written by reader Zenith Trading Circle: caveat emptor

By armakusa, December 15, 2016

I subscribed to Michael Lewitt’s Zenith Trading Circle (ZTC) from Oct 1, 2016 for over two months, gingerly following each Monday’s long Put alert (less than $2,500 at risk each time). I subscribed believing, and still believe, that his tests have a high probability of identifying stocks that will eventually collapse. But from the start I had doubt, which has only increased, that his tests result in a high expected return within the relatively short period of each Put, usually 2 to 5 months. ZTC marketing says his method identifies stocks with a “94.5% chance of collapse”. But that does not mean his Put alerts have a 94.5% chance of producing a positive gain. Indeed, I have had only actual losses and paper losses. Hope springs eternal; I may eventually have a winner, maybe one that compensates for all the losers. Nevertheless, here is why I resigned and got my money back: his intermediaries at Money Map Express customer support offered to refund my money instead of answering my simple question. That is, how does Michael often achieve a purchase price that is significantly lower than the GTC price he suggests in his Monday alerts, and how might I do the same? For example, in one recent alert it was $0.06 cents for Michael or some other lucky buyer (we learned ten days later) versus $20.0 cents for me and presumably most others, the GTC price of his alert. The underlying stock was going sideways, with very little volatility, so it’s hard to understand how the Put would experience so much volatility in a short period of time. That sort of thing allows Michael to often claim gains while I only show losses. In summary, it’s not the negative returns I have experienced that cause me to advise against ZTC, it’s the unexplained mismatch between his portfolio claims and mine.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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warrenator
Irregular
December 16, 2016 2:22 pm

Hey armakusa, I share your pain! I thought about subscribing to his publication, as well. But I had the exact same experience with another options trading service I tried a few years back. I could NEVER get in at the posted entry prices they published and was never able to exit at the posted prices, either.The one I subscribed to did NOT offer a money back guarantee so I l lost a bundle. I think the only way to succeed with these “services” is to buy more time than they recommend and probably you’d have to start with a strike price closer to the money or IN the money. Probably never do as well as their posted results. Glad you got your money back, though.

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