If you are looking for a reliable and profitable way to trade options, you might have come across two popular services: Ten Percent Credit Spreads and Option Wisdom Alerts. Both of them claim to offer consistent returns by selling credit spreads on various underlying stocks and ETFs. But how do they compare in terms of performance, strategy, risk management, and customer service? In this article, we will review the pros and cons of each service and help you decide which one is best for you.

Ten Percent Credit Spreads:

10% Credit Spreads is a service run by ABTrades, LLC, that provides weekly trade alerts for vertical credit spreads. The name comes from the goal of achieving 10% return on margin per trade. The service focuses on selling out-of-the-money credit spreads on high-quality ETFs with a two to three week expiration.

Pros:

• Simple and easy to follow strategy that does not require complex analysis or indicators because they follow a quant strategy with a 94% win rate since 2007.
• Consistent performance with an average win rate of over 90% and an average annual return of over 30%.
• Low risk trades with defined maximum loss and high probability of success.
• Excellent customer service with fast and friendly responses to questions and comments.

Cons:

• Longer hold time because of the two to three week expirations.
• Limited trade flexibility with no adjustments and limited hedging options.
• High subscription fee of $97 per month with a “Make Money or Don’t Pay” guarantee.

Option Wisdom Alerts:

Option Wisdom is a service that provides option trading alerts based on where the smart money is trading. The service monitors the option activity of institutional investors and hedge funds and identifies the most profitable trades based on volume, open interest, implied volatility, and other factors. The service mainly sells credit spreads on stocks and ETFs that have high option liquidity and strong directional bias. The service also provides adjustment alerts when the trades need to be rolled or closed.

Pros:

• High trade frequency with multiple trades per day.
• High trade variety with different types of credit spreads on various stocks and ETFs.
• High trade flexibility with frequent adjustments and hedging options.
• Reasonable subscription fee of $99 per month.

Cons:

• Complex and difficult to follow strategy that requires extensive knowledge and experience in option trading.
• Inconsistent performance with a wide range of returns and losses depending on market conditions and trade execution.
• High risk trades with undefined maximum loss and low probability of success.
• Poor customer service with delayed and vague responses to questions and comments.

Conclusion And Discount:

Both 10% Credit Spreads and Option Wisdom have their own advantages and disadvantages depending on your trading style, goals, and preferences. If you are looking for a simple, consistent, and low-risk way to trade options, 10% Credit Spreads might be a better choice for you. If you are looking for a more dynamic, diverse, and flexible way to trade options, Option Wisdom Alerts might be a better choice for you.

Thanks for reading 🙂
Austin Bouley
CEO & Chief Strategy Officer