Options newsletters rip-off report: They’re criminals!

I recently favorited and re-tweeted a tweet from Kim Klaiman;

Autotrading investment newsletters: are you aware of the risks? Did you know that in most cases it is not legal? http://bit.ly/1BDVXLL

Let’s go back and re-visit some of my rants in my previous posts;

“Gotcha” Trading from May 20th, 2012

Trading Plan (What? Wait, there’s a plan?) from June 2nd, 2012

Option Spread Trading ‘Services’ reviews from September 14th, 2012

Auto Trading Options Spreads; a cash shredding service $SPY $QQQ $IWM from September 25th, 2012

more on spread trading and auto-trading $STUDY from December 12th, 2012

Those are just some of my rants on the subject (you can find more if you just search my blog), which is why I was drawn in by the subject of my re-tweet. Clicking the provided link, I found it was selling an options auto-trading service, and I was about to close out the browser tab when I noticed this;

Is the newsletter a licensed investment adviser? SEC considers newsletters that engage in auto-trading to be investment advisers. If the newsletter is not an investment adviser, by engaging in auto-trading they are breaking the law and are exposed to lawsuits like this one.

This is the lawsuit mentioned;

seccomplaint

So, I went and took a look at some of the websites that I had previously auto-traded, and look what I found;

From http://www.wickedprofits.com/disclaimer.html (emphasis mine);

wickedprofits

From http://optionempire.com/about-us
(emphasis mine);

optionempire

From http://momentumtrades.investorplace.com/meetrickrouse/ (emphasis mine, and doesn’t specifically state whether or not he’s licensed, but it does state he failed the series 7 exam and opted not to re-take the exam);

rickrouse

From http://www.bookingalpha.com/terms-of-service (emphasis mine);

bookingalpha

Here’s some additional info from a good site (“Stock Gumshoe”);

BookingAlpha
Author/Editor: Trevor Vernon
(read the “Subscriber Reviews)

And then, there’s ‘this guy’ and his partner, Allan Tan. They contacted me and offered a discounted rate for their service in exchange for a good review on investimonials.com, which I have since come to regard as yet another moneymaker for Tim Sykes, douchebag extraordinaire and self-professed ‘stock shorting god’. But that’s a subject for yet another rant about charlatans, carpetbaggers, and snake oil salesmen.

John Mylant opens a Google search.

Disclaimer / Privacy Policies
(emphasis mine);

optionsweekly

This guy is such a scumbag and LIAR! His website has no mention of a 50% loss, but he does reference his old record and shows his new record, but selectively omits the one trade where his bad decision cost me more than 50% of my account.

Here’s his ‘trading record;

http://trade.optionsweekly.org/track-record/

You can click on ‘older track record’ and see that it stops on 5/29/13, and his ‘new’ track record records no trades for a few dates between June 12th – July 10th, 2013.

Here’s his version;

trackrecord

This was a screenshot of his website that I took on July 6th, 2013;

optionsweekly07062013

Here’s a screenshot of my trade logs showing he did make bad trades but fails to record them, leaving his ‘track record’ looking pristine. Lying scumbag. Anyway, here’s what his bad decision did to me in just one of my accounts;

mytrackrecord

So, if anybody asks me for a newsletter recommendation, they’ll get a blank stare at best. At worst, they will be hit with a tirade so strong it will blow them over, maybe even replete with profanity so strong and voluminous as to make even the most profane person in the world cringe at the barrage.

I should also mention all of these scumbags except one have a ‘no refunds’ policy. I did get a refund of $24 after one such scumbag lost me tens of thousands of dollars with his bad trades. Hah!

Most of these charlatans simply leave town with your cash. Some remain and keep lying about their great ‘service(s)’. Most should be castrated and lobotomized, at the very least. No beheadings, though, as this is not some crazed extremist’s blog. It’s my blog, and I seek the truth, and I seek to disseminate truth. No falsehoods, no sleight of hand, no smoke and mirrors. Just the plain ugly truth.

I also must mention that I have been ripped off by covestor and wealthfront, when they used unlicensed ‘advisors’ for investors to ‘mirror’ their trades. I’ve also been ripped off by Fidelity, but they had an excuse; “At least you lost less than the market. Here’s our bill.”

Finally, there’s this;

Do You Dare Sue Your Broker?

Food for thought.

