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After buying his course in 1999, I attempted to trade contracts and kept getting stop lossed out. So I figured why not try options, less risk and greater leverage after all.
One of the toughest things to do is to pull the trigger on something new and make the trade, so just before the gold market closed on Friday, I placed an order for 2 Dec 270 gold calls and 1 Dec 275 call. Total expenditure was less than $400, which included $60 per option round turn commission to my broker. Gold was trading between $250 to $260 at that time.
Monday morning gold went to $330 and I sold my options sold for over $3000 each! The first of many very profitable trades. The funny thing was that when gold hit $330, 300 puts were selling for only $100 each and I passed on them because, being a newbie, I thought gold would continue to rise. Of course, the market corrected and went down, but I learned a lesson which has made me a lot of money since then!
Bottom line is that I have never traded contracts since then, only out of the money put and call options 3 to 6 months out in markets near or at multi-year highs or lows.
Ken Roberts option strategies do work! It's a shame that they are not emphasised more!
And always remember, the market has room for bulls and bears, but it slaughters pigs!!!!!
Here's to margin call-free trading with options!
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