FAQ

Welcome to Michael Carr’s Peak Velocity Trader … an exclusive options-trading service dedicated to pinpointing massive moves in momentum.

After spending 10 years testing this system in his own account, Mike was able to discover the secret strategy behind “velocity trades” — a tactic that flies in the face of Wall Street’s accepted “buy low and sell high” rule.

It’s an unconventional way to make life-changing amounts of money, quickly and consistently.

Every month, this system will pick about three to four of the top velocity trades for you to profit from.

In fact, this system has the potential to turn every $10,000 invested into $77,300 or more … even if you never traded a day in your life.

To help you get started right away, take a moment to read through the frequently asked questions below.

Have a question that isn’t listed here?

Simply fill out the contact form at our Customer Service Center here, and one of our representatives will get back to you as soon as possible.

Your Member’s-Only Benefits

Here’s what you can expect to receive as an exclusive member:

  • Peak Velocity Trader Alerts — Every time the system signals the start of new momentum trend, Michael will send you an email alert giving you everything you need to take advantage of the opportunity. You’ll know why the trade was triggered. You’ll know how long it’s expected to last. You’ll know the specific option trade you should use to capture as much profit as possible. And you will get an alert to close a trade the moment the system indicates it’s time to close the trade.
  • Weekly Market and Portfolio Updates — Twice a week Michael reaches out to you with a webinar discussing what’s happening in the market and the status of current portfolio positions, along with his helpful insights on current events and announcements.
  • Sovereign Investor Daily and Winning Investor Daily — Six days a week, you’ll receive our very best investment strategies (and picks), market forecasts, asset protection plans and personal liberty ideas from our two daily publications. Twice a day, the experts we trust most will bring you actionable solutions to enrich your personal and financial life.
  • 24/7 website access — You can get all the latest information on our encrypted, members-only website no matter where you are and what time it is.
  • The Peak Velocity Trading Manual — This comprehensive guide gives you everything you need to know to get started with Peak Velocity Trader. You’ll learn the tricks we use and how the system finds stocks, so you can be ready to make your first trade in no time.
  • Smarter Investing in Any Economy book — This unique book is widely recognized as the leading books on momentum investing, and it made Michael one of the foremost experts in the field. It is intended to allow anyone understand and use the “relative strength” indicator— and it’s an exclusive gift for Peak Velocity Trader members.
  • How to Read a Stock Chart 101 Video Series — To get you completely comfortable navigating the world of trading, Michael and the team compiled this valuable set of tutorials. Here you will get to know the fundamentals of stock charts and how to read them. You’ll also learn about the common price patterns, what they mean, how to spot them and how to make profitable trades with this information.

Subscription and Account Information

Once you have subscribed, you will be emailed temporary login information, followed shortly thereafter by your permanent username and password. Be sure to store this information in a safe place, as you will need it to unlock the many benefits your membership has to offer.
Have you entered your username and password exactly as you received them, including case-sensitive characters? Also, make sure cookies are enabled on your browser. If you’ve tried the above and you’re still unable to log in, please click here to access our login helper. And don’t hesitate to contact our customer service team for assistance. Our representatives are standing by and ready to assist you.
For help or information, you can fill out a contact form or call 866-584-4096. Our regular business hours are 9 a.m. to 8 p.m. ET, Monday through Friday. You can also contact our team at peakvelocity@banyanhill.com

Click here to sign up for our complimentary Peak Velocity Trader text-alert service. When you sign up, you’ll start receiving a text message on your cellphone that informs you when the alert has been issued. You will need to check your email or the trade alert archives for the specific details of the recommendation.

  • There is no cost to register for the text alert service.
  • Simply enter your name, zip code, email and phone number. Then respond to the text message you receive so we can confirm your registration.

