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Motley Fool Options Review


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Motley Fool Options Logo

Our rating

4.7/5

Motley Foot Options Pros

  • Reliable Trade Alerts
  • Trader Education
  • Quality Customer Service

Motley Foot Options Cons

  • No Chatroom
  • No Money Back Guarantee


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Options trading has been gaining popularity in recent years as a way to make money in the stock market. However, the seemingly complex nature of the options market acts as a barrier to entrance for many, especially newcomers to Wall Street. 

However, as Tom Gardner and David Gardner — the brothers who founded the Motley Fool — would be happy to show you, trading options doesn’t have to be a difficult process. 

To assist beginners and expert options traders alike, the company offers the Motley Fool Options service. The service includes alerts, education, and backstage member perks, all of which are geared toward helping you make money as an options trader. 

Key Features of Motley Fool Options

The Motley Fool Options service is packed with features, all of which are designed to help you make more money through the process of trading options. Some of the most exciting features of the platform include:

Quality Alerts

There are so many options alert services online today, I’m not sure you could name them all if given five full minutes to do so. Each tells you that their alerts are better than the next. 

Of course, this service makes a similar claim, but there’s a difference — when the Fool says they’re better than the rest, they’re telling the truth, and they prove it to you with a track record that goes all the way back to the service’s inception. 

The company has been providing alerts for more than two decades, with an 84% win rate that produced results far above average returns in this period. 

Not to mention, the alerts you’ll receive are like nothing else online. 

Most alerts from other services tell you an action to take but rarely tell you the exact price at which to take it or the methodology behind the recommendation. Motley Fool fills in those blanks. 

If you receive an alert from the Motley Fool Options service telling you to buy calls, the email will also outline the stock price you should attempt to buy calls at, why the recommendation is being made, and the expected outcome of the trade. 

The email will also outline strategies to employ in order to mitigate risks. Of course, an 84% win rate is good, but that means there’s a 16% loss rate. When those losses happen, you want to limit them as much as humanly possible. The alerts you receive will show you how to limit your losses so your portfolio is never overexposed to risk. 

Here’s the general outline you’ll see with each and every alert:

  • Is This Alert for You? First, you’ll see a note that outlines the type of trader and the amount of money the trader needs to be the perfect candidate for the alert. 
  • Action. The action section outlines the action the experts at the Fool want you to take, including the type of trade, the stock, and the price. 
  • Allocation. This section outlines how much money you should allocate to the trade and the reason that amount of money is suggested. 
  • Pricing Guidance. This outlines the pricing you should get when making the trade. It is strongly suggested that you be patient and wait until the pricing outlined in the alert is available, or as close to it as possible. 

The alerts then offer a full article outlining what the person who created the alert is thinking, the strategy behind the alert, maximum gain, maximum risk, and other details. 

A Long-Term Focus

The Motley Fool has never been focused on short-term trades, and when it comes to its options service, that’s no different. Some of its options strategies have been employed for years, following along the same lines with the same price. 

This is important, because while there is an allure to day trading, the simple fact is that short-term trades have a much higher chance of ending in losses than long-term trades. 

When you log into the Options dashboard and dig around, you’ll find that the team has watched some of the stocks in the alerts since it was created, with alerts surrounding buying and selling options on those stocks throughout the service’s history. 

Options Education for Beginners and Experts

Education is crucial no matter how you plan to invest. After all, the more you know, the more likely you are to make a profit in the stock market. Titled “Options U,” the education platform offered in the Options service is second to none. 

It’s not just for beginners either. 

The training series includes three course sections with a total of 36 lessons. No matter where you are on the learning curve as an options trader, there’s something for you to learn in these courses. 

The three course sections are:

Options U: Essentials

If you’ve never traded options before, this is where you’ll want to start. This course offers nine lessons that thoroughly cover the basics of options trading. By the time you’re done with this course, you’ll know what options are, how to get permission from your broker to trade them, how to go about both buying and writing options, and more. 

The last lesson in this course is a video lesson that provides a detailed crash course on options, giving you everything you need in order to get started as a trader. 

Options U: Strategies

If you’ve traded options in the past, whether you’re a beginner, intermediate, or expert trader, you’ll want to start with Options U: Strategies. This course features 13 lessons designed to give you the ins and outs of the most successful strategies used by options traders. 

Eleven of the lessons are provided in text form, where you’ll learn about buying calls, writing covered calls, buying puts for protection, and more. Two of the lessons are video lessons that are geared toward giving you more insight on covered calls and written puts.

Options U: Masters

Once you’ve completed the Strategies course, it’s time to move on to the Options U: Masters course, where even experts will likely find they learned something useful. In this course, you’ll have access to 14 lessons on some of the most advanced, most successful strategies available to options traders. 

By the time you’re done with the Options U: Masters course, you’ll know the ins and outs of straddles, strangles, spreads, diagonal trades, collars, and more. 

Always Have a Plan

Any time you’re trading — whether you’re trading options, stocks, currency, cryptocurrency, or any other asset — it’s important to have and follow a plan. The professionals at the Motley Fool feel the same way, and they outline their plan in a monthly post to subscribers that’s literally called “Always Have a Plan.”

