If you are looking for financial advices you might let professional options CTA manage your money. At least the published ones with the NFA have an audited track record and some of them are doing well. Common sense would dictate that if one is good at making money one would just do that instead of selling advice for $20 - $40 each month
I am sorry but that idea just does not make any sense. If your trading system is profitable why not sell its trading signals on the side too? And if you only have 50 subscribers each paying you $100 a month for the signals that's 60K a year extra profit doing nothing more than what you are already doing anyway: trading. 100 subscribers? That's 120K a year doing almost nothing. Now we are talking 6 figures here. Think about it for a second...
What are the legalities of setting up an option advisory? Can anyone just setup a website and send subscribers option trade recommendations? Is there no regulations in place?
No sure about the legal stuff but the successful trader can simply use third-party websites like Collective2 to sell his trading signals (stocks, futures, Forex, options, etc...) and collect subscription fees without any legal problem whatsoever. That's the fastest and easiest way to begin selling trading signals immediately, legally.
This is exactly what I was talking about. And if SPX goes down another 10 points tomorrow, they will be looking at ~$9,000 loss. That would erase 5 months of gains. Of course if SPX rebounds tomorrow, the spreads will expire worthless and they will look like geniuses. The question is: are you willing to take that risk? And one more thing: if you compound (and this is the whole point of investing, isn't it?), then after 10 weeks of 5% gain and one week of 50% loss you are NOT back to even. You in fact have lost money.
So.. did they send an exit alert? The trade is currently down 65%, and has a REAL chance to lose 100% if SPX goes down just another point.
Yes they did. ====================== The final results are in from the first trade I received from myweeklyoption advisory service. I signed up for the free 2-week trial and they emailed me a 2% OTM SPX 1925P/1930P 2010C/2015C iron condor, details of the trade are in post #19. S&P500 5-day chart Blue Dot - Received email alert to enter SPX iron condor for $500 credit. Red Dot - Received email alert to exit SPX iron condor for $3,000 debit. P/L -$2,500 If the trade was held to expiry the P/L would be very close the the maximum loss of -$9,500. As you can see there is nothing low risk about myweeklyoption's strategy or iron condors in general. I doubt anyone who entered that trade was sleeping well last night.
This is UNBELIEVABLE. So basically they had 1925/1930 put spread, and they let SPX to go 5 points below the LONG leg, with less than 5 hours to expiration, hoping that it will recover. Eventually it did recover, and the loss was "only" ~30%, but there was a real risk of 100% loss. To me, this is not investing. This is gambling. Unfortunately, there is nothing illegal about doing this (as long as they don't manage money or do auto-trading).