My other concern and this is premature at this point, but I suspect the new investor protection proposals will pretty much put all the independent educators out of business. Like the old independent MM or local. They were almost all put out of business by the cost of technology. I expect the education business that is not part of a brokerage house or exchange will be regulated out of business. This will consume the good and the bad
ISE educational presentations are now available via the iTunes Music Store. Visit Option Education @ Your Fingertips for free ISE podcasts. Sent from my Blackberry. Alex Jacobson ajacobson@ise.
From: OptionClub@yahoogro
To: OptionClub@yahoogro
Sent: Tue Jun 30 17:55:14 2009
Subject: [TheOptionClub.
Alex,
Thanks for the information. My impression is that brokers with legacy
computer systems have more difficulty and that the new guys like TOS and
OX have a significant edge because their systems are built from the
ground up to margin options positions. I imagine the trustee has to
take that infrastructure into consideration.
Also, I agree with and will your thoughts about paid educational
services. I would be cautious about going out-of-pocket any significant
sum for training that is to be delivered over a period of months or
systems that require proprietary data feeds. Times are tough and there
is a lot of competition in this market space. My personal opinion is
that the high priced hotel seminar model is likely no longer viable in
the long term, with that upper end of the market shift to more
personalized mentoring. It's just hard to justify spending $3,000 for a
two-day seminar when for $6,500 you can train with a guy like Dan
Sheridan. When you consider that some of the outfits have been charging
total cost of $20,000+ to work through their full curriculum, that
$6,500 begins looking cheap.
Christopher Smith
TheOptionClub.
--- In OptionClub@yahoogro
wrote:
>
> There are two issues with all option trading in retirement accounts.
First there is no legal restriction on any strategy or product in any
form of retirement accounts. Cash products, options and even futures are
legal as long as the strategy or exiting the strategy does not require
the account to borrow. So the strategy needs to be well capitalized. So
there has been lots of discussing of spread trading and cash secured put
trading as being allowed. This is true, but bear in mind if you lift a
leg the brokerage house either will stop you or automatically lift the
other leg. Cash secured puts are common, but again keep in mind when you
de leverage the put it is simply the same economics as the covered call
with fewer entry positions. Not necessarily less exit positions
> The second issue with retirement accounts is that there is also a
trustee for the account and this is where things can get sticky. In some
cases the brokerage has uses an arms length in house trustee or uses and
outside trustee. The trustee can also set standards which may or may not
align with the brokerage houses ambitions. This trustee relationship is
often where the strategy restrictions may reside. Some years back a
Chicago based trustee that allowed futures in IRAs actually failed due
to fraud - not the strategies just simple fraud. It is not uncommon
that the restriction comes from the trustee. Is on outside trustee
better or worse - who knows we could debate forever. Many argue that if
your IRA exceeds SIPC protection and outside trustee could be a good
idea
>
> On another topic and just a personal cautionary note. This is proving
to be a very difficult time for many of the paid educational services. I
would expect to see a ton of free deals and a major increase in
advertising and offers, probably even more consolidation. IMHO and this
is my personal opinion only I would be very cautious here of prepaying
and extended education program or buying anything that requires lot's of
ongoing support with a really good sense that the vendor has a viable
balance sheet. These are tough times in the paid educations business and
IMHO we will see fewer players on the other side of the current economic
environment.
> Good trading
>
>
> ISE educational presentations are now available via the iTunes Music
Store. Visit Option Education @ Your Fingertips for free ISE podcasts.
Sent from my Blackberry. Alex Jacobson ajacobson@..
1(917)2243711
>
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