James Altucher’s Secret Income Pitch

By haughlaw, October 22, 2017

I subscribe to Altucher’s newsletter which was a modest amount. As with all these services, I now am inundated with new, more expensive services. It is somewhat annoying but also somewhat informative. I was really confused by this promotion when it shows him picking a couple strangers at random and show them how to make Instant Cash in a matter of minutes. Poof, you have money in your account. He is selling naked puts. However, i looked more closely at the first two examples he does and I am really confused. I am familiar with options but not an expert. I have always read that when selling naked puts, you should chose a strike under the current stock price. And of course, be ready to own it if exercises. You hope the stock is range bound or heading up.

However, in his examples he is selling puts higher than the current price. Although at the time of sale, if immediately exercised it would still be slightly profitable due to the intrinsic value. However, here is what happened with one after i went back to my charts and reconstructed what could happen. On 8/15/17, AAPL was at 161.62 when he sold the 9/27/17 165 put for 6.45. Three days later, AAPL hit a low of 155.11. Over the next two weeks or so it went back up to 164.94 but then dropped to a low of 149.99 before expiration. So within 2 days, unless you traded out right away, I see this as a loser trade. Am i missing something?

The second example is the same thing with DIS, which was at 101.82 at time of sale of put. On 8/15/17 he sold the 9/29/17 104 put for 3.20. DIS went to high of 103.45 on 8/30/17, then dropped to a low of 96.26 on 9/9/17 and closed at 98.57 on expiration date. Again, I see this as a loser trade.
Am i missing something? Anyone using this service at $2000/year? Or any other of his services? Any input or correction of my thinking is welcome. Thanks.

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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catherine
Irregular
👍176
catherine

Seems to me what you are “missing” is the greed and hope that would cause you to believe this service could be worth $2,000.
You’ll continue to get these offers for the more expensive products, probably with the “guarantee” that if you don’t make money, you’ll get a 2nd year membership free…. Stay cautious!

Diane
Guest
Diane

the guarantee is not “IF” you don’t make 2000 per month…. the guarantee is “IF” he doesn’t SHOW you 2000 in profitable trades per month- very different.

Mike
Guest
Mike

What’s the difference? If Altucher provides trades that are profitable but the subscriber doesn’t elect to make it, that isn’t the service’s fault.

Dan
Guest
Dan

What he doesn’t cover clearly in his ads is that you have to have the full purchase price of the underlying stock left in reserve in your account to make the naked put trade. His account on his ads has 651K in it. He recommends having at least 20K in yours and never calls it what it is…selling naked puts. Most of his trades require 20 to 30K be left in your account which means there are some trades you can’t make because you are underfunded and, if you do one of his trades, you’ll have no funds left to… Read more »

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Diane
Guest
Diane

I like the guy- he’s interesting. lets see how it plays out, you can also do 3 months but no free computer 🙁

@BXGVS
Guest

I knew I saw that option! I know I can afford that before the 20th, I’m too Up for this! James is highly respected.

liberallez
Member
👍54
liberallez

James is a doofus who has turned himself into a shill for the newsletter scammers!! Now, suddenly, he’s a “millionaire expert” (pushing other people’s scams.)
I’ve seen this same option dodge played by other “experts” in other venues (sidewalks, restaurants, etc.) and now it’s something James has created????
James is “highly respected” by his fellow con artists!!

robert
Guest
robert

Hi , I have joined his subscription and have cancelled it right away costing me 550 dollars for a 3 month subsription. It is not a scam but it will only work when you have at least 14000 dollars to play with. This “small “detail they forget to say once you order. You earn money with selling puts. In my case i had 3500 dollars to play with. With this I was able to buy 1 recommended put , earning 150 dollars. the put expired and had no obligation to buy the stock. So in my case I could max… Read more »

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Mike
Guest
Mike

Thanks for the reply, Robert. It’s probably me, but your numbers aren’t adding up.
Your first trade made $150. You said that equals $450 after 3 months. But that means only 1 trade per month. Doesn’t the program offer weekly trades? Assuming it does, and assuming the average profit is $150, that’s $600 per month, $1,800 after 3 months. Also, I would think the $150 profit per trade is likely on the low side.
One question: how many recommended trades per week are given?

Mohammad Ali Hashmi
Guest
Mohammad Ali Hashmi

with Robert’s capital, he can only trade once a month and gain $150 which adds up to $450 after 3 months . I saw jame’s ad yesterday and was doing some research on the guy before deciding to join the 3 month program.

