I'd rather short options, even with all the times i got blasted on contracts that went bad, i'm still ahead.
Not a bad tip. I've been to the options insider before, but I hadn't seen their options activity reports. I like the "seller bias" and "buyer bias" stuff. The trade alert service seems cool, but I don't know why I would pay for it. Especially when he puts his analysis up for free on www.TheOptionsInsider.com. (Maybe his www.Trade-Alert.com commentaries are more lengthy?) The options insider site also has a similar daily report from Susquehanna about unusual options activity. Personally, I'm more excited about that one. A buddy of mine still pays for that Susquehanna research report. I used to have him send me a copy every day (what a good friend I am!). Wait until I tell him that he can now get it for free online. He's going to be pissed....
I am an options writer and looked at Najarian’s $3K per year way of supplementing investment income. Jon talks about how his group tracks unusual option activity through his proprietary Heat Seeking computer and differentiates between big money and retail option contract purchasers. I thought this a reasonable way to use big money research and Jon touted this feature in his sales pitch. So, in real practice, I began following his alerts (they always seem to reach me thirty minutes before market close) and as a way to test this new strategy, I involved just one contract per recommendation. I did this six consecutive times and tuned into the Wednesday morning updates. Bottom line is, I lost more than I gained. I acted as immediately on each trade as humanly possible. I have stopped following this money losing way of trading options and continue as an option writer, something far more profitable and reliable year over year, than following the expensive and not so profitable Najarian system. John
He still on CNBC unusual options activities talk ? How does his options recommendations (alerts) on CNBC perform and what's the difference in comparison to what you were getting ? Also, can you be specific about which consecutive options trades your talking about (dates, recommended entry/exit price) ? wrbtrader
Najarian is a train wreck. I was upstairs when he nearly blew-up short vol in a biotech. I wouldn't give the guy lunch money.
It cannot account for volume from arbitrage. I could go on, but op-volume is worthless outside of capacity.
wrbtrader, here is a spreadsheet of my last trades using Najarian alerts. I may have one more that I did not track and it was a loss of a bit over $100. Like I said, these were test trades to see if it was a money maker or loser. It appears it is a money loser, at least for me.