PowerX Optimizer Overview
PowerX Optimizer was developed by former IBM employee Markus Heitkoetter. Markus launched Rockwell Trading in 2005 and
according to his website, his trading mantra is “Plan your trade and trade your plan.”
The PowerX Optimizer software has two main sections. The PowerX Strategy and The Wheel Strategy. The PowerX strategy requires less starting capital and is designed for growth. The Wheel Strategy does best with an account of $20,000 or more.
Traders considering the PowerX Optimizer must remember what the software was designed for. The software’s main purpose is to sort through thousands of stocks and help you find stocks that meet your predetermined attributes to trade your plan. This scanning feature helps save you time when looking for trades.
The trading dashboard is simple and easy to use. Anyone with trading experience and some options experience should be able to learn how to use PowerX quickly. PowerX also offers several webinars, tutorials, and training resources.
The Rockwell Trading website has a few free resources such as:
- Trading Plan – Video Course + Template
- Options 101 – Video Course
- My Trading Routine – Video Guide
- The Complete Guide to Day Trading – eBook
- The Wheel Options Strategy – Book ($4.95 for shipping)
- The PowerX Strategy – Book ($4.95 for shipping)
Follow this link to get started with PowerX Optimizer at our discounted rate.
The Wheel Trading Strategy
The Wheel Options Strategy can be summarized by this:
- You sell cash-secured put options on a stock or ETF until you get assigned and receive the 100 stock shares
- You then sell covered call options on the assigned stock/ETF until it is called away (and collect the dividends – if applicable)
- You start the cycle again
The strategy requires several key points. The PowerX Optimizer software was designed to help you with these key points. The Wheel Strategy is best for
- Stocks/ETFs with high options volume (liquidity)
- Stocks/ETFs that pay dividends (which you can collect if you hold the stock)
- Stocks/ETFs that have a low enough price that you can buy 100 shares – or be assigned 100 shares
- Stocks/ETFs that you wouldn’t mind owning for an extended period of time
The strategy is not a get-rich-quick plan. Each step can take some time to pan out. For example, if you sell a cash-covered put on a stock you receive the premium for selling the put but your cash is “tied up” until the put expires or until you are assigned the 100 shares. Likewise, if you are assigned 100 shares then you can collect the dividend and you can sell covered calls against the stock. Selling covered calls will produce some premium but it can take some time depending on what expiration date you select for it to expire.
PowerX Optimizer helps you sort through many of these decisions. It looks at how much you have in your account to see what liquid stocks to consider. It also suggests how many contracts you should sell puts on and the strike price and the expiration. Really, according to Markus, all you have to do is fund your trading account and learn how to use the PowerX Optimizer program to find the trades. You can even allow the software to connect with your brokerage account and execute the trades for you.
During a live trading secession, the Wheel Strategy scans for trades every two minutes. The parameters of the screener can be adjusted or you can use the default settings. Traders can also view conservative results or aggressive results.
Users can also flag certain stocks as they appear in the scans. Some trades might want to blacklist or never trade certain stocks. For example, it might be better to never trade Chinese stocks during a China vs US trade war.
PowerX, Optimizer is Best For
- Active traders with options trading experience
- Investors wanting to add semi-passive income to their accounts by selling options premium
- Traders with accounts big enough to buy 100 shares of stocks they wouldn’t mind owning
PowerX Optimizer FAQ
- What are the requirements to use PowerX Optimizer?
PowerX Optimizer is web-based – so, you can use it anywhere you can internet access and a web browser.
- How does the PowerX Optimizer perform?
There is not a lot of data on the performance of the software. The software does what it was designed to do. Find trades. However, the market still dictates the success of most investing strategies.
- How does PowerX compare to competitors?
PowerX claims to be the only software available with the same features. PowerX is patent pending. It should be noted that the trades are still executed with your brokerage. PowerX simply helps you find the trades and then prepopulates the orders into your brokerage account.
The Bottom Line
Investors looking to sell options on stocks they wouldn’t mind owning should take a closer look at PowerX Optimizer. If you don’t have experience selling options it might be helpful to explore all the free resources that founder, Markus Heitkoetter, offers at Rockwell Trading.
The PowerX Optimizer software can put the right trades in front of you at the right time. We hope this PowerX Optimizer Review helps you make an informed decision.