Option Spread Trading

[DezertDawg]

Can someone please give me some guidance on this type of trading and it's positives and negatives. I found a guy on the web named Jeffrey Ziegler who is a self proclaimed expert, however it would cost me $995 to find out how much of an expert he may be. I am always suspicious of the so called gurus who are spending more time marketing their education than practicing their trade.

DezertDawg

 

[tech_trader]

Can someone please give me some guidance on this type of trading and it's positives and negatives. I found a guy on the web named Jeffrey Ziegler who is a self proclaimed expert, however it would cost me $995 to find out how much of an expert he may be. I am always suspicious of the so called gurus who are spending more time marketing their education than practicing their trade.

DezertDawg

The best use of your money is on Sheldon Natenburgs "Option Volatility and Pricing". That book will likely teach you everything that Jeffrey Ziegler will.

 

[jetski]

ttt

 

[Dann055]

Jeffrey Ziegler

Can someone please give me some guidance on this type of trading and it's positives and negatives. I found a guy on the web named Jeffrey Ziegler who is a self proclaimed expert, however it would cost me $995 to find out how much of an expert he may be. I am always suspicious of the so called gurus who are spending more time marketing their education than practicing their trade.

DezertDawg

Be extremely careful with this service. In short, it's a complete sham. We subscribed to Jeffrey Ziegler latest version of this service called Option Spread Trading Made Simple. After studying his system and putting it to use, we lost more money than any other trading system on the market.

In any trading system you need to clearly defined rules. The first is when to get into a trade and the second is when to exit a trade. Entering a trade is easy. However knowing when to get out is what determines success. This is where Jeffrey Ziegler's system hangs you out to dry. His exit strategies are all WRONG. Plain and simple, whether you use math, charts, support / resistance or other technical data points, implementing his exit rules will cause you to lose money and lots of it.

Look, you'll need to make your own decision but I will never recommend any reincarnated version of Jeff's system It is dangerous and will cause you to lose money. Also be very careful in that Jeffrey is a great sales person. He tries to get you to buy his initial training and then will try to sell you all sorts of additional services such as priority access to him. Of course all come at additional costs and when you add up the trade losses with the price of his debunked service, you're better off at the crap tables in Vegas.

Lastly, I tried to trade along with Jeff where he gives "entry points" in his coaching videos. All of the trades, and I mean every single trade was a loss. I am stunned that the SEC allows this guy to stay in business.

Be careful.

 

[WklyOptions]

Can someone please give me some guidance on this type of trading and it's positives and negatives. I found a guy on the web named Jeffrey Ziegler who is a self proclaimed expert, however it would cost me $995 to find out how much of an expert he may be. I am always suspicious of the so called gurus who are spending more time marketing their education than practicing their trade.

DezertDawg

Hi, DD,

Agree w previous posts. If you have the risk capital and the time to trade options for extra income, there are several potential options newsletters/services. Note - these are not endorsements (or affiliations) that I am making. I only post these b/c of the marketing I've seen.

It will be up to you to do the due diligence, research, ask key questions directly to the main persons, etc:

1. Bill Poulus - Instant Options Income (primarily weekly options selling far out-of-the-money options) - objective = try generate 2% - 10% per wk. Price???
2. Amber Hestla - Income Trader - Put selling newsletter using far out-of-the-money put options against fundamentally "strong" companies' stock prices. Objective = 25% to 50% annualized returns. Price???
3. Amber Hestla - Maximum Income - using Covered Call strategies on strong companies. Objective = 25%+ annualized. Price???
4. TradingActionPatterns - swing trading on US-listed options w duration 2 wks to 10 wks. Objective = 25%+ per trade. Price???
5. Radioactive Trading - long-only stock trading with married puts plus income methods. Duration weeks to months. Objective = 15% per trade. Price???

I'm sure there are several other options-income newsletters/subscriptions. I urge you to go slow and again do your research!

And by all means - do not even consider trading options UNLESS you really have risk capital set aside that if 100% lost occurs, it will NOT harm your lifestyle!

Good luck - happy hunting!

WklyOptions

 

[No Risk Trader]

Why are you trying to trade yourself instead of working with someone experienced? What are your objectives..principal protection, cashflow, both...I'm not going to say be prepared to lose your money...that mindset would have to exist for trading stocks. When used effectively and if it is your objective equity options can remove the risk involved in investing in stocks. Again if you are looking for risk you can find it...nothing is riskier than buying a stock. For reasons that underlay how investors of all financial strength, are to even basic option strategies,options are not routinely added to stock investments and they should be. A simple example that no manager can answer in way that makes sense...if a stock is recommended(for whatever reason, standard jiberish) at $100.00 and that stock falls to $95.00..the buy and hold crowd tells you to do just that...take the loss..it will come back to 100.00 and go higher(to whatever number they project)...but this is wrong. Losses cannot be recovered...it is mathematically impossible...take any two factors, let's use what we have 95 and 100.....reduce each by the same factor and add to both the same factor...repeat as many times as you want with whatever factor you want and the side that took the initial loss(95) will always be lower by that factor of 5. The question then becomes what could have been done, maybe you could have stop losses to reduce our downside? If your firm isn't a rapist, maybe they will get you out if you have enough money...maybe. However options provide the means to effectively control your risk and potentially remove risk=losses. I would like to know what that guy told you. You're right, the SEC should do something about guys misinform, if that's what he did, contact them. If they don't know they can't do anything. Perhaps if you are inclined you could share a structure and we can go through how it should have worked. Or share what you wanted to accomplish and we can explore what could have been done. However, if your objective is risk....I can't help you. You can't complain if you lose your money if you are taking risk...although its done all the time and the government has shown they will protect you whether is Mexican bonds or AIG getting bailed out. Again using a basic example of how options can be used, the above 100.00 stock that dropped to 95.00 could have been purchased in such a way that you could have been paid in advance to buy the stock at the price you wanted and then once owned just kept it in hopes it increased. One thing to remember...if you are doing your own trades make sure you do so to qualify for MTM designation to remove limits on 'losses'. I doubt if anyone will tell you this....but an good option trader never,ever makes a 'profit'....cashflow and profit are tax terms and having 'book-losses' is the sign of someone who knows what they are doing. When you say you lost money on an options trade it should only mean one thing that an experienced trader wouldn't do....buy or sell an options contract and that you bought back or sold at a loss. Again, an example of how the loss was sustained would be beneficial. Options when used effectively allow you to participate in the markets without speculating in the markets....their are investors who think stocks are going up and those who think stocks are going down(this is what moves the market and why doing research is folly) as such money is made both ways. Therefore their are no bad days in the markets..it just depends on what side of the trade you are on. Fund managers, retail investors should all have some sort of options strategy if only to protect downside losses. In the above, the drop from 100 to 95 could have been 'insured' using options at a fraction of the loss. So it just depends what you want to accomplish and with whom. Another issue per you taking losses....how were your options orders executed...did he try to sell via the options window? Options have their own execution orders and have priority. Buy-to-open orders and buy to close orders are given preference. Good luck.

 

[gerryg]

Can someone please give me some guidance on this type of trading and it's positives and negatives. I found a guy on the web named Jeffrey Ziegler who is a self proclaimed expert, however it would cost me $995 to find out how much of an expert he may be. I am always suspicious of the so called gurus who are spending more time marketing their education than practicing their trade.

DezertDawg

Look through dozens of books, articles and fashionable financial magazines and finally you will have nothing you can make money with. Binary options as well as forex are make a sense only for those who makes his own understanding of a market, found it's personal signals it gives to a learner..