Why Are People So Cheap?

This post has no educational value. I am just venting my frustration.

Got an email today from a member that was having a problem getting our emails. So when I investigated, it turns out that he has taken advantage of the $1 30 day trial FOUR TIMES. What a wonderful fellow (sarcasm). He went through the effort of using different email addresses and different names to create new accounts every time his 30 days was up so he would not have to pay the monthly fee.

And this is supposed to be someone who can afford to be investing? If you have thousands of dollars in the market, why would you go through all this trouble to screw me out of a few dollars a month?

You are stealing you loser. Why would you stoop so low to save a couple dollars a day?

And it’s not like he did not get any value of it. He was a member for four months and complained when he missed one email. He was obviously using the service. Hell, one good month pays for a whole year of the membership even if you only have $10,000 to invest, which is the minimum I suggest you start with.

Needless to say his account has been terminated and steps have been taken so he cannot sign up again.

Now I am going to have to waste precious time to see if this is a larger problem and many people are doing this or if this guy was the only one with no scruples, values, or decency.

On days like this, I wonder if it is worth it. It’s not like I am making millions of dollars with this site. It’s just something to keep me busy since the trades don’t take up that much time. 

Oh well, I guess it’s part of life. The sad thing is, that if others are doing this as well, I will have to do away with the $1 trial and then it will hurt the people who actually are honest enough to follow the rules.

Thanks for letting me vent. I feel a little better. I think I am going to go punch something now.

Freeze Congress Salaries Until We See How Their Laws Turn Out

In a bold move, Mayor Bloomberg of New York called to free Congress salaries. He did it in response to Congress wanting to limit Wall Street bonuses but I happen to agree with him.

I think Congress should have term limits. 4-6 years and you are done. Go back to your job/business/etc. The founders of this nation were all citizen representatives. These people in Congress today have to inclination what the common man in their district is going through. They are not informed about the issues enough to vote properly and they care about getting reelected than doing any good.

They vote their own pocketbooks. And that is a hainous crime. I am really sick of Dems and Repubs fighting and attacking one another just because of party lines. I don’t care what party you belong to but your loyalty should be to the people.

It’s obscene that Congress passed salary increases for themselves when we were in the middle of 2 wars, an economic downturn, and “on the verge of economic collapse”.

I forgot the number but the recent Congress took more days off than any previous session of Congress including the infamous “Do Nothing Congress”. They make more money and they work fewer less. are they not ashamed of themselves? Or do they sit in their private conferences and just laugh at us for allowing them to basically rob us blind?

Let’s have some accountability in Congress. Let’s make some benchmarks and have Congress’ compensation tied to those benchmarks.

• If they balance the budget, they all get $20,000 for the year.
• If the number of high school students that go to university increases by 5% then get $10,000 a year.
• If GDP is positive, then get $10,000 for the year.

We have over 10% unemployment, yet Congress, most of whom are already millionaires, makes over $200,000 a year, gets the best medical plan around, and gets all their living expenses paid for.

What a shame.

VIX at its lowest point of the year

Today the VIX, traded below 20 for the first time all year.

What does this mean? It means that the markets are calming down almost back to normal, that volatility is coming out, that wild price swings in the stock market won’t be so large, and that option premiums won’t be so juicy.

But overall, a low VIX is fine with me. I don’t like all the wild price swings.  A couple years ago there was a saying, when the VIX is high, time to buy. When the VIX is low, look out below.

When the market drops, VIX moves up and if it gets too low, the market will correct by dropping.

I don’t know how much lower it will go, but I feel it will stabilize somewhere in the area around 20. For the last couple months, it has traded between 20 and 30. A good trade has been to short the market when the VIX hits close to 20 and buy when it gets to 25. That trade might be over. But I do not expect to see it go much lower. That means the market might pull back this week.

Funny Stuff

How bad is the economy, really?
The economy is so bad that African television stations are showing ‘Sponsor an American Child’ commercials!

