Investorplace.com: Big Money Options

Big Money Options from Investorplace.com

Scam Scam Scam!!

Much like other services I have tried that have been backed by Investorplace.com, I took yet another free trial, that promised amazing gains, and lost all my money using their recommedations.

I made sure to follow as many of their recommedations as I possibly could, got in at the right times as they advised, and watched my money dwindle away. They would send a weekly email, telling us to hang in there, that the trade would improve by 300% or 400%, but it continued to go down, down, down. I'm not an options trading expert, this was the first time I had traded options. I made no decisions on my own, I followed their advice alone. Trade after trade became worthless, I did make money on one trade though, yes, $10.00 That's how much I made after investing $2000.00 in multiple trades on their advice. It didn't even cover the cost of commission, so really, I lost on that one too. My whole tax return money from this year went down the drain because I trusted them. They never had the balls to say, we picked a bad one guys, get out now while your trade still has some value, not they just kept telling us to hold on, and in the end I lost everything during my 3 month trial. The only good thing was that they gave me my money back on the trial, but I lost over 6 times the trial fee in the meantime. They should be sued for their lies, save your money, getting back the 3 month fee doesn't help much when you've lost your investment capitol in the interim.

Smrtipants

Accuracy

Complete scam

I keep getting ads from those guys, so I decided to give it a try, considering the fact that they have a risk free subscription.

They advertise profits of “…1,100% gains in 15 days, …1,200% gains in 7 days, …2,300% gains in 10 days.” They promise to double your money twice a month.

Let’s analyze some of those profits, beginning with the largest one. 2,300% came from VZ April 29 Call-April 28 Put Debit spread. They call it Debit spread; in fact it’s called a risk reversal. You buy a long call and “finance” it by selling a short put. In this case, the position was purchased for $0.03 per spread and sold for $0.72 per spread for a profit of $0.69 per spread.

Now, based on 2,300% profit calculation, you would think that if you invested $10,000 in this position you would grow your money to $240,000, right? Wrong!!! This calculation completely ignores the margin requirement for the short put of about 20% of the underlying stock value – in our case, about $600. With $10,000, you could buy about 16 spreads, and your profit would be $1,104 (16 spreads * $69 per spread). That’s 11% return on $10,000 investment.

Those types of spreads are about third of their positions, so you can imagine what impact all those fake percentages have on their statistics.

So all those 1,200% and 2,300% gains are in fact only 10-20% return on margin on average, and in terms of growing your account, this is the only thing that matters. About 20-30% of the trades lose 80% or more, very few big real winners.

They also claim that “our string of 12 winning trades handed us average profits of 423%. $1,000 in each of those trades grew into $62,760”

Simple math shows that they calculate the profits based on the average gain multiplied by 12 trades ($1,000*5.23*12). That assumes that only one trade was active at any given time, which is not the case (currently they have 20 open positions). Saying that “$1,000 would grow into $62,760” is extremely misleading and completely dishonest.

Bottom line: this service is a complete scam.

Kimk

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