Buyer Beware >> Optionetics
Customer Review for Optionetics
| Review Date
|
2007-02-11 |
| Reviewer
|
Ben Small from College Station, TX |
| Rating
|
2 Stars or Acceptable |
| Review Title
|
Decent Product - Cheesey Guarantee |
| Review
|
Only problem with Optionetics is the Cheesy guarantee. It's ridiculous how they fight people who try to get a refund after trading 36 trades and lose. I myself, had no computer or brokerage account when I signed up so I knew going in that I would't make the 6 months time limit. The best thing you can do is GET YOUR REFUND AT LUNCHTIME OF THE FIRST DAY. When I went they were really good about refunding people at that time.
In the audio course materials, GF states that it is not necessary to buy any other thing. Which is true BUT the seminars are a vehicle to sell you the software, which you don't need.
Finally, options can be more or less risky than stocks.
Here's a REAL TIME EXAMPLE for today (2-11-2007). Say you want to buy 100 shares of Cisco Systems (CSCO). At $28/sh it will cost you $2800. If you buy the July 2007 $25/$32.50/$40 butterfly call option spread on CSCO It will cost you $300. If CSCO is still at $28 on July 20 (options expiration), Both the stock purchase and the option spread break even. If CSCO is at $31 on July 20, The stock made a 14% Gain but the options made 133% gain. If CSCO is at $25 on July 20, you lost 11% and the option spread lost 100%.
The option spread can lose 100% but can control $2800 worth of stock for only $300 with the same break even. Which is more risky? You decide.
"CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS" is a booklet every broker is required to give you before you trade options. Stop into any brokerage account, someone should have one handy. Start there.
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