Wednesday, October 31, 2007

Options basics

One of the basics of any sucessful investing strategy is the use of options. Options allow you to capure the profit potential of a stock at a fraction of the cost. Some say that options are too risky. I believe that if done right they are no more risky than buying a stock. Just look at a stock like Apple (AAPL). It is very volatile. Using options correctly in a stock like AAPL can be very lucrative.

Options are very versatile. They allow you to adapt to up, down or flat market conditions with ease. Options can be as conservative or risky as you want. Since options can be risky if you want them to be they come with the following standard disclaimer:

"Options involve risk and are not suitable for everyone. Invest only with risk capital."

In upcoming posts I will go into the basics of Options using examples. Topics covered will include:

  1. Calls and Puts

  2. Straddles

  3. Strangles

  4. Spreads

  5. In the money vs. Out of the money

  6. Options premium

  7. Volatility

  8. Greeks (gamma, beta etc.)

Have a great day!

Saturday, October 27, 2007

Investools review

Investools is intended for the novice to experienced investor. Investools recuits people with a free 2 day seminar to get people motivated. The trick is that this seminar could end up costing you two grand. Unfortunately, the 2 grand is just a start. The continued Investool scam bundles come in three packages.

  1. Associated course - $5,000
  2. Masters Course - $11,000
  3. PHD Course - $23,000

From my conversations with trader, while Investools is overly diligent in selling you additional materials, they so offer some good advise along the way. Thruth be told, all the info they teach you can be found for free on the internet. It is my hope to teach you some of these things in this blog.

On way around the Investools scam is to make sure that you keep all the materials that they give you on the first day. You can turn the materials in at the end of the first day. Make sure you tell them you will not be returning for the second day. This way you will not be charged for the course. Investools will try for the hard sell on there other programs and other seminars.

Friday, October 26, 2007

My First Post

The purpose of this blog is to give an impartial review of the Investools program. Is it worth the cost? Does it help the novice investor? Does it help the experienced investor. These are the questions I hope to answer. I hope you like it and find it useful.