Big Money Options Latest Review Page 2 updated July 1, 2012

 

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I have always stated that you need to set your own guidelines on when to exit the position. Since there wasn't the kind of pin action as before and the Big Money Options picks weren't producing as before I "missed out" on the above opportunities except for one.  I was able to eke out a small gain in one option alert and that position in the Big Money Options portfolio is now down 89%!

I missed out on a bunch of the alerts because I stopped participating in them.  The reason is the prior picks were not panning out which made me lose confidence in the Big Money Options team.  I also had several open positions from their prior picks at certain times and I wanted to exert discipline by not having too many open positions at one time.  Admittedly there were some winning option picks that I missed out on by going this route.

As you can see from the table on the previous page, every pick, except for one, had a negative return. The one positive position had a 65% gain, but it does nothing to counteract the other seven positions if you did an equal weight on each alert. Even if you throw in the three positive returns from those alerts to close open positions, you would be down quite a bit. At the beginning of the week of the 25th of June, 2012, there were 11 open positions in their Big Money Options portfolio with 10 losing positions.  

Personally 11 open option positions is excessive.  Perhaps it would be different if 90% of the picks were up 200% or more.  If that were the case though, I would have exited most of those picks. Is it normal to have that many open positions in a newsletter portfolio?  That is difficult to say, but Schaeffer's Players option newsletter had one open position in their porfolio prior to the market opening on July 2, 2012.  

From November 2011 - June 29, 2012 I noticed a dreadful streak in the Big Money Options alert picks. A good majority of the time, the option price went to a negative result from Day One of the alert.  They admitted as much on one of their live broadcasts.  It used to be that the highlighted option pick saw a tick up in price immediately after the alert and had follow through.

As mentioned before, there was a drop off in volume during this time period. The reasonable conclusion is that there was a net loss in subscribers.  Another conclusion is other subscribers felt overextended with the number of open positions that they wanted to close one before opening another.  I was part of the latter group.

During the second quarter of 2012, I noticed that there was some volume in the option the day following the alert.  It almost seemed that it was a concerted effort by some subscribers to wait a day before jumping in on the pick since there was a long string of picks where you could pick up the option cheaper. The issue was that the option price kept heading south.  

I called to remove the auto renew feature from my account and I have a yearly subscription.  I am basically documenting their results without participating in the picks.  I hope that Big Money Options can get on a hot streak, simply due to the fact that I have been with the service for such a long time and it is painful to see it fail after being such a constant performer for me. Unless Big Money Options changes their methodology for coming up with option picks, I don't see that I would subscribe to this service again.