The economy is so bad, a picture is now only worth 200 words.

It’s so bad, Snoop Dogg had to start eating regular brownies. 

The economy is so bad, I saw the CEO of Wal-Mart shopping at Wal-Mart.

The economy is so bad, I went to my bank the other day and the teller handed me a note saying, “This is a robbery!”

The economy is so bad, George W. Bush appeared in a flight suit and declared economic recovery was complete.
The economy is so bad, Bill Gates had to switch to dial up.

The economy is so bad, Dick Cheney took his stockbroker hunting.

The economy is so bad, Dr. Seuss rose from the grave to write a new book: Green Eggs and Spam.

The economy is so bad that I went to my bank to get a loan, they said, “What a coincidence! That’s just what we were going to ask you!”
The economy is so bad, rapper 50 Cent had to change his name to 10 Cent.

The economy is so bad, Barack Obama changed his slogan to “Maybe We Can!”

The economy is so bad, my ATM gave me an IOU!

The economy is so bad that the highest-paying job in town is jury duty.

The economy is so bad I saw a man in Costco buying one roll of toilet paper.

The economy is so bad that I saw a van full of legal immigrants illegally crossing the border to Mexico.

The economy is so bad, I became a Pastafarian hoping that a meatball will appear to me.
The economy is so bad that parents in Bevery Hills are considering raising their own children.

The economy is so bad that even people who aren’t in Barack Obama’s cabinet aren’t paying taxes.

The economy is so bad I saw a polygamist with only one wife.

The economy is so bad that I saw someone using the sun to get a tan! 

The economy is so bad that wives are having sex with their husbands because they can’t afford batteries.

The economy is so bad, I saw four CEOs playing miniature golf.

The economy is so bad, Hot Wheels stock is trading higher than GM.

The economy is so bad, Obama met with three small businesses to discuss his Stimulus Plan: GM, Pfizer, and Citigroup.

It’s so bad, McDonalds is introducing the 1/4-Ouncer.

The economy’s so bad, Exxon-Mobil  laid off 25 Congressmen.

The economy is so bad, mothers in Ethiopia are telling their children, “Finish your meal! Don’t you know there are starving children in the US?”

The economy is so bad, that a prostitute asked me if she could borrow $20 until she can get back on her back.

It’s so bad, a stripper was killed when her audience showered her with rolls of pennies while she danced.

The economy is so bad, that Martha Stewart did a show on creative uses for food stamps.

The economy is so bad, Angelina Jolie adopted a child from America.

The economy is so bad, my sister had an exorcism but couldn’t afford to pay for it, and they re-possessed her!

The economy is so bad, that I bought a toaster oven and my free gift with purchase was a bank.

It’s so bad, I got a pre-declined credit card in the mail.

The economy is so bad, hobos in Beverly Hills now have to drink tap water.

The economy is so bad, Barack Obama unveiled his plan to close Guantanamo Bay for good: He’s turning it into a bank!

The economy is so bad, that the White House turkey turned down his Thanksgiving pardon– all his wealth was in stocks, and he has nothing to live for.

The economy is so bad, Sarah Palin is only shooting moose for food, not for fun.

It’s so bad, I ordered a burger at McDonalds and the kid behind the counter asked, “Can you afford fries with that?”

The economy is so bad, my niece told me she wants to dress up as a 401-K for Halloween so that she can turn invisible.

The economy is so bad, that instead of a coin toss at the beginning of the Super Bowl, they played “Rock, Paper, Scissors.”

The economy is so bad that Roy’s tigers are now eating him out of necessity.

The economy is so bad, the Treasure Island casino in Las Vegas is now managed by Somali pirates.

It’s so bad, they built an Indian reservation on a casino.

The economy is so bad, people are standing behind George Bush wherever he goes hoping for free shoes.

The economy is so bad, Michael Phelps has to share a bong.

The economy is so bad that when Bill and Hillary travel together, they now have to share a room.

