Pure Power Picks Review
Ease of use
Pure Power Picks is a stock and options trading signal service. This service concentrates on swing trades with weekly to monthly timeframes and provides 3-5 trade ideas per week, including entry locations and profit targets. Pure Power Picks aims to be a valuable tool for traders looking for real-time trading possibilities. Find out if this service is right for your needs by reading our complete Pure Power Picks review.
- 3-5 swing trading alerts per week
- Long options trades are easy to follow
- Alerts are based on options sweeps and support/resistance levels
- Relatively inexpensive and offers a 7-day free trial
- Past performance is difficult to gauge due to the reporting system
- Service does not offer “sell” alerts
Pure Power Picks is a trading signals service for stocks and options. The service offers 3-5 trade ideas each week complete with entry points and profit targets. Pure Power Picks doesn’t offer much detail about its performance, but the platform advertises that its top five trades in 2021 returned an average of more than 500%.
So can Pure Power Picks help you find profitable trades? In our Pure Power Picks review, we’ll explain everything this service has to offer.
Pure Power Picks Pricing Options
Pure Power Picks offers two services: Alerts and Trading Room.
The Alerts service includes access to 3-5 trade ideas each week along with a weekly market watchlist. It costs $37 per month, $97 per quarter, or $297 per year. You can try out the Alerts service free for 7 days (credit card required).
The Trading Room service includes everything in the Alerts service, plus access to a Discord trading room where the traders behind Pure Power Picks share ideas on a daily basis. The trading room also includes options alerts and alerts about results from Pure Power Picks’ live stock scanners. The Trading Room plan costs $97 per month, $247 per quarter, or $797 per year and does not offer a trial.
The majority of our review will focus on the Alerts service.
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Pure Power Picks Trading Style & Alerts
Pure Power Picks is a technical trading service that focuses on swing trades with weekly to monthly timeframes. Trade alerts are delivered by email or text message three to five times per week and include all the details that traders need to open a trade.
Nearly all of the recommended trades are long put or long call options trades. Pure Power Picks does not use multi-leg options strategies. Each alert includes the ticker symbol, the recommended options contract to buy, the contract’s bid price at the time of the alert, and the profit target for the trade.
For nearly all trades, the profit target is set at 60%.
Newer alerts have started incorporating profit goals based on risk tolerance (i.e. conservative, moderate, and big).
Each alert includes one or two sentences about the justification for the trade. This is nice for traders who want a simple, concise trade thesis, however, newer options traders may want more details (some of which can be found in the trading room).
Pure Power Picks appears to target stocks that are breaking above resistance or below support with strong momentum. The traders behind Pure Power Picks frequently cite options sweeps as evidence for a coming move.
On occasion, Pure Power Picks also targets reversals around support or resistance areas when stocks appear to be losing momentum and are strongly overbought or oversold.
Pure Power Picks Performance
Pure Power Picks provide a spreadsheet of past picks dating back to January of 2022. This can be found on the Alert Tracker page.
The spreadsheet includes a few details about each alert, including:
- Expiration (of recommended options contract)
- Strike Price (of recommended options contract)
- Call or Put
- Price of the contract at the time of the alert
- High price of the contract since the alert
- Max gain potential
So, how does the service perform?
Let’s start with the positives.
First, there are a lot of alerts with high profit potential. Of the 190 trades on the sheet, there are over 75 alerts with max gains of 100% or more. Of those alerts, there are over 20 with max gains above 300%.
Since these are basic alerts to buy calls or puts, they are relatively easy to follow if you catch them at the right time (compared to complex options strategies that newer traders may struggle with).
Additionally, most of the recommended contracts have at least a few weeks until expiration, with some as far as a few months out. This gives subscribers more time to take advantage of the opportunity (vs. having to day trade a contract with a short-term expiration date).
It’s clear that the service has many picks with impressive profit potential, but there are a couple of issues with the reporting method used in the spreadsheet.
While the spreadsheet isn’t intended to tout the actual performance of the service’s alerts, it’s still important that subscribers have a good understanding of how it works.
Since the service only tracks the “High” from the alert price, there are no losers displayed on the performance chart. A losing alert is technically one where the “Max Gain” is 0%, however, it could also apply to certain alerts where the max gain is so low that it would be nearly impossible to profit from the trade (i.e. a 5% gain).
For example, here is an alert marked as a 2.58% Max Gain alert in the alert tracker.
The alert was issued when the contract was priced at $3.10 and, theoretically, there was an opportunity to make 2.58%, however, it would be nearly impossible.
There’s nothing wrong with having losing alerts – no trader has a 100% win rate. It would be nice to get that transparency in the reporting. In defense of the company, they do include a disclaimer that mentions that the “Max Gain” is intended to illustrate the potential of the trade while stating that it is unlikely that traders will achieve said gains.
There is one other issue with the performance reporting.
Since there are no sell alerts, the performance history is theoretical. It is ambitiously based on how much you could make if you got both a perfect entry and a perfect exit.
For certain trades/alerts, this is less of an issue since traders who capture part of the move will still make a nice profit.
Here is an example of an alert with a Max Gain of 121.05% in the alert tracker:
While subscribers may not collect the full 121.05%, there is plenty of room to collect a nice profit.
With other alerts, this isn’t necessarily the case.
Here is an example of an alert with a Max Gain of 64.84% in the alert tracker:
The original alert had a bit of upside before experiencing a ~70% drop and rebounding to return the gains reported in the alert tracker spreadsheet. While the max gain listed in the spreadsheet is technically accurate, it isn’t necessarily representative of the quality of the trade.
Simply put, without a stop loss or sell alert, it’s difficult to determine the true aggregate performance of the alerts.
This leads to an important discussion on who this service is best for.
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What Type of Trader is Pure Power Picks Best For?
While the simplicity of the Pure Power Picks alerts caters to a broad range of traders, we believe these alerts are ideal for experienced options traders who can formulate their own trade plans around the alerts.
The alerts are a great starting point for trade idea generation. We like that Pure Power Picks spells out the trade and mentions the exact contracts worth looking at. That said, due to the volatility of the options market, traders who follow these alerts should have their own game plans.
More specifically, since the service does not issue “sell” alerts, traders should have a game plan for when they plan to cut a position (for either a profit or loss). While Pure Power Picks provides general profit targets (generally around 60%), these are not enough to allow traders to maximize upside and minimize downside.
Overall, the service is very reasonably priced and it’s fair to assume that an experienced options trader can make back the price of the service with a single alert.