The Always Have a Plan article spells outs what you can expect to happen in the month ahead, including:

  • Coming Expirations. First, the article outlines the option expirations that are coming down the line, how the trades are going, and what the experts behind the service think will happen in the end. 
  • Upcoming Dividends. Next, the article shows the dividend payments that you can expect in the month ahead if you followed the alerts provided through the service. 
  • Looking Ahead. This section is a brief update of what you can expect in the month ahead. For example, if there are several open options expiring in the month ahead, the author may tell you to keep your eyes peeled for more alerts than usual.
  • Monthly Learning. Finally, the article closes with learning goals for the month. These goals are generally tied in with the alerts and types of trades being made. 

Backstage Membership

Finally, the Options service is part of what the Fool calls Backstage, a premium platform for advanced investors. As a result of the service being part of the Backstage, you’ll receive additional perks including:

  • Additional Recommendations. You’ll receive additional stock recommendations twice per month, outlining the best stock picks to consider. 
  • Quarterly Mega Rankings. This service follows opportunities in the mega-cap space. Mega-cap stocks are what the Fool calls the largest of the large caps
  • Backstage-Exclusive Livestream. The Backstage exclusive livestream is a podcast that features interviews, expert commentary, and more. 
  • Library. You’ll have access to an extensive library of videos and articles centered around the latest investing opportunities and trends. 

Advantages of Motley Fool Options

There are several reasons to consider diving into Motley Fool Options. Some of the biggest advantages to the service include:

  • Accurate, Reliable Alerts. Alert services aren’t always reliably accurate, but with the Motley Fool, accuracy is less of a concern. The company has become one of the biggest brands in alerts and Wall Street media because its users know the services are consistently accurate. 
  • Education. There are several educational platforms online that teach you the ins and outs of trading options, but most are either too convoluted to understand or not comprehensive enough. The Motley Fool found a perfect balance with Options U, creating lessons that are both easy to follow and packed with information that will help you become a successful options trader. 
  • Long-Term Focus. This can’t be stressed enough: The vast majority of alert services are designed for day traders, which adds significant risk. However, the Motley Fool teaches its subscribers to practice patience rather than jumping on a trend out of fear of missing out (FOMO). There are never trades that are opened and closed on the same day, and you’ll never be pushed to jump into what you believe is a risky trade simply because the masses are doing it. All recommendations are well thought out with a long-term view. 
  • Backstage. Finally, the Backstage pass is a fantastic added benefit. The exclusive commentary, interviews, and content available is well worth the membership fee on its own. 

Disadvantages of Motley Fool Options

We’ve painted a pretty picture, but it’s important that you know the drawbacks to a service before signing up as well. The most significant disadvantages to consider include:

  • No Chat Room. Often one of the biggest benefits to signing up for services like these is access to a community chat room where you can bounce ideas off other like-minded traders and investors. Unfortunately, no such chat room exists as part of the Options service. 
  • No Refund. The Motley Fool doesn’t provide refunds if you’re not happy with the Options service. However, if that proves to be the case, you are able to use the money you’ve paid for access to Options toward one of several other services offered by the Fool. 

How Motley Fool Options Stacks Up

Two of the most popular options alert services and tools available are Motley Fool Options and OptionSonar. Here’s how the two compare:

Motley Fool OptionsOptionSonar
Alert TriggersBased on in-depth research by the pros at Motley Fool. Based on options trading volume. 
EducationExtensive education platform with lessons for beginner, intermediate, and expert traders. None. OptionSonar points users to Option Strategies Insider for education. 
Price Normally $999 per year (promotional discounts available).Options scanning services start at $35 per month. Alerts service is $109 per month or $948 per year. 

Final Word

The Motley Fool is one of the most trusted brands on Wall Street, and for good reason. The company is right far more than it’s wrong. If you’re interested in becoming an options trader, or are already an options trader but want to up your game, Options by Motley Fool is one of the best ways to do so. 

As mentioned above, if you’re unhappy with the Options services provided by Motley Fool, you won’t be able to get a refund, but you will be able to use the money you paid for your subscription toward another service. 

The good news is that the Motley Fool offers a wide range of premium services, with some of the top options including Stock Advisor, Rule Breakers, Everlasting Stocks, among several others. Motley Fool includes a complete list of its premium services on its website.

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The Verdict

Motley Fool Options Logo

Our rating

4.7/5

Motley Foot Options Pros

  • Reliable Trade Alerts
  • Trader Education
  • Quality Customer Service

Motley Foot Options Cons

  • No Chatroom
  • No Money Back Guarantee
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Joshua Rodriguez has worked in the finance and investing industry for more than a decade. In 2012, he decided he was ready to break free from the 9 to 5 rat race. By 2013, he became his own boss and hasn’t looked back since. Today, Joshua enjoys sharing his experience and expertise with up and comers to help enrich the financial lives of the masses rather than fuel the ongoing economic divide. When he’s not writing, helping up and comers in the freelance industry, and making his own investments and wise financial decisions, Joshua enjoys spending time with his wife, son, daughter, and eight large breed dogs. See what Joshua is up to by following his Twitter or contact him through his website, CNA Finance.

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