Author/Editor
Bob Czeschin
Description
Overall Rating
Rating: 2.5/5. From 6 votes.
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2.3
Rating from 27 votes
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Investment Performance
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Quality Of Writing/Analysis
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Value For Price
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Customer Service
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OIL OPTIONS HOTLINE
Bob Czeschin & Meyer Eisner, Editors
Jaguar Investment Svcs., Hong Kong; Pubishers
Dad began subscribing to OOH 5 years ago, and I placed the trades for him. Then I inherited OOH last last year, sold all options, and have been sitting on the sidelines watching ever since. Initial sub cost is $5000/yr, then $2500 thereafter on special renewal discounts. You can make lots of money in good years…$100K or more in a really good year…and lose plenty in bad years. Bob picks the stock and Meyer picks the option. Every Monday morning there is an email with a buy reco…cost of trade ranges from $1500 to $4500, averaging $2700 each. Since Bob is an energy bull, recos are usually calls. During corrections, he will recommend puts, but last fall he didn’t know which way to turn and recommended straddles, strangles, and calendar spreads. Bob is enthusiastic about the potential of each trade…his indicators habitually pointing to a 100% or more anticipated gain within the next 6 months. Broker instructions are clear. Strategy is detailed and equally clear. One is then somewhat surprised when 6 weeks later he recommends selling this likely 100% or more winner at a 35% profit because “it’s well ITM and no longer offering decent leverage, and leverage is what options trading is all about.” Oh well, a 35% gain beats a 100% loss which is where it could be 6 weeks later. So how is OOH doing in 2009?
Sold trades:
Options were held from 2 to 39 weeks, 15 weeks on average
13 trades expired worthless
23 trades were sold thru 6.29…G/L ranged from a 38% loss to 181% gain (13 had gains from 61% and up)
Total realized gain thus far this year is $2000
Open trades:
There are 21 open trades…all calls. 20 of 21 are showing a loss…3 down 100% & 15 down 53% to 97%. #21, last week’s reco, is up 7%.
Total unrealized loss on all 21 open trades is $31,600; and that’s a lot of lost capital any which way you slice the cake. So far, 2009 is not shaping up to be a good year, although the 3 months after the market low in March were very good to the OOH options. To minimize losses, it is necessary that the subscriber set a loss limit, whatever is comfortable, and sell when the limit is hit. Don’t wait for Bob’s email as he will always let an option slide to zero on the theory that a 20c option can rise from the dead right up to and including the day it expires…a theory which has been proven correct a couple of times in the past 5 years. And…if one only knew when a big, bad correction was about to cut one off at the knees, it would be advisable to put Bob’s buy recos on hold. But since the non-chart reading novice can never see a correction coming around the bend, and curiously, neither can Bob, go ahead and buy every reco but be ready to sell when you hit your loss limit. In conclusion, there’s a lot of money to be made in OOH but only if, as Bob says, “the winners outnumber the losers.” OOH gets a good rating from me because the good years are so very, very good.
I don’t know nor do I care how well Oil Options may have performed in the past. All I can tell you is for the past 6 months Bob’s recommendations have been total junk. 99% losses on nearly all recos over the past 6 months. Some major and I mean MAJOR misses during the run up and shortly after the election. Each week recommendations on new positions come out with never a reference to the past positions that are tanking. Contact customer service and the reply is sometimes days. Sometimes the recommendations come out hours after the market has already opened. Like I said I do not know the past performance and I don’t care. You are only as good as your last recommendation and so far for the past 6 months Bob’s recos have flat out been terrible. Absolutely terrible.