Option Pundit newsletter

[grass_hopper]

Hi Y'all!

Has anyone heard of or even used OptionTrading | Powerful OptionTrading Strategies for Consistent Income services?
They show some amazing performance (going up 14 times since 2007) and I wonder if these numbers are real or some back tested, simulated, or selected winning trades.
They also charge ~$150/mo for subscription and $50 to get to a waiting list to subscribe! That does not make any sense.
I have a strong suspicion that this is too good to be true but I may be wrong.

Thanks,
GH

 

[AfternoonT]

Hi Y'all!

Has anyone heard of or even used OptionTrading | Powerful OptionTrading Strategies for Consistent Income services?
They show some amazing performance (going up 14 times since 2007) and I wonder if these numbers are real or some back tested, simulated, or selected winning trades.
They also charge ~$150/mo for subscription and $50 to get to a waiting list to subscribe! That does not make any sense.
I have a strong suspicion that this is too good to be true but I may be wrong.

Thanks,
GH

Past perfomrance is no guide to future profitability....

 

[grass_hopper]

Past perfomrance is no guide to future profitability....

What a great response! Thank you so much! This was a missing link I was searching for so desperately.

Dude, seriously, if you don't know anything about the subject why comment on it?

 

[Martinghoul]

It didn't look too egregious at first glance when I looked at it. Very hard to tell without seeing the specific trades. Moreover, I don't like the fact that some months' performance figures were missing (what's "chillout" and "TBU"?). So tread carefully.

 

[grass_hopper]

It didn't look too egregious at first glance when I looked at it. Very hard to tell without seeing the specific trades. Moreover, I don't like the fact that some months' performance figures were missing (what's "chillout" and "TBU"?). So tread carefully.

"chillout" refers to Dec'07. They made so much in previous months that they decided to take a month off. I would not blame them for that.
"TBU" is probably "to be updated".

Last published month (Jan'12) has negative performance even though the market was up. Not a good sign. Did they switch from back-testing or paper trading to real money and lost?

What bothers me is the lack of names behind to site and this strange "waiting list" to subscribe and an extra fee you have to pay to get on the list. Also, no negative feedback of any kind. Only praises.

 

[AfternoonT]

What a great response! Thank you so much! This was a missing link I was searching for so desperately.

Dude, seriously, if you don't know anything about the subject why comment on it?

Hi there,

Specifically, I was pointing you towards the dates they had chosen to present their success.Post 2007 and the credit crunch, it was relatively easy to make money because market was oversold...

Good luck,

AfternoonT

 

[Martinghoul]

Hi there,

Specifically, I was pointing you towards the dates they had chosen to present their success.Post 2007 and the credit crunch, it was relatively easy to make money because market was oversold...

Good luck,

AfternoonT

Actually, the crisis was at its worst during 2008 and early 2009. They have apparently done well during that period.

 

[grass_hopper]

Actually, the crisis was at its worst during 2008 and early 2009. They have apparently done well during that period.

They are using non-directional strategies that work well in volatile times but probably not as good currently - down in January.

 

[RPEX]

In their blog key words i see the most prominent ones are: Iron Condor; Credit Spread; covered call. I suppose its a mixture of these strategies along with some dodgy accounting* that they get those performance figures.

*Like Howard's strange way of calculating his return on risk.

 

[grass_hopper]

In their blog key words i see the most prominent ones are: Iron Condor; Credit Spread; covered call. I suppose its a mixture of these strategies along with some dodgy accounting* that they get those performance figures.

*Like Howard's strange way of calculating his return on risk.

I don't know who Howard is but there is definitely a possibility of some funny accounting as well.
I know about one promoter who sold basic covered calls strategy to unsuspected public under the guise of "creative" accounting rules. All premiums from the calls were booked immediately as "income" and all stock losses were ignored until the stock was sold.