This service works on the principle of selling cash-covered puts on common stock. Unlike some put selling services, the put will not be bought back if the underlying's price comes under pressure. Instead the put will be allowed to expire in the money, and later covered calls will be sold over the resulting stock position, until the stock is eventually called away.
The service is exceptionally profitable if you are patient and give it time to work: the trade results shown on the website are correct and the fills realistic. We have traded the service for 1 year at Global auto-trading, where the 'at market' fills have matched the system results.
They key however is patience. Sometimes for example a share position will be put to you and the share price really collapses, leading to a large paper loss. Indeed anyone who trades the system for a while will end up with a handful of put stocks showing a paper loss, against which calls are being sold to generate income while the stock price is taking its time to recover. It is at this point that patience is required as it can be quite intimidating to see the value of a position halved or worse.
Probably one of the best assets of the system is the Oracle himself (Brad) who has a steadying hand and keeps you from closing positions prematurely out of fear. Generally the stock price will recover, and the position then prove to be very profitable indeed. This is because you will have generated income from the original put sale, plus all the subsequent call sales. And Brad normally sets the final call price at $1 more than the price at which the stock was put, ensuring a profit on stock value as well. So basically the system is impressively profitable, as is reflected in the results.
So what are the cautions? If you are looking for quick monthly results - you may get them sometimes (e.g. when a put expires nicely out of the money and you collect about 10% return immediately). But you may not enjoy holding 'red' put stock positions for a year and more, waiting for the share price to recover. And of course some positions (just a few) may never recover at all.
Also, if you need very tight account controls this system may be difficult to manage, as you never know exactly how many stocks may be put to you at any one time. That is, the system portfolio size is very hard to specify.
Finally you may have an issue with some of Brad's picks, as although he may sometimes select issues with a high short interest (which provides healthy put premiums) there is often a reason for all the short interest and you may therefore find the picks a little speculative. Having said that, recent picks have been rather good and I think any clients signing up in the last few months will have been very pleased.
Brad is an honest player and has a real system that works, if you are patient enough to roll with the punches. (
[email protected])
This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
2 of 3 people have found this review helpful.
Was this review helpful?
Yes
No