@BXGVS
Guest

Wow. That’s super deceiving? And no refunds. And they make it so simple for you to order (them to pocket YOUR money). And, that’s probably why they were using James’s account in the public experiments, and they computer he was using says $0.00? But, that was his earnings of $0, not his funds balance. SMH

Paul Fendler
Guest
Paul Fendler

Unfortunately, you need a LOT more than $14,000. So many of the trades go the wrong way, you end up holding more and more stock. You can sell the stock before they recommend you do in order to stay liquid, but you end up losing money on the trade. I’ve been using the service 5-6 months and I think I’m a little better than break even. I still like James a lot as a person but so much of this service is not as advertised I’m a bit disappointed.

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Jeff Reynolds
Guest
Jeff Reynolds

I bought into his first teaser Atlchur report ” found almost nothing of real substance. but good reading.. yes.. I almost pulled the trigger on the Altucher’s Secret Income , but after reading several reports, it seems like a waste . I went ahead and jumped in on the crypto trader report he is pitching . First disappointment, the scripted teaser ad stated he will give his weekly pics, but turns out its only one report a month. So tag me in April 2018 and I will let you know if it was worth it. ( BTW if you click… Read more »

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Tina
Guest
Tina

I noticed the same thing about the Crypto Trader, and because he is so sales tacky I opted to believe he wasn’t being completely honest about his service. I want to hear from people out actually getting some results.

DarkSyde
Guest
DarkSyde

I’m a subscriber of the crypto report. I’ve divided the price up between two other investors so the premium was cheaper. I like the information we’ve received thus far but remember this particular report isn’t for instant gains it’s for creating wealth over a 3-5 year period based on how much of a coin you own. With that being the case and with the coins we’ve all purchased thus far that have actually been extremely stable versus other garbage coins that get a lot of hype I’m absolutely satisfied with this report but of course won’t know if it’s worth… Read more »

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Dan
Guest
Dan

Please see my reply to Mike, who replied to Diane’s comment dated Oct 26, 2017. I screwed up and spent the 2 grand. I also did a trial on his crypto report but got my money back. Bitcoin was going to 100K by the end of 2018 at that time according to him. These services advice change like the wind. You can get equal or better advice on youtube for FREE!

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alansd
Member
👍8
alansd

I have nit gotten one useful idea on crypto from this self called comedian,not one
Woul loved your get my money back and unsubscribe

Brian
Guest

Charge-back the money by calling the card customer service number you used to buy the subscription. Contest the charge based on the grounds that his marketing is deceptive and does not deliver the content as promised. When enough consumers do this, the card brands will eventually shut him down. He’ll only be able to accept crypto…. But wait, that already happened to him! And he made it seem as if he designed the sale of his book a few years back that way on purpose. Rumplestiltskin. Altucher is a shameless, self aggrandized marketer with little substance who has no qualm… Read more »

Alan S David
Guest
Alan S David

i ubsubscribed and got a refund.Thankful for no more emails from this faker.

Peter
Guest
Peter

Dear Reader, Thank you for contacting me. I have received your request to cancel your subscription and I am taking care of it today. We appreciate you taking the time to give it a shot. You will receive a full refund of $89.00. This will be refunded via the original payment source provided. Please allow 3-5 business days for credit card refunds. Check refunds may take up to three weeks to be returned. A list of all our financial services can be found on our website at http://www.chooseyourselffinancial.com If you have any other questions or concerns, please contact our customer… Read more »

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@BXGVS
Guest

Yeah, I read above you vitally need a lot of money to invest which they don’t tell you for some reason. Anyone can send reports in crypto, smh. Thanks.

Ebenezer
Guest
Ebenezer

So, what’s the outcome?

scott
Guest
scott

Jeff – any update on the Crypto trader?

Pete
Guest
Pete

Can any one tell me Altucher’s Crypto Trader recommendation he claims is worth .24 cents and will soon skyrocket.

Alan S David
Guest
Alan S David

the only crypto around that price that looks interesting is LRC
loopring ethereum
I unsubscribed to Altucher and got a refund.One sales pitch after another was too muvh crap to wade through.

Adam
Guest
Adam

I was thinking about subscribing to “Altucher’s Secret Income” in order to take the opposite side of these trades, buying the puts that newsletter readers are being urged to sell, not because I think the trades recommended are necessarily bad ones, but because a bunch of people selling puts with the same underlying, strike price and expiration at the market open on the same date is likely to move the price of the recommended option. In particular, I was thinking of entering combination orders: buy the put, sell the matching call, buy the underlying stock, and require a tiny profit… Read more »

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Lawrence L
Guest

Buying and selling stock options seems more the playground of the seasoned floor person whose market trading experience can handle the calculations easily because of their familiarity with putting on endless trades. Total exposure to the details of placing trades would give ease of handling and insight to whether or not one is reasonable to make. Altucher’s gimmicky attraction using a stranger on the street is based on the naievete that the money is awarded immediately and is yours after the expiration time period has passed. They don’t go into the details of what transpires if the option chosen goes… Read more »

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Jack
Guest
Jack

Adam, I think the spread on the options will more than eat up any potential profit. Floor traders, who have a membership at the exchange may be able to capitalize on these opportunities because there cost is so low relative to what we retail traders pay. If you do spot an occasional trade with a decent profit, I would expect the opportunity would not last long. You would need a fast trigger finger to catch these few trades before the floor spotted and took the trade.

