This blog post will show you why I believe Option Alpha is a scam. Everything in this post is my opinion about Option Alpha & you are encouraged to draw your own conclusions.
Are you wondering if Option Alpha is worth subscribing to?
Have you wondered if Kirk du Plessis' students are making money?
Do you want to learn how to trade options so that you can start making money?
This blog post presents my opinion of Option Alpha and Kirk du Plessis, his trading strategies, his YouTube videos and his Option Alpha podcast.
Why You Should Avoid Option Alpha
In a few videos (below) I explain why I believe Option Alpha is a scam and why I believe that Kirk du Plessis doesn't make money trading options.
I know that Kirk du Plessis has been operating Option Alpha since ~2011.
This is a long time.
However, when I evaluate his options trading strategies, I feel that his recommendations would not be successful for most traders.
I worked on Wall Street as an investment banker and have completed around $10 billion dollars worth of transactions.
When it comes to actual finance, I know what I am talking about.
I know it seems like I'm bashing the competition, and I actually think that Option Alpha has well-produced videos, however, I don't believe that Kirk Du Plessis and Option Alpha makes money from trading.
He primarily teaches you to sell premium, which is good, however his strategy is inferior because it leads to a large number of challenged positions, stress and losses.
He tends to recommend some technical analysis indicators, which I don't believe work (I think technical analysis is a scam).
Profitable trading is not about knowledge, it's about discipline and patience.
If he's making money by trading, then it is probably a small amount.
I also believe that the majority of his students do not make money by trading options.
Option Alpha Review
Kirk du Plessis of Option Alpha tells you to focus on ETFs.
ETFs have low relative premium when compared to specific stocks.
For example, if I was selling a put on Facebook that's about 10% below it's current market price, my "premium / current stock price" would be around 1.5% .
If I was selling ETFs (like Kirk recommends), at 10% below current market price, I would likely only receive about .75% (or half as much premium).
Remember that the only way we get paid is by collecting premium.
If you follow Kirk's strategy, you will bring in about half as much money as my students collect.
Second, he recommends iron flies or iron butterflies which means that you are essentially selling straddles on ETFs.
This makes his options trading strategy very risky
Let's take the S&P as an example, if it is trading around $2,850, he would tell you to sell a straddle on SPY.
You will sell an at-the-money spread on SPY (both the put and the call side).
This is a horrible idea!
Before you know it, you will be forced to make a lot of unnecessary adjustments.
You will not have a safety net if the trades moves outside of its expected range.
And... you'll have collected substantially less premium because you sold a spread on an ETF.
You won't be able to manage the position and you'll be tempted to compensate for bringing in less premium by trading too many contracts - therefore increasing your risk even more.
I discuss managing and closing options trades in this post. In general, I think that many educators fail to communicate the stress that goes along with having positions that are challenged.
Subscribe to YouTube.com/BestStockStrategy and learn the best strategy to earn consistent profits in the stock market
Straddles = Bad Options Trading Strategy
I never trade straddles.
As a result, you have to spend more money on commissions to make adjustments or, if the underlying doesn't move much, you'll still have to incessantly check your position four to six times a day.
Constantly checking to ensure that the position does not exceed the upper bounds or the lower bounds of the straddle is stressful and it'll eat up a lot of your time.
I have read a bunch of testimonials complaining that Kirk Du Plessis recommends trades that require constant adjustments.
Your commissions also start adding up when adjusting trades, especially when you have a small account.
It doesn't make sense to make four or five adjustments to a straddle, especially when you're closing out the trade at 25% max profit.
That is what Tastytrade recommends and, for the most part, I believe that Kirk Du Plessis copies his options trading strategies from them.
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Option Alpha Summary Review
"Selling straddles is very risky, do NOT do it." - David Jaffee, BestStockStrategy.com
DO NOT Trade Iron Butterflies
You are not going to make money trading iron flies on ETFs.
The premium that you'll receive is already substantially reduced because you're trading ETFs and not individual stocks.
Also, your positions are going to get tested which will require constant maintenance and adjustments.
High trading commissions, and the low probability of profit, indicate that there are better trading strategies available.
The Option Alpha podcast is great and his videos are excellent (from a production perspective).
His videos are a lot better than my videos and his website is also much better than mine.
But... regarding substance, I have more experience than him and... I believe that I am a much more profitable trader.
If your main goal is to make money by trading options and selling option premium, don't waste your time with Option Alpha.
If you're looking to be entertained then subscribing to Option Alpha would certainly be worthwhile.
If you are looking to make money with less stress, less time and effort, and if you'd like to learn the absolute BEST option strategy, then take our Education Course or become an alerts member.
Keep things simple. Living a minimalist lifestyle is awesome. Less stress and more productivity / success.
Key Points: How to Trade Options
Evidence of Possible Fraud
The video above shows how Kirk Du Plessis and Option Alpha treated a student.
Option Alpha promised Mandy a refund then ignored her for a month.
Then it looks like they tried to exploit her for another $1,000.
When Mandy asked for evidence to substantiate his request for $1,000, Kirk Du Plessis could not provide it.
I was able to get her the full refund from Option Alpha.
In my opinion, Kirk is a "Wolf in Sheep's clothing" who exhibits borderline sociopath behavior.
Option Alpha has amazing packaging, but...that's about it.
Plus, it looks like his "trade alerts" are self-reported trades (not verified).
Watch the video above for clear evidence of possible fraud.
Option Alpha Allegedly Caught with Fake Reviews
Kirk Du Plessis & Option Alpha have apparently been caught using fake reviews as shown here:
In my opinion, the evidence is overwhelming that he has used fake reviews on his website.
On Reddit, there are reviews of his service, such as this one Option Alpha Review Reddit.
Option Alpha vs Tastytrade
While, in my opinion, the training from Option Alpha is close to worthless (or potentially harmful), I believe that Tastytrade has some decent education.
So if I had to choose one, I would choose Tastytrade.
Even so, I believe that both Tastytrade and Option Alpha do a disservice to their clients.
Tastytrade recommends trading too often.
Do you deserve success? If so, then you have to learn monetizable skills and develop great habits.
Trading too often and hoping for the best, is NOT a good trading strategy.
Option Alpha also recommends trading often. Option Alpha favors selling iron flies on ETFs (leading to a high incidence of trades which will be challenged).
I discuss this in the video below:
Conclusion: Option Alpha Review
Kirk Du Plessis does not teach the best option strategy if you're looking to make money.
He likely does not even make much money from trading.
I don't believe he posts his full trading statements or account size.
As demonstrated with his treatment of Mandy , he is not responsive to his students and tried to possibly scam her out of $1,000 (after ignoring her emails for a month).
Kirk was also caught using fake reviews: Option Alpha Fake Reviews
In contrast, I am extremely focused on exceeding all of my students' expectations.
What I want to emphasize here is that, even if Kirk Du Plessis has amazing packaging, I believe he's a Wolf in Sheep's clothing and that the information quality and options trading results that Options Alpha teaches are very poor.
Despite the high production-value and fancy packaging, I believe that their content and options trading strategy is poor and that students will not earn money by being members of Option Alpha.
Additionally, as demonstrated in the Option Alpha Scam / Fraud Evidence Video, Kirk Du Plessis doesn't seem to have a problem attempting to scam and defraud his students.
So, if you're looking for an options alpha signals review, an option alpha course review, an option alpha pro membership review or an option alpha pro review then, in my opinion, I definitely believe that you'll likely end up losing money with Option Alpha.