Buttonwood / gold options

[trendie]

Interesting conversation this afternoon.
Options advisors.
Based in Panama.
Pushing buying OTM (out of the money) gold options.
current price 920, give or take.
they recommend buying 1065 calls.
fees, wait for it, $198 a contract.

this cant possibly be legit can it?

 

[MrGecko]

Just because it's from Panama doesn't mean its dodgy - alot of money out there.

But fees are outrageous, and the name makes me suspicious - perhaps trying to get some association with / from the economist (magazine)?

 

[anley]

Well, they'll view it as a legit way to steal your money

 

[gooseman]

Interesting conversation this afternoon.
Options advisors.
Based in Panama.
Pushing buying OTM (out of the money) gold options.
current price 920, give or take.
they recommend buying 1065 calls.
fees, wait for it, $198 a contract.

this cant possibly be legit can it?

what expiry?

 

[trendie]

what expiry?

Apr-09.

 

[anley]

No, just because it is in Panama it doesn't mean they're dodgy.

But
1) how do you know they're in Panama? Maybe just their bank is and they're located 1000s miles away, somewhere nice and safe, not easily traceable

2) Accepting cold calls from brokers is 99% of the time a very easy way to lose money

3) For the marks that take the (greed) bait, why deal with an unothorised 'broker' in somewhat of a financial cesspool of a country when you can deal with an FSA or SEC regulated one

4) And possibly the most important, why would anyone get involved in complex financial instruments when chances are they know nothing about them. Case in point, if they did they'd realise they could get the $198 commission for about $2 using a fully regulated broker like IB.

 

[trendie]

Well, they'll view it as a legit way to steal your money

While I can appreciate all things Panamanian arent iffy, they arent regulated by the SEC are they? that bothers me.

I personally would only trade options by an FSA-regulated company with UK offices, bound by UK laws.
As I didnt tell them I actual trade full-time, I thought it funny when they mentioned that I could double or treble my money, pandering to my greed, without pointing out the risks associated with the downside.

EDIT: our posts crossed in the ether, anley. agree with your post above.

 

[gooseman]

that's pretty much fair value although the 1065 calls aren't listed i don't think (on comex) and call skew is pretty bid.

 

[MrGecko]

is the fees (i.e. commision) that are $198 or is that the price of the contract?

 

[trendie]

is the fees (i.e. commision) that are $198 or is that the price of the contract?

just the fees.
license to churn the account.

 

[MrGecko]

then how much are they selling the options for?

 

[trendie]

then how much are they selling the options for?

they're constantly fluctuating.
they wanted me to open an account to get this info.
so I have no independent verification of their prices.

actually, where would I get historical option prices?

 

[nabtower]

Hi Just came across this forum through Google as I had had a call from a Buttonwood advisor and it certainly sounded good and an easy way to make money in this current climate. However when I tried the toll-free number from Australia it wouldn't connect and even when I tried the actually USA number it said that the number had been disconnected - so maybe not such a great company to deal with????
Nicola

 

[nabtower]

Costs for Options

they're constantly fluctuating.
they wanted me to open an account to get this info.
so I have no independent verification of their prices.

actually, where would I get historical option prices?

I was told that it was a minimum investment of US$3000 and that it was $1000 per option and at the moment your $3k would be controlling about $296K worth of gold!
Nicola

 

[anley]

Hi Just came across this forum through Google as I had had a call from a Buttonwood advisor and it certainly sounded good and an easy way to make money in this current climate.

What, you think they're going to tell you anything different?

Invest money with these thieves, and make no bones about it, thieves is what they are and you'll lose it all.

Sure;y everyone here who's thinking about investing with them should look in the mirror. I mean strangers calling you about exoctic investments that can make you easy money

 

[eddybond]

I got the same call from the same company .I have not been able to get any proper info therefore ill be looking for a broker .The idea of trading gold futures is interesting to me but unfortunatly im vary new at this and need time to learn

 

[nabtower]

I got the same call from the same company .I have not been able to get any proper info therefore ill be looking for a broker .The idea of trading gold futures is interesting to me but unfortunatly im vary new at this and need time to learn

Hi
I have now told them to stop calling me! I am currently looking into IG Markets and account with their CFD's - at the moment you can get a demo account with $100,000 to practice with for 14 days so that maybe worth looking into.