General Questions

(Answered by Michael)

If you wish to maximize your gains so you can rake in a consistent series of triple-digit winners, then yes, you have to trade options. Options provide incredible leverage. For many of the trades in the Peak Velocity Trader service, we are looking for only a small move in the underlying stock — between 5% and 15% — but that small move translates into gains of 90%, 100% and even 200% when we use options.What’s more, options allow you to devote a smaller portion of your overall portfolio to a position. If you wanted to buy 100 shares of Apple, it would cost you upward of $10,000. On the other hand, one call option contract with three months of time to expiration and a strike price at roughly the same price level as the stock would cost you less than $1,000.
In other words, the option contract gives you control of 100 shares of Apple and allows you to participate in the movement of the stock. But you’re now risking only a fraction of your portfolio on one position. You can now better protect and diversify your investments than if you’d devoted $10,000 to one stock.Be sure to check out my Introduction to Options video series to help walk you through the basics of options. In five videos I explain what options are, their advantages and their risks and terms you’ll run across while trading them.

Yes, but it’s not difficult. If you already have a brokerage account, you might need to request authorization to trade options. However, the process is very simple and often takes less than five minutes to complete. Check with your brokerage firm to see if they will allow you to upgrade your account online.If you are opening a new trading account, you need only to check a box to indicate that you want options trading authorization. Either way, you will need to complete a simple one- to two-page form that will inquire about your goals, trading strategies and trading experience. For Peak Velocity Trader, the only trading strategy you will be using is the purchase of calls and puts.

If you have any trouble getting approval for an options trading account, speak to your broker and inform them that you are aware of the risks involved with purchasing options.

Be sure to check out my Requesting Approval to Trade Options tutorial that explains the process and walks you through the parts of a typical authorization form.

You will typically need “Level 2” options trading approval (levels can vary depending on what brokerage you’re using), which allows you to purchase calls and puts. It’s one of the safest strategies because your risk is limited only to the money spent purchasing the option. You’ll never be required to add more money to the account should a position move against you.Option Approval Levels

We encourage you not to use a full-service brokerage firm because you’ll pay significantly higher fees to get in and out of trades. Overall, most brokers charge a set fee for each options trade (usually around $5 to $9) and then a variable fee per contract (about $0.50 to $2 per contract).Below, we have listed 10 of the top-rated options-trading brokers as well as some of their commission fees. Keep in mind that many of these fees may be slightly higher or lower based on your trading frequency.

Brokerage Firms

The stock market operates from 9:30 a.m. to 4:00 p.m. ET, Monday through Friday. It is possible to trade outside of those hours, but all recommendations will be for trading at times when the market is open.The best period for small investors is near the open or closing time. This is when liquidity is available and you are likely to have your order executed quickly.

The worst time to buy is during afterhours trading. This is between 4:15 p.m. and 8 p.m., when there are few transactions.

There are three types of orders to keep in mind as a trader: market orders, limit orders and stop orders.

  • A market order will be executed at the current price. This type of order is used when it is important to enter or exit a position. While it does guarantee the purchase or sale, it doesn’t guarantee the price. That’s because prices are constantly changing, and this order simply instructs the broker to execute, or fill, the order. The price may move up or down the split second you send the order.
  • A limit order is only executed at a certain price. It guarantees you won’t pay more than your limit if buying, or receive less than your limit if selling. This order does not guarantee that your order will be filled.
  • A stop order is used to execute a trade when its price moves past a particular point, ensuring a greater chance of achieving an entry or exit near the desired price. Once the price passes the predefined entry/exit point, the stop order becomes a market order. That means it will be executed but the price may be significantly different than the desired price. Stop orders can be executed 10% or more from the desired price in stocks and 50% or more from the desired price in options.

Limit orders are a way of setting the maximum price you are willing to pay. If the option is infrequently traded, it will often have a “wide spread” (the distance in price between what someone will pay to purchase the option versus what someone is willing to sell the option for). As a result, you risk overpaying.With that in mind, I have carefully calculated the maximum range you should pay for an option, compared to how far I expect the stock to move. Remember, my goal is to hit a triple-digit gain on the position. By setting a limit order range, we ensure you pay a fair price for the option without undercutting your ability to hit that triple-digit win.

If the option’s market price is above the recommended limit price range, you should not purchase the option. Otherwise you’re “chasing the trade,” and that’s something we don’t want you to do.
Let’s look at a quick example:

Say we decide to trade a December $80 call option at the recommended limit order of $3.50 (which is at the end of our range). To get a 100% gain, at expiration, the underlying stock would need to rally 8.8% to $87 ($3.50 x 2 + 80) so that the call will be worth $7.

