The math just doesn't work - but neither do the trades
I signed up for Power Options when TP was having a sale for 3 months. Things were grand. I quickly made up the cost of the service and then some. The thing I liked most was that Lou seem to have real skill in his ability to get out of bad trades. Lou usually trades vertical credit spreads on the SPY. When the trade goes against him, often he would place a hedge (buying a put). If the hedge was needed, it would cover much or more of the loss. If it was not needed, it was turned into another vertical. Pretty cool, right. Every week wasn't a winner, but the losses were contained.
I wanted something a little more conservative, so I signed up for Spread Trader. Lou says his #1 objective was 'capital preservation'. Me too! Turns out that Spread Trader and Power Options shared a lot of the same trades (this should have been my first warning). As others pointed out, things were going great until Jun. Then a very narrow Iron Condor trade was placed on the VXX. If he was right, well, he would be paraded around since the credits were for 0.50. But it didn't work out. Neither did the hedge that followed. Two trades wiped out all the profit I made since starting the service.
Note that Lou tried to hedge and make up the loss, but in doing so, he placed 60% of a portfolio (3 positions) at risk on a single trade. I can't remember the exact trade, but it banked on the SPY not dropping to something like 130 in 3 weeks which would have been a drop of 60 points or so. I was not willing to make that bet. It was way too f**king risky.
Then I hit pause, watched some trades work out, and decided to hop back in to recover some of these losses. Lou placed a vertical on the SPY that expired today that was nearly a 80% loss. Fortunately I got out much earlier with only a 50% loss. And I am finished with this service.
All this time, Lou does not communicate. You don't know what he is doing or why. Lou also does not try to cut his losses when its obvious he's in a bad trade. "Hope" is not a system I like.
But here's the real kicker. As one reviewer just pointed out, you can get 10% weekly profits when things are going well. But if you follow Lou's advice, you have 5 open positions, and he normally only plays one position (unless something has gone wrong).
10 % per week
divided by 5 open positions
2% per week
So you are really looking at a service that aims for 8-10% per month. And folks - there are other services that give you that same goal but with much much much less risk and a heck of a lot more trust.
Finally, I suspect many of the positive reviews below are artificial. I'm on the borderline of calling this service and outright scam. But it is possible that Lou is going through a bad patch. I don't know. But I know it is far far far more risky than advertised.
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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