Options Service for rookie…which one?
by xiexgp | September 10, 2014 10:38 am
Hi guys,
I’m a Forex and Stock trader.
I’ve started to study options[1] (classics and weekly).
I’d like to start to invest with this kind of instrument and I was thinking to subscribe to a service.
There are many around and reading the unofficial reviews on internet the most doesn’t even reach the half of the gains they usually declare on their websites.
I know Shaeffer Research (but never tried) and Bottarelli[2] (red very bad feedback from who tried).
Which one you can suggest me? I’m looking for 2/3 trades/week and something that doesn’t cost 000 of $.
Thanks for the help!
Ruben
Endnotes:
- options: https://www.stockgumshoe.com/tag/options/
- Bottarelli: https://www.stockgumshoe.com/tag/bottarelli/
Source URL: https://www.stockgumshoe.com/2014/09/microblog-options-service-for-rookie-which-one/
There’s a large problem that causes most options newsletters to disappoint — most options on individual stocks are far too illiquid to absorb even a few hundred new people trying to make a trade over the same couple of days without dramatically impacting the option pricing. Some megacap stocks and indexes can handle it, but they also tend not to be volatile enough to generate the huge options gains that many traders, particularly new traders, are looking for, so a lot of newsletters and trading services shy away from them because they’re not sexy enough.
I don’t know if there are any options services that work really well consistently — those that are income-oriented and sell put options or do covered calls look like they’re more conservative, but in many cases they’ll run up against the same problem… once they’re successful enough to have a couple thousand subscribers, it stops working. Some price their services high in part to try to keep the number of traders low, but services that intentionally manage their subscriber count to be very low are rare indeed — everyone wants more subscribers.
Sorry I can’t point you to a specific service, but those are some pitfalls to keep in mind — several folks have opined that options are like heroin, they can make you feel almost impossibly good for a while but they inevitably cause decay and decline and will kill you in the end. I dabble in them myself (options, not heroin), but that’s my gambling money… to be good at it I expect you’ll have to be very unemotional and disciplined in trading, which is hard for all of us. Best of luck.
Thanks for your reply!
I understand the issues related, that are same of many subscription services.
Maybe I’ll look for some good training and start to pick up options by myself in the future 😉
Ruben, The ugly reality is that most options plays lose money. It doesn’t matter what advisory you use, you yourself have to have a solid understanding of the four or five key points in making an options trade, especially the importance of volatility and your exit point. You should be extremely cautious and keep your initial trades small until you figure out what you’re doing. Good luck!