Glen, As you will find, the biggest problems with making money with options is proper selection of stocks and money management. My guess is you will find many different strategies and opinions on the web site, but from what I have seen, most are relatively conservative ( even the naked put writers) in their choice of stocks. Some are very conservative. Another web site that I am also a member of has more conservative views and a unique method to make money with leaps : <ConservativeOptionS You will also hear comments about the "blue collar investor" who has given me and others here a bit of sound advice. All would agree, in my opinion, stock selection takes time and effort. IBD, brokerage stock lists, fundamental review, etc. Although many of us don't want to fall in love with our stocks, we don't want them to take a nose dive during the month unexpectedly. And generally, you will see many of us rewiting calls against the same companies month after month. Of course, then there are days like yesterday and today -- who can predict China? Money management is more than a monthly look at your account. Especially in diagonal or calendar spreads. None of us (I hope) believe that the guys that sell picks are truly accurate -- if they were, why would they be doing it? Altruism? They like to help people? Many of the pickers are chartists: they believe you can tell all from the chart -- parabolic options, etc. Shaeffer Investment Research makes a lot of money from options research and they can't pick for beans. Are they as well researched as they should be? Penny stocks, well, there is always pump and dump, so there is a good reason for extoling the virtues of these companies. (and for us avoiding them) If you want to make about 1% per month, you can probably do about that or better with an account at TD ameritrade and doing buy writes using their best S&P covered call list. You can buy Larry McMillan's complete Options course in 4 DVDs from Trader's Library on line. I know, cuz I bought it there. You don't need a coach until you have a game plan! John --- On Thu, 1/21/10, Glen Fullmer <gfullmer@cox.
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