Anyone read thestreet.com's option alert? While I was searching on Google, I stumbled on something like this: http://64.233.179.104/search?q=cache:Nlb7xRN2X-cJ:www.thestreet.com/k/oa/archives/200601300900.html I looked at their 4 suggested trades on HAR, ERTS, AMZN and HRB, and I am totally astonished! :eek: You will know why if you follow those 4 trades and check what they worth today.
I know the author of the article/alerts Steve Smith and he used to trade on the floor of the CBOE or CBOT. I have not looked into the alert service they do but his free articles are worth following and I highly recommend it. As for the performance of the picks, one day viewing is not enough to get an overall sense of performance and I do not know how it has done in the long-term. Feel free to e-mail Steve directly and ask him about the service if you want. Tell him Phil says hi lol.
Did you actually track the results of his 4 suggested trades on 1/30/2006? The 4 suggested trades on 1/30/2006: 1. 20 Feb HAR 110/120 1x2 call spread with net debit of $3.00 per 1x2 spread 2. 20 ERTS diagonal calendar spread with Mar 55/Feb 60 with net debit of $3.15 per spread 3. 20 AMZN Feb Iron condor at 37.5/42.5/47.5/52.5 with a net credit of $2.10 per condor 4. 30 HRB march 25 calls at $0.85 per contract Results as of 2/9/2006: 1. Completely bombed, worth about $0.05 per contract. Net loss = $6,000. 2. Halfly bombed, worth about $1.50 per spread now. Net loss = $3,300 3. Completely bombed, 42.5 put worth about $3.80, so -$1.70 per condor. Net loss = $3,400. 4. Under water. Each contract worth $0.65 now. Net loss = $600. If I follow all of the 4 trades, I would be under water by now at about $13,000. Yeah right.
I don't subscribe to ANY option or stock advisory but I second what coach is saying. Last year it was Steve Smith who mentioned TOS and started me on my journey of REALLY learning options. Any advise paid or free is JUST that...and my guess is that Steve is long term profitable.
DonnaV, I also enjoy his free articles at thestreet.com. However, if he is really a successful options trader, you think he needs to sell option picks?
As I said I do not know anything about the advisory letter and one cannot take only one day as evidence . I was just vouching for him personally and the fact the he writes free articles daily on option trading. Since he worked on the floor for 15 years he has some good experience and may uncover some interesting trading opportunities. I do not expect him to be 100% right. What if he was up $100,000 before that day's letter? It would certainly be a different slant if you posted a day where all 4 of his trades were huge winners. So you have to see the track record on a whole. I honestly do not know his track record and am not making a recommendation either way. You can e-mail him if you want.
Well he does not sell them, the company he works for sells them- the Street.com. Jim Cramer was a pretty successful trader and he sells stock picks. Steve traded on the floor for 15 years, if he was bad I doubt he would have lasted that long. As I said I met him personally and he is nice guy with a lot of knowledge about options which he shares for free in his daily articles. I can understand why after being on the floor for 15 years he wants more steady stress-free income as a writer which he has done for the past 5 years or so. He still trades a lot for his own account as well. He is very approachable and friendly and will answer any questions posed to him honestly and directly, that is why I tell everyone to e-mail him if you have comments or questions.
Perhaps that is the reason he is writing for TheStreet.com. One has to use their grey matter and street smarts in this business. Good day.
I have to disagree with OptionCoach yet again. In many cases, the reason many of these people survive is because they ARE on the floor. A real edge is quite a bit different from the perceived edges that are thrown about on this website.
What is his email? I emailed to the email address provided for option alert related questions, and I have not received any reply yet.