Now, what if you chase the trade and pay $4.50 to buy the options instead? At expiration, you need the stock to rally to $89 ($4.50 x 2 + 80) for the option to reach a value of $9, for a 100% gain on the position. In other words, the stock has to rally 11.3% for you to get a triple-digit gain.

Set the limit order — and remember, even using the limit price at the end of our range gives you a great value. If it comes back down to our price, great. If not, we move on to the next trade. And don’t worry; you’ll have plenty more opportunities to make big gains.

If you haven’t seen it yet, I created a great video that walks you through placing an options trade with a broker. Click here to watch the video, How to Trade Options.

First, it’s critical that you do not have your entire trading portfolio dedicated to options. You must stay diversified, so you are not only protected against unexpected market volatility, but also so you’re well-positioned to profit from any significant moves higher. You should still have your staple investments while dedicating a small portion of your total portfolio to options trading.Second, you need to plan accordingly when trading the Peak Velocity Trader service. There will be times when we can have as many as 10 trades open at once or as few as two or three positions open. If you are allocating $10,000 to this service, you might consider devoting $1,000 per trade.

This will help build your confidence and experience. And it is always best to do some of your own research, even if you are using a service like this one, because the risk/reward for a certain position might not be at your tolerance level. Either way, we’ll help get you going in the right direction.

Ultimately, the decision is up to you.

We recommend buying an equal dollar amount for each trade. But you should only trade the number of contracts you feel comfortable with.

I suggest purchasing at least two contracts for each trade, because I always suggest selling half the position to lock in profits, while letting the other half “ride” for bigger gains down the road. But if you can only trade one contract, no worries. Just sell that contract when we recommend selling the first half of your position.

Whatever strategy you apply, stick to it religiously. You never know when a loser will come along, and if you’ve put too much of your profits into the wrong trade, you could erode your returns.

In the end, it’s up to what you feel comfortable with. For the purposes of our portfolio, though, we value each holding as being equally weighted.

Stop-losses are a great way to limit losses with stocks, but options are a different matter.We don’t use stop-losses often for one reason: Options are incredibly volatile. They can make quick, violent swings based on temporary or even irrelevant news. So an option’s stop-loss will often be triggered even if the underlying stock is performing the way we want it to. That means we could be stopped out of a great trade that would eventually bring us profits if we had waited just a little longer.

Naturally, if you wish to set stop-losses on positions to match your trading tolerance level, that is certainly your prerogative. But as a strategy, it is not something we do when we initiate a position.

We do, however, have internal profit-managing measures. It’s called our “defense system,” which you can learn more about it here.

Peak Velocity Trader is for risk-tolerant investors who are able to stomach losing 100% on some trades. We don’t frequently lose that. But if a position is a quick loser, it could become a 100% loser and expire worthless.The 100% losers are part of trading when it comes to options. But our strategy has shown time and again that we can easily absorb those when we’re cranking out such large gains elsewhere over and over again. Plus, our profit-managing measures save us from most big declines.

I just mention this because I want you to be aware of the possibility of an option expiring worthless.

You can find the data detailing the quadruple-digit total gains on my extensively tested system in the Getting Started section of our site.

In general, a specific trade will last less than two months. Some options will move quickly, maybe because of a certain earnings report that has a history of moving shares. In those situations, you’ll book profits fast, sometimes within weeks or even days. In other cases, we may roll over positions and sell one option in a stock to buy a new one with a later expiration.Shorter-term options cost less and it is usually less expensive to buy three one-month options rather than one three-month option.

In general, we think it’s best if you do not reinvest your gains. With options, there is always the risk that the underlying stock moves sharply against you in a single day and your position suffers a 100% loss. However, as you develop confidence in the service and with trading options in general, you might consider reinvesting a small portion of your overall gains.
No, because of changes in market structure driven by high-frequency trading, volume on an option no longer matters as much. All contracts in liquid stocks will trade in line with their fair value under the put-call parity formula and the liquidity of the stock now determines whether or not an option is tradable. I always pick options that are tradeable for us.

