Discussion in 'Options' started by jsv416, Apr 11, 2007.
Has anybody used the the heatseeker service that Optionmonster.com and Jon Najarian are pumping??
Yep, did it for a few months. Their track record was pretty lackluster. And I also sent them an email saying that they left out a trade or two, but I never saw them include it. However, that being said, I stopped trying to trade on their recommendations for the reasons they gave.
Instead, I basically just started gaming their advisory...so I'd make the trade as fast as I could when the email came through with their pick, and set a limit order to sell at a 10% profit. It worked a lot...you'd see the email come through, and then sure enough 10-30 minutes later you'll see the volume turn green and the IV spike.
This only worked if I acted quickly. I had to stop because I have a day job and would miss some trades because I didn't happen to be sitting at my desk at the time. I also didn't have the balls to put a lot of money on each trade to really make it worth it...I wasn't confident enough...(ie, just because it worked 8 out of 10 times doesn't mean that will always be the case). I also thought that I didn't have enough control over how quickly I got the email advisory...ie, if my work's email server happened to be sluggish, that could make a difference.
In summary, it's worth trying to game to see what you can suck out of it. But their whole theory that a stock MUST be on the move in one direction or another because of some volume spikes in the options is wrong enough of the time to leave you with a sizable negative return. Yes, every so often, you might catch a take-over, but there are a lot of "-100%" in their track record as well.
I'd pass on the service as well. You'll only hear them talk about the good times, never the bad. Plus if you follow all calls you'll be spread thin. Eventually, at least one of the calls will make money, thought. Unfortunately that one good call doesn't make up for the 5-10 bad ones before it.
Sounds like a good fade?? Subscribe, and do the opposite, and make $$$
sound like my experience with option calls from Bernie Schaeffer service.
I've actually given it thought before, but never tried it.
On another note, if you are interested in the "system" Najarian uses, here is something similar to it :
They spot unusual activity, and are able to tell if they were buying on the ask or selling on the bid. Haven't tried it, but the guy that runs the site does daily commentary on theoptionsinsider.com .
Hope that helps.
thanks all.. I appreciate your opinion and will take it into consideration.
I would stay clear of Dr. J's services if I were you. He is well known "in the biz" for not being the most reputable of fellows, so I don't think I would gamble $500 a month on his picks. But, then again, I've never been a fan of options gurus.
Moral of the story.....SAVE YOUR MONEY and do your own homework.
Agreed. If you are dead set on tossing money at his calls, just follow the CBOE-tv segment. Alot of what is on insideoptions (the pay site) is also up on cboetv and optionomonster.com for free.
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