The economy is so bad, a certain celebutante changed her name to “Paris Holiday Inn.”

The economy is so bad, Malia and Sasha Obama started a lemonade stand to raise money for bailouts.

It’s so bad, the Lone Ranger sold his silver bullets on Ebay.

The economy is so bad that 7 of 10 houses on Sesame Street are in foreclosure.

The economy is so bad that the only company hiring this week is the one that sends people to scrape bankers off the sidewalk on Wall Street.

It’s so bad, they renamed Wall Street “Wal-Mart Street.”

The economy is so bad, Angelina had to adopt a highway.

The US has made a new weapon that destroys people but keeps the building standing,. Its called the stock market – Jay Leno

. Do you have any idea how cheap stocks are ?? Wall Street is now being called Wal Mart Street – Jay Leno

3.. The difference between a pigeon and a London investment banker . The pigeon can still make a deposit on a BMW

4. What’s the difference between a guy who lost everything in Las Vegas and an investment banker ? -A tie

5. The problem with investment bank balance sheet is that on the left side nothing’s right and on the right side nothing’s left.

6. I want to warn people from Nigeria who might be watching our show, if you get any e mails from Washington asking for money, it’s a scam. Don’t fall for it – Jay Leno

7. Bush was asked about the credit crunch. He said it was his favourite candy bar – Jay Leno

8. The rescue bill was about 450 pages. President Bush’s copy is even thicker. They had to include pictures -Jay Leno

9. President Bush’s response was to meet some small business owners in San Antonio last week. The small business owners are General Motors, General Electric and Century 21. – Jay Leno

10. What worries me most about the credit crunch, is that if one of my cheques is returned stamped ‘insufficient funds’. I won’t know whether that refers to mine or the bank’s.

NEW STOCK MARKET TERMS

CEO –Chief Embezzlement Officer.

CFO — Corporate Fraud Officer.

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry.

VALUE INVESTING — The art of buying low and selling lower.

P/E RATIO — The percentage of investors wetting their pants as the market keeps crashing.

BROKER — What my broker has made me.

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

STOCK SPLIT — When your ex-wife and her lawyer split your assets equally between themselves..

FINANCIAL PLANNER — A guy whose phone has been disconnected.

MARKET CORRECTION — The day after you buy stocks.
CASH FLOW– The movement your money makes as it disappears down the toilet.

YAHOO — What you yell after selling it to some poor sucker for $240 per share.

WINDOWS — What you jump out of when you’re the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in use.

What A Trillion Dollars Looks Like

A member sent me this link and I really liked it so I thought I would share it here. The original site I got this from was

http://deliveriesgalore.com/2009/03/18/one-trillion-dollars/

$100

Let’s start with a simple $100 bill – nearly everyone has seen one, and most have used one at some point:

Ahh, hello Mr. Franklin…

$10,000

Now, lets take it a step further – a packet of $100 bills is less than 1/2 inch thick and is worth $10,000. This can easily fit in your pocket and can be used to buy a cheap car or a year of your kid’s tuition:

Vegas, here we come!

$1,000,000

This little pile of cash can easily fit into any backpack and weighs just about 22 lbs. Just in case you didn’t believe that those criminals in the movies couldn’t fit a million bucks in those briefcases, it’s very possible! You’re not likely to ever see this amount of cash in one place unless you work in a bank or are a high-level drug dealer:

What, you’re just gonna stand there? Get the money!

$100,000,000

Here we have $100 million – neatly fits on any standard pallet, weighing in at a little over one ton. You could stash this away in your bedroom and never work another day in your life. No one will ever see this kind of money in one place except Britney Spears and other celebrities:

That money isn’t going anywhere without a forklift…

$1,000,000,000

Now we’re talking big bucks… $1 billion – ten pallets worth of cold, hard cash. This is more than some countries’ GDP (Gross Domestic Product):

You wouldn’t even know what to do with this kind of money…

$1,000,000,000,000

Finally, here we are – one trillion dollars. That’s twelve zeros, go ahead and count ‘em! One MILLION million, or one thousand billion… This is just an obscene amount of money – the dollar value is more than all that are currently in circulation:

Can you still see the guy in the red shirt?