We don’t generally put out recommendations before the market opens or after it closes. Options are way too volatile for that.If we put out a recommendation overnight, news could occur after hours or before the market opens that radically shifts the value of the options up or down, and then we may have investors potentially getting filled at bad prices.

So we don’t typically price options before or after market hours.

We send trade alerts as emails in two parts. The first part of the alert will be short and focused on the specifics of your trade. It will include just a few lines, plus the information to place the trade (such as the instruction chart and buyzone range).Later in the day, we will post a trade follow-up on the “Trade Alert” section of the website. This gives you more details about the position — such as why our triggers were met.

This setup allows us to get the trade out to you as quickly as possible, giving those who want to get into positions early in the day a better chance.

For those of you who want to wait for the full write-up before making the trade, you can certainly do that as well.
As a reminder, we have a text-alert service — it’s free — that lets you know when a new recommendation has been sent. You will still need to read the details in your email or on the web site.

If you haven’t signed up for that, I encourage you to do so. You will know instantly when our alerts are released. Once you’ve clicked “submit,” just remember to check your phone for the final step. We immediately text you directions to get your confirmation.

Keep your unfilled order open until you receive the next update. But remember, we use limit orders to ensure the trade can meet our profit objective and manage risk. Some will not be filled. That’s okay because there will always be additional trades —so it is best not to chase trades.
No. It is best that you wait for the next new trade.

This is a bonus feature of our service that signals recommendations on higher priced stocks. These include some of the most popular stocks like the FAANGs (Facebook, Apple, Amazon, Netflix and Alphabet — the parent company of Google).These higher-priced stocks are excellent to trade because they can make large moves and deliver quick gains to option traders. But, because the stocks trade for hundreds of dollars per share, the options are more expensive and they carry large risks in dollar terms. This is different than most of our recommendations, which will be in options priced at less than $5.

Portfolio Questions

On the very top of the portfolio you can see the total open positions, the average gain percentage of the entire portfolio, the average hold time in days, and when the portfolio was last updated. You will also see the following columns:Underlying stock: Shows the stock’s unique identifying symbol, known as the ticker symbol, on its own for a clean view.

Strike price: Also known as the exercise price, this column represents the price at which you are willing to buy or sell the underlying security.

Option type: This lets you know whether the option is a call or a put. Calls increase in value as the underlying stock prices rise, while puts benefit from a decline in the stock prices.

Expiration date: Here, you can easily see when the contract for the option will expire. This also lets you know whether it is a weekly or monthly option. Weekly options expire at the close on any Friday, and monthly options expire at the close on the third Friday of the month.

The buyzone table is included in each trade alert that is recommending a buy and presents a range for trading. Prices in the buyzone show levels where a limit order could be placed to ensure an acceptable level of profit assuming the trade performs as expected. Prices range from “cheap” to “very expensive” as shown in the example below.*Note: The following chart below is an example and not to be used for trading purposes.

buy example

Buying up to the middle limit order will give you great value. But there is still room for a significant profit if you use my “Expensive” and “Very Expensive” prices. I do not recommend buying below the “cheap” level. That’s because the probability of the trade’s success falls to a low level below that price.

Just because a stock has moved beyond the trading range I provide doesn’t mean you can’t buy into it — especially if the stock has really far to climb. This is completely up to you and your own comfort level. Just know that I don’t suggest chasing prices, and your results may vary from mine based on the entry price of your shares.

When an option falls below the lowest price in the buyzone, there is a low probability that the trade will achieve the expected gain.

The option dates mark the day I made a recommendation to buy a position. They link to the full trade alert instructions and detailed reasoning for why I think the particular position is a good buy.
This means that the position is still open. Be on the lookout for trade alerts with instructions to sell the position.

If you have a question that wasn’t answered, be sure to check out the Trading Manual or the Options Trading Tutorial videos that can be found here. In addition, we have a team of well-trained, highly knowledgeable customer service representatives ready to answer your questions about the service and your subscription.You can send us an email by clicking here, or call us toll-free at 866-584-4096 during the business hours of 9 a.m. to 8 p.m. ET. You can also contact our team at peakvelocity@banyanhill.com.