Linda, I subscribed option advisor through "security information exchange" program, you know that you pay $69 get 4 different newsletters for five months deal during late 1995 and I got back in Feb by responding his tender, but cancelled later on and got money back.
My experience of his newsletter was that you might find one or two good trades in each issue. If I can pick up his recommendation which I have the stong agreement, I may get 50% of winning trade. I found I more like his partner Price Headley's recommendation than Bernie. Bernie makes me uncomfortable because of his contrary technique. For example, he is always bear on Dell and Compaq and recommended of put options couple of times which were wrong. He even recommend Intel 50 put Microsoft 80 put, EMC 15 put when Intel at the bottom at 54 Microsoft at 85 EMC at 16 in feb 1996. Also, he recommend the Apple call in late 1995. Look, he just uses the contrary and out of touch of the fundmental. I will just past those rec. He is doing relatively well in consumer cyclical and financial issue than high tech. For example, he recommend Great Western call just before the company was taken over. Everyone bought that option could get 8 times of return. He was also right on TMX and Telebras especially Telebras which made tons of money. This is a mix picture. I feel it is important to follow his hot line as a referrence. Personally, unless I have more than $80,000 to committed to trade. I don't like newsletter or fax service. The reason is a. You pay for lot of fee and get 30-60% of successful. I guess I can do it myself. b. It is not practical because of violent movement of option price. For example, When I get their recommendation of AMD, the stock was up 2 points from the nesletter's price and option price was far beyond the Max entrance point. What should I do? They count it as a 100% return and I even have no chance to get in! 3. I guess there is no magic bullet around in option tradings. I believe they have the resource to access the expensive software and technique available and still show lousy totall return. It just prove few people can beat the market than market itself.
The interesting thing is those Option softwares which for sale from $500 to $2,000. I believe these are no big help to small investor. Guess what, new traders always like to buy into expensive service. They think the higher the price the better outcome. Those $2,000 seminars and fax services are sometimes not more than a scan artists. Beware! They make a killing by selling those thing to the suckers. The common sense of you get more when you pay more was not true in investment service society. Bernie is not too bad because his letter is only about $150 for two years compare to other $400+ newsletters.
Finally, have you head of Don Fishback? I studied his odds system which claim winning 95% of time by sell cover options. Of course, he is 100% bull, but anyone has any experience? I like to find out
Hui |
