Be a smart options trader. Many of my members belong to other option trading advisories. Some of these are similar to mine. And normally you have to become a member to determine if their claims and trades are reality.
So this post is to just say beware of option trading advisories. Even mine. never put money into a trade without papertrading the strategies first. Take everything said at face value and make them (and me) prove to you that they are telling the truth and that their trades do make money.
Here is an email from a member who tried another service. The name of the service is blocked out.
By the way, I had to open a XXXXX account just to see what those guys were up to. Their 100% auto-trade loss last October was pretty scary (the only thing that saved them was that they came up with 100% gain in one day on what I guess was a $10,000 investment, which was not auto-traded and brings up many other concerns).
Anyway, I’ll be cancelling that and thought you must might be interested in hearing about your “competition”. They’ve been legging into positions from the put side, which has worked out well through the summer, I’m not sure why (maybe to complete the condor, maybe being greedy for returns) but they opened 3 call legs 5-6 days before expiration last month. One of which they sold for $.06 cents and it was threatened with a $.29 buyback the Wed before expiration and they chose to ride it out. I had heartburn just watching. Nonetheless, that proved to me they’re more focused on posting returns even when it would be near impossible to follow the trades, or when they’re breaking standard condor rules and that my returns would be a very distant concern of theirs. So I’m done paying to watch that nonsense.
Scary stuff indeed.
New to the world of options selling?
Although options selling have a reputation for being risky investments that only expert traders understand, selling options can be very useful to the individual investor. If you currently limit your asset mix to traditional investments, then you’re missing out on what could be a powerful tool and opportunity for growing and protecting your net worth.
The rewards of options investing can be far greater than the potential gains of buying or selling stock. However, the risks are also greater. For those of us who love the extra challenge of option investing, it is worth every minute of time you spend. Check out our previous blog posts for best options advisory service and awesome tips on how to do option trading for a living.
So make the first step and dedicate some time to learn how to use options the smart way. Got something to share? Please feel free to leave your comments below.