150 Years For Madoff

The financial news networks were busy yesterday covering the sentencing of convicted fraudster Bernard Madoff. Madoff was given the harshest penalty possible; 150 years in prison for defrauding thousands of his investors.

Luckily I was not a Madoff investor. But from what I have learned about his investors, I would not have been one of them. There was a guest on CNBC that said out loud what I was thinking.

From CNBC.com

People who invested with Bernard Madoff were greedy and happy to accept high returns without probing too much in the way these were achieved, Hugh Hendry, chief investment officer at hedge fund Eclectica, told CNBC Tuesday.

 

“I’m sympathetic for people losing money but I think this pejorative term of being greedy still applies,” Hendry told CNBC.com. “There was an implicit greed in not questioning and just accepting unnatural returns.”

“They didn’t show the requisite amount of fear that would have generated the curiosity to investigate,” he said, adding that for every one Madoff investor, there were ten who stayed on the sidelines.

For over 20 years Madoff got these people returns of 10-12% a year with NO down years. No one was complaining then. When you listen to the “victims” they talk about their life savings disappearing. They wonder how they will pay their mortgages and living expenses. A couple have already committed suicide.

I don’t want to sound mean, but everyone needs to have some common sense. Why would you put 100% of your money in any one investment/stock/advisor? That’s insane. You work hard for your money and you turn it over to someone you don’t even know? I can understand someone investing 10-20% with Madoff, but 100%? That’s just asking for trouble.

But let’s look at it from another view. Madoff lost 100% of the money invested with him. Actually, not 100% because the government is busy recovering as much as they can. But to keep the math simple let’s call it 100%. If instead, we had put our money in a mutual fund, we would have lost anywhere from 30-60% from 2007 to the end of 2008. So Madoff lost about double what the “professionals” on Wall Street lost. BUT, over the years Madoff paid off a lot more in returns than any mutual fund. If that money way withdrawn, then investors would still be ahead, even after losing 100% of their original principal.

In a coming post I want to outline some of the lesson we can learn from Bernie Madoff. One of them is that you should actually know where you money is and what it is being invested in.

My problem is with the sentence. This man got more years in jail than murders, rapists, and child molesters. Is that fair? I don’t think so. No one forced any of his “victims” to give him money. Many of them BEGGED him to take it. There were no guns or threats used.

If his victims want so much justice let them pay for his prison bill. Why stick it to the taxpayer? Let the government use the money they recover from Bernie to pay for the cost of his incarceration. Use my tax money to keep the psychopath killers behind bars. Madoff is no threat to me.

One of the problems in today’s society is that no one want to take responsibility for themselves.

• You lost my money so it’s your fault. Even though I signed paperwork saying that you could lose it.
• You gave me a loan for a house I knew I couldn’t afford. Now I want a modification so I can stay in the house on which I am no longer making payments.
• I had 4 children out of wedlock with 4 different men who all left me and I can’t get a job because I am too fat to move so the government should pay for my house, my bills, my food, and give me money in the form of unemployment benefits and disability. ( I am not making this up. This woman once rented a house from me.  Section 8 pay for the rent and utilities. She got food stamps, and unemployment and disability. She was so fat that she could not go up the stairwell to get to the second floor.)
• I could go on and on.

That’s why I LOVE my members. They are people who want to invest their own money. They want to work hard and succeed without handouts or excuses.  They are one of the reasons I created my site – to help those that want to succeed.

Bernie, your lack of ethics is appalling. You should be punished severly. But 150 years is a bit much.

Is This Really Bad Advice?

I like to think of myself as an honest, giving person. But then we probably all do.

And as the research shows more than 60% of all drivers think their driving skills are above average.

