Was perusing the internet last night and found this article on (Chicken) Bull Put Spreads by Darlene Nelson of Bettertrades.com http://www.bettertrades.com/BTC/Tutorials/20030814_Darlene.asp I would like to get members who trade credit spreads opinion on this strategy, also I have never heard of Darlene Nelson or www.bettertrades.com in the past, what's the skinny on them?? thnks. z.
Looks to me like she opened up over $9k of exposure (20 contracts x $5 spread -$.40 credit) for a potential return of $800 on a stock known for big moves....all it takes is one gap down and kaboom... I don't see this trade as being for the faint of heart.
She is a former Wade Cook instructor and author of a book on methods for trading stock splits. She (as you know) has her own website and gives seminars around the country. She has some good leap/covered call strategies. The "Chicken Bull Put" strategy looks feasible but as another member pointed out, it is a high risk for low return play and doesn't fit in with my personal trading style.
She makes it sound so easy...it's a wonder that she doesn't just retire on the boatloads of money she must have made. Gee, she must be teaching her courses out of the goodness of her heart because if she was in it for the money she would just do more of these slam-dunk trades.
On a recent free web cast she told the group that she was doing it for altruistic reasons. I quote " I do it because I want to see everyone succeed, I don't need the money because I make my living from trading. I have a 6000 sq foot home and my husband and I have retired more traders then anyone else". Why because you helped them blow out there accounts !!! Claims to have turned a 5k account into 64k in 14 weeks. Do these people ever get arrested ???
Anyone get ripped by them? I had been told that one would be able to paper trade during 2 day classes and be able to paper trade right after class. LIE LIE LIE!!! The two day class revolved around using and purchasing their $6000+ software and accessories, plus the need to keep taking more 2-day $99 classes around the states......Noone in the class who went to previous classes showed real profits........The 2 DAY class was why I paid....everyone else I met from the class feels ripped and/or confused, but I still want my money for being lied to.........not whether their product might EVENTUALLY be good............... Please let me know.....................