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Terri Skinner
Guest
Terri Skinner

To: http://www.gumshoe.com 4/08/2018 James’ pitch threw me for a loop. I was assured that NO money would be needed to make the trades and that I’d make $500-$700 on the put trades. And then find out that I need $14,000 to open my options account to be able to trade or $3,500 account to make smaller trades, smaller profits. OH NO, I’m up shits Creek. I don’t have any money to make the trades, and I’ve gotten involved with a LIFETIME purchase price for his “Secret Income” Plan. OMG. I’m freaked. I only have the money for the purchase because… Read more »

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Travis Johnson, Stock Gumshoe
Admin
👍12071

That’s terrible, Terri — yes, the fact that people sell “option selling” strategies as “free income” is unconscionable… if you’re selling put options, you’re essentially selling insurance, and selling insurance requires a large pool of capital to ensure that you can back up the claims if something bad happens. Options newsletters often disappoint in real life, too, because you can’t suggest that 500 people all enter the same illiquid trade at the same time without blowing up the price, but they especially disappoint when it turns out that they were selling a magic system to people who don’t know the… Read more »

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Jeryl Beard
Guest
Jeryl Beard

Terri, You definitely need to cancel your subscription from this weasel. Hopefully there’s still time left to allow that. I’m sick of all the weasels at Agora Financial and the likes. If they can skim just a little from a lot of of us, they get fat. Truth is if “they” can make much more money peddling their subscription services to us than they make following their own financial advice. Good Luck!!

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Juan
Guest
Juan

I called customer service before deciding to buy the Secret Income. They told me that the recommended amount for it to work is $20,000 which I didn’t have (that was about a year ago). I think that they must give this information in the FAQ and not only when you call and ask.

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Alan S David
Guest
Alan S David

one sales pitch after another, daily even. no money made here or ideas on how to make any. Waste of time and cash

alansd
Guest
alansd

I will no longer consider anything from agora financial.thevonly saving grace us that I do get a refund from them

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dezza
Guest
dezza

How did you get your refund for the Altucher report? Who do you have to contact as I read another post somewhere saying they make it really difficult to get a refund

Jeryl Beard
Guest
Jeryl Beard

Wasn’t hard. Just call the phone number they supplied during the business hours for east coast.

Alan S David
Guest
Alan S David

i called them

Alan S David
Guest
Alan S David

for a refund you have to call the number on the web page to cancel

bottomdweller
Member
👍2
bottomdweller

Ay Dave, I just joined the crypto one, also get sick of all the other sales talk, Does he ever give out anything that can make money period? I’m in for three months or 550.00 Bucks. Will see and then cancel before 3 months ends if no good. Its a shame all those smarts he has just to scam us? Hard for me to believe it, will see. Saw the main list and I could have made that list myself other than a few cheap ones which could turn out. I read another scam who knows that its all going… Read more »

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Juan
Guest
Juan

I called customer service before deciding to buy the Altucher’s Secret Income. They told me that the recommended amount for it to work is $20,000 which I didn’t have (that was about a year ago). I think that they must give this information in the FAQ and not only when you call and ask. So I kept on the loop and joined another one of his advertised options called The Million Dollar Project (by Bob Byrne) where they give information related to stocks that are going to have a good rise using a strategy called special occasions trading. I also… Read more »

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Juan
Guest
Juan

It is special situations and not special ocassions.

Stacey R
Guest
Stacey R

I have made some money from his trades but currently one of his trade recommendations isn’t in the portfolio and unfortunately the price has tanked with this recent market downswing so in a couple weeks I will likely be owning the stock at a not so great price compared to where it will be on expiration, however it is a good company and stock for the long term. This has happened one other time but again, it was a good stock and I have made my money back. What I don’t like is his customer service NEVER answers my questions.… Read more »

Daniel
Guest
Daniel

Am I that immune to boredom? I am a fast reader and occasional proofreader of scientific research articles, maybe I became resistant to the hypnotic wordy offer that says: “Also, you could do this with almost any amount to start… but I really feel it’s going to work best for you if you’ve already got at least $20,000 in cash in your account.” towards the fourth fifth of the far TOO long page. I feel like I’m the only biped on Earth who read it. I also feel that what he feels will work best for you is his way… Read more »