Ever since I started optiongenius.com, 99% of the emails and comments have been favorable. Even the people who become members and drop out, tell me it is because it is something on their end and not because of the service.

But then again, there are those that do not believe me or question my motives. Which is fine. In fact, I say people should not believe me when they sign up for my site. Heck, I wouldn’t believe it if someone told me they could make 100% a year with low risk – until I saw it for myself.

That’s why I offer the first 30 days of membership for just $1. I think that is a fair price to see what the site is about and to see for yourself if it is worth it or not.

Plus if you think the site sucks and I am full of it, I’ll give you your $1 back. What else can I do?

On top of that, my service has the lowest monthly fee of any of the other option newsletters I have come across. Several of my members tell me they have been members of other services in the past and were paying a whole lot more than what I charge  – some charge 4 times more than I charge.

So then when I got the following email I was confused as how I should respond.

I’ve been pondering your emails and subsequent service.  Needless to say, I’m skeptical and not in a position to be throwing away $50/mo month after month, although I’d be more than willing to pay that fee if I had an opportunity to overcome my skepticism and, more often than not, I came out ahead and, thus, the return would pay the fee and STILL subsidize my income.
 
What, if anything, can you do to help me?

Here was my response:

I thought about your email and I dont think there is much I can do for you. If you are not willing or cannot afford to spend $50 a month on your own education, then you should not be managing your own money.
 
Take Warren Buffet’s advice: put your money in an index fund and do what you do best.

Maybe I should have put it in different words, but I think I said what I meant. Here was her response:

Really bad advice… and, taking into account that emails can come across in a different way than intended, I’d still say that this comes across as very condescending and negative.
 
Although the information I gave you is absolutely true, I was more wanting to see what kind of person YOU are before entrusting my “education” (in essence, being willing to “follow” you and learn along the way) to you.  See, I’m a particular kind of person, Allen, and I conduct myself and ALL of my business ventures in a given manner — openly, honestly, and with the utmost integrity.  I’m not just looking to capitalize on an education or God-given talent by asking people (who, by the way, don’t even know me from “Adam” — or “Eve”, as the case may be) to trust ME… in exchange for their money every month.
 
Needless to say, I was somewhat captivated by your site and what appeared to be your interest in truly helping others (so be it if you made some money from it; that’s a small price to pay if you can come out ahead in the long-run).  Unfortunately, a short, curt, unempathetic response — regardless how much or how little you may know (again, it’s only your word) — isn’t really the best strategy.  I could certainly give you some words of wisdom in this area (gained from MY expertise).  That, too, however, would be negative and nasty — and I prefer to rise above that.
 
Oh, and I WILL do what I do best!

I did not respond.

So is this a case of someone looking for something for nothing, or did I take here intial request the wrong way? I don’t know. What I do know is that there are plenty of others out there willing to take every penny you have to “educate” you in options or to help you get rich with their “research” and “picks”.

I guess there is no point to this post. I just wanted to get it off my chest. She asks, “what can you do for me?”

Hello? Show me someone else you can show you how to make 10% a month returns. Heck, I’ve been to $10,000 seminars where all they did was sell you more stuff and I was glad to go.

When you go to college, what do you spend? $100,ooo? More? And are you taught how to be financially independent? NO! Are you taught proper money management? NO! Are you taught real world skills that an make you a solid income from home with limited capital and low risk? NO!

Even if you take finance courses, you are taught that the market is efficient so you shouldn’t bother trying to get above average returns! And that’s after paying $100,000. All I am asking is $1.

Is that too much to ask?

My First Post

This is the first of what I hope will be a very many posts in which I share my thoughts, ideas, and trades with those of you who want to learn how to make money selling options.

Subscribe to my RSS feed, send me a comment and do whatever else people are supposed to do when reading a blog.

This is all new to me so as I get better at it there will be more interaction and hopefully a blog that you will enjoy to read an visit. Or… I just might crash the software and these pages will dissapear forever. I guess we will just wait and see.