work, you either need to use good support and resistance or sell out-of-the-money options.

 

But, when you sell out-of-the-money options with little time left, you don’t get much. In fact, it can be so little that the commissions you pay don’t make the trade work.

 

There is a sweet spot depending on the type of trades you want to make.

 

First, you rarely want to sell anything over 60 days. Otherwise you don’t get enough value in the time decay. The ideal time frame for time decay is between 21-45 days.

 

That balances making enough on the trade and getting value from the time decay.

 

If you trade support and resistance levels, weekly options work well. This is the area I like to play.

 

I trade the charts using technical analysis. This lets me pick off areas where the stock should bounce in the other direction.

 

And I don’t need it to bounce for long. It can only be a few days. But, those few days are worth a lot of money in time decay, especially at the end.

 

So how much is your time worth? You can shorten your journey to profitability with Total Alpha. Jeff Bishop will show you exactly how he trades, along with the strategies that made him millions.

Here is his Total Alpha training live webinar (well it WAS live at one point….), check it out below!

Is Jeff Bishop a Scam Artist?

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I hope that you enjoy the Total Alpha training live webinar and learn more about how to use time decay and options trading to make some extra money trading online.

Don’t miss this FREE Swing Trading DVD (Worth $1000) AND get free instant access to THREE more stock trading training DVDs worth another $4,000 !!  I wrote a full review of this swing trading DVD here.

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