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#HYHRD: Looking at daily and weekly charts for w/e 9/13 $STUDY

Looking at Charts is now updated on Sunday mornings.

Looking at the daily and weekly charts this week, these stocks look like they are in nice uptrends;


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#HYHRD: Weekly position and portfolio #review $STUDY 9/13 Update

It’s time for the weekly review of positions in the HYHRD (High Yield High Return Dividend) portfolio.

“Smithers, release the hounds!”

  • This week:
  • brokerage-A shows Total Net Profit of $1,201.63, down from $1,636.38
  • Roth IRA-A shows Total Net Profit of $5,134.65, unchanged from $5,134.65
  • IRA-A shows Total Net Profit of $13,532.63, unchanged from $13,532.63
  • brokerage-P shows Total Net Profit of $2,704.76, down from $3,095.98
  • Roth IRA-P shows Total Net Profit of $1,599.17, unchanged from $1,599.17
  • IRA-P shows Total Net Profit of $12,208.38, unchanged from $12,208.38
  • Overall, the HYHRD (High Yield High Return Dividend) portfolio shows a Total Net Profit of $65,577.86, down from $66,403.83.
  • Expected Dividends shows $27,193.46 per year, down from $29,718.47

All figures are ‘since inception in 2012′ and dates vary from account to account.
Let’s see how it breaks down;


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#HYHRD: Expected dividends $PSEC $312.72 $MORL $17.09 $VGR, current holdings, actual yield as of 9/13 $STUDY

This is the regular posting of the review of “Expected dividends, current portfolio holdings, (and) actual yield” of the #HYHRD portfolio.

This MS Excel workbook now shows not only the Expected Dividends from the currently held positions across the HYHRD portfolio ($27,193.46/year), but now I have also added in the Equal Weight spreadsheet that shows the dollar amounts invested in each stock totaling ($240,945.86). This also enables me to calculate the ACTUAL YIELD for the portfolio holdings, and adds another spreadsheet called, amazingly enough, Actual Yield! From this sheet, I can further determine the most ‘bang for the buck’ by calculating the dividend expected per dollar invested! Um, please don’t put too much faith on that and base your investment on it, as I just wanted to calculate how much each stock would potentially earn (This portfolio should be expected to return about 11.286130% in dividends alone, according to the calculations that were just done). This does NOT consider capital gain/loss, like the new ‘scoring’ procedure does. I now use this new ‘scoring’ procedure along with all of the other indicators and sometimes my ‘gut feeling’ as to what and how to invest. Do your homework and do your own due diligence! YMMV!

Speaking of ‘gut feeling’, I sold all of our positions on 8/21, realizing capital gains of over $6,000.00 across all of our accounts. I’m calling that a ‘reset’ for the portfolio. I just didn’t feel comfortable with world events and thought I saw a little bit of instability in world and US markets. Perhaps I was wrong. I certainly hope so. Nevertheless, I have begun to re-establish some ‘old’ positions and establish some new ones. And, because $ORC was one of the positions sold on 8/21, and it was before the ex-dividend date on 8/22, I will not be receiving the $744 I had previously forecast for the dividend so instead I took $2,755.34 in capital gains on that position. A worthwhile move, IMHO. YMMV!

The large variations in dividend income each month is due to the ‘small month, small month, big month’ dividend cycle, when some quarterly paying dividend stocks do not pay a dividend until 1 or 2 months later. At that time, we will witness the ‘big month’ dividend cycle (usually January, April, July, October). The recent portfolio reset is also a factor.

Mr. Market may have different ideas than you or I, so it’s always a good idea to at least have a look each day. I don’t like buying when the market is going down, but I don’t mind buying so much when the market is going up.

Here is the Expected Dividends workbook;


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#HYHRD: spreadsheets for w/e 9/13 $STUDY q*.!.*p

I have combined several spreadsheets to make them easier for me to get the info I need. The combined spreadsheets are the HYHRD screening watchlist spreadsheet, the Score spreadsheet, Equal Weight (Investment amounts) spreadsheet, the Expected dividend (stock holdings) spreadsheet, the actual yield (‘dividend per invested dollar’) spreadsheet, the dates spreadsheet, and the watch list (screening) spreadsheet. They are all now found in the Expected Dividends workbook.

Here’s the Screening spreadsheet;


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