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June 21st, 2005


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11:54 pm - Stock thingies
I went to this free seminar today on options sponsored by Optionetics. Of course they were selling a product, and it actually looked very nice. But I don't have $4,495 to spend to take the actual 2 day class that teaches me how to buy options. Still they gave enough info to make me think that options might be something to get into. The key thing was that it doesn't matter if the market goes up or down, you can still make money even if you make 7 bad choices out of ten of course you still have to manage your losses and cut them of early. Example. Say I look at a stock and think it will go down. I buy an option put. This give me the option to sell the stock later at the current price. So if it goes down, great. If I think the price will go up, I can buy an option call. This gives me the option to buy the stock later at the current price. So if it goes up, I'm golden. What you can do is buy both a put and a call on the same stock, so no matter which way it moves you will make money. And the way the risk curve works if it does not go the way you want it to, your loss is a lot less than any gains you would be making. This makes buying both the call and the put work. Technically if you have both and the stock moves in one direction you will actually be losing and gaining at the same time, but the gaining will always be bigger than the losing. This takes a lot of stress out of the stock market. They talked about how working with options is cheaper and there is less risk. The only bad thing is if a stock just sits there and neither goes up or down.

The Optionetrics place had a nice infomercial. It showed teenagers working this system and making money. The presenter today mentioned that two of his three kids are doing well with the system. Of course if I had signed up today, they would have knocked off $1000 from the $4,495 pricetag. And of course this deal was only available during this particular seminar.

It does sound like a good system, however. There is lots of support available and they will even hold your hand and walk you through making trades. Plus, you can keep taking the 2-day classes for free as long as you want after purchasing the first one. You can have a child under 18 take the class for free, and then they will be able to continue re-taking it for free as well. Re-taking the classes often is good as they tend to cover different things depending on the market at the time. That way you don't get overwhelmed at all the different strategies. You also get all sorts of study materials including DVD's. Also they have several guarantees. The first is that if by noon of the first day of the class you think you don't like it, you can get a full refund. Also if after 6 months if you don't make 3 times the cost of tuition, they will refund your tuition. Still it's something I won't be getting for some time to come.
Current Mood: goodgood
Current Music: CNBC

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