Is Chris Johnson's Strikepoint Trading Legit? [Strikepoint Trader]

Chris Johnson of Money Map Press recently released a presentation pitching his Strikepoint Trading options-trading strategy.

In it, he claims that an estimated $213 billion changes hands every day in the options exchanges and that he has found a reliable way of tapping into that if you are willing to give his research service a try.

In this article, I will give you a detailed summary of how his trading strategy works and the benefits you get when you join his advisory service. After reading this, I hope you will be in a better position to decide whether you should sign up for his newsletter.

No.1 recommendation….

Want to see my no.1 recommendation for making money online?

This made us 6-figures in the last 3 months:

Go here to see my no.1 recommendation for making money online

Go Here To See My No.1 Recommendation!

Table of Contents

What is Strikepoint Trading?

Strikepoint Trading is the title of a presentation that was recently released by Chris Johnson advertising his new research service, Strikepoint Trader.

He spends most of the presentation discussing how his new options-trading strategy works as well as how ordinary people have been racking up returns in the options market.

I have reviewed other options-bases strategies before here, including David Fessler’s 5G Contracts and Alan Knuckman’s Penny Contracts.

Before he gets to the meat of the presentation, he talks of why he prefers trading options to stocks:

His first justification is that options, unlike stocks, don’t require you to track a security for a long period, during which many things can happen to derail it. You only monitor what it is going to do in the next “10 minutes or 10 hours.”

The other reason that he leans quite heavily into is that options earn more money than stocks in the same amount of time. In one of the demonstrations, he explains how a 0.8% drop in the price of Amazon could have yielded a gain of between 46% and 56% in one day if you traded options.

Chris also shares his “three rules” of investing in options. They are:

Don’t invest more than you can afford to lose.
Don’t treat options like a scarce commodity and start chasing them because there’s always another trade.
Trust your strategy and your data even if you miss out on some good trades.
Don’t sit on your trade for too long. The sooner you cash in, the better because the longer you hold your position, the greater the risks you expose yourself to.

Who is Chris Johnson?

Chris Johnson is an options trading expert who works for Money Map Press. He is the editor of Strikepoint Trader and Night Trader.

He is a quantitative analyst who has spent most of his 30-year career designing and interpreting complex models for investment firms to enable them to make more effective investments. He applies advanced mathematical concepts like stochastic calculus, differential equations, linear algebra, and statistics to his models.

He built his first model in 1998 and it was capable of analyzing around 2,000 records per day. He has been upgrading it and it now analyzes up to 700,000 records.

Chris has degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before joining a major equity firm where he was the Director of Quantitative analysis for 8 years.

He founded ETF Advisory Research Partners in 2007. The firm is known for its contributions to Behavioral Valuation Systems.

Chris frequently appears on CNBC, CBS Radio, Fox, and Bloomberg TV as a commentator. His work has been featured in USA Today, Barron’s, The Wall Street Journal, and Newsweek.

How does Strikepoint Trading Work?

Strikepoint Trading uses three indicators and together they form the Strikepoint Formula. They are:

The 50-day moving average
The 20-day moving average
The Relative Strength Index (RSI)

The three indicators are superimposed on the stock chart to locate The Strikepoint (where you place your trade).

The 50-day moving average

The 50-day moving average enables him to know where the price of the stock will move in the next 24 hours, albeit with a low level of accuracy.

Here is what he says about it:

“What you may not know is that two times out of three, you can use the price crossing that line to accurately predict what will happen next.

Why? Because when a stock goes above its 50-day moving average, two times in three, the next day it closes higher than its opening price.

When the Stock Goes below Its 50-Day Moving Average, Two Times in Three, the Next Day the Stock Trades below Its Opening Price.”

Using Etsy (ETSY) as an example, when the orange line (the 50-day moving average) crosses the stock price, the price doubles.

To improve the accuracy of the prediction, we add the next moving average.

The 20-day Moving Average

He describes the 20-day moving average as follows:

“I call this the Trader’s Trendline because it moves a lot faster than the 50-day moving average.

It tracks swings in the price more quickly, and if you’re going to trade an option, it needs to confirm with the 50-day.

The price needs to be above both just like it is here in the second week of April.”

The 20-day moving average is the dark blue line.

The next indicator shows us whether there will be room for Etsy to keep going up:

The Relative Strength Index (RSI) indicator

He describes how it works as follows:

“The RSI is basically a rubber band.

The farther it gets from the stock price, the harder it pulls.

When it gets nice and high like this… way above where the stock is trading… there’s a pretty good chance that the price is going to snap up to meet it.”

He goes on:

“The Space between the 20-Day Moving Average and the RSI Is the Profit Window.

Once the price crosses the 50-day moving average, it needs to hit this profit window for readers to make a trade.”

And that’s how his Strikepoint trading strategy works.

What is Strikepoint Trader?

Strikepoint Trader is a new investment research service that Chris has built around his Strikepoint Formula. It is an options-based service that offers its subscribers the following benefits:

Real-time trade recommendations. Each time Chris finds a new play, he will send you an alert with the exact option along with everything else you need to know about it.
Strikepoint Monitor. Every day, he sends you a five minute debrief of everything pertinent that is going on in the market. He looks back at the biggest trades of the previous day and mentions the trades he believes are about to hit the Strikepoint. He also highlights the 10 hottest companies you should keep an eye on.
Strikepoint Alerts. You also receive alerts on your phone. These alerts are usually via email but you can subscribe to the text alert service.
Daily Deep Dives. Every trading day, Chris walks you through the sectors he believes are about to make big moves.
Weekly Masterminds. On Fridays, Chris does a live stream from his office to give you a chance to look over his shoulder and watch his computer screens as he implements his trades. The stream has a live chat option through which you can submit questions. He picks the most popular ones and answers them.
Ultimate Guide to Options Trading. This is a sort of trading manual that explains how the Strikepoint Formula works. You can learn to spot the opportunities on your own once you read the guide.
Fast Profits Insider. This is a forum through which you get to join a community comprised of options traders and other people who are subscribed to Chris’s service.
Strikepoint Trader Command Center. This is a members-only web portal that gives you access to all the tools you need to make money trading options.

Subscription Fee

The fee is $1,950 per year

Refund Policy

The subscription fee is non-refundable.

Strikepoint Trading Conclusion

Strikepoint Trading is an options trading strategy developed by Chris Johnson. A quantitative analyst by trade, he based the strategy on a set of indicators that alert him when a stock is about to go up or down. He then trades the derivatives, which he insists generate higher returns.

Although he spends a significant amount of time highlighting success stories born of the strategy (or just trading options, overall), you shouldn’t go into this expecting to strike it rich.

Remember that options trading has its pitfalls, not to mention there are no guarantees that his strategy can consistently make you money in the markets.

Speaking of the disadvantages of options trading, you can expect to pay more in brokerage fees as well as taxes (as short-term capital gains). Additionally, portfolio values are likely to experience wide swings in value and not many people are comfortable handling high volatility.

I hope you will factor in the risks involved before you decide to follow his recommendations.

Before you go…