In the options world, there are many people who lie,
cheat and essentially steal. However, that's not
different from almost any other business.
Often, it's a cinch to see who the phonies are. For
example, when you see someone advertising that they have
an income-producing strategy that is guaranteed to
generate 10% per month, anyone with a working brain
understands that this is not a truthful statement. Can
you imagine anyone having such a system who would offer
to share it with you for several thousand dollars? No
chance of that happening. In fact, such a 'system'
would be kept a deep, dark secret.
At other times, you discover well-known names who have
been 'teaching' options for decades. One would expect
them to be honest - or at least to offer good advice.
In a recent blog
, I took one such options 'name' to task for
simultaneously suggesting that people can make money in
options by buying calls, buying puts, selling calls and
selling puts. That's actually a true statement. The
part he neglected to mention is that the trader must
apply the correct strategy to the correct stock at the
That's a bit difficult to do. What he's trying to do is
to trap people into believing that options are cash
machines and all one has to do is sign up for his
(costly) newsletter to prosper.
The unethical players are out there. So be careful when
doing business with people you don't know. I understand
that you don't know me yet, but I intend to earn your
trust by supplying lots of useful information - at no
cost. To that end, I'd still appreciate received
questions from bivio members.
Mark D Wolfinger
Expiring Monthly: The Option Traders Journal