Bernie Schaeffers Options Service Reviewed page 3

 

 

 

 

 

 

 

 

 

 

 

The company released strong earnings and strong guidance.  The next day,  I sold the options for $2.25. Not a bad return indeed.  I jumped on them because I noticed someone was buying 500 and 1,000 lots with less than 10 minutes before market close and used only the profits from my prior profit in the earlier 30 to 50 move to buy these options with 5 minutes before closing.

Another Schaeffer's option product that I used was the Leverage Series that was moderately aggressive in nature. It highlights in-the-money options. So the prices were higher than what I was used to.

I didn't participate in many of the recommendations from this service because the price of each option was too high. You may have read the advice in getting started that you want to commit a like amount of money on each trade. Sometimes the option prices were $35.00 or $50.00 per so to buy one contract was $3,500.00 or $5,000 in the above examples. So there were many times that the option price to get one contract fell outside of what I liked to commit to each trade and as you know they don't let you buy half contracts! Also with the huge discrepency in option prices it was too difficult to commit a like amount on each trade.

Normally though the prices are more in the $12.00 - $20.00 range with picks from Event Series. There was modest success with this service, but to be fair I engaged in a small portion of their picks. I employed the same tight leash as the others with the Schaeffer's family -- exit on 50% gains or 30% losses.  The 30% loss was hit quite a few times when the underlying stock went down in sympathy with the market on a general down day and the options did recover on the times I checked, but it was too late for me since my discipline got me out. continued

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