Dan Stevens writes:

Subject: Word of Warning

I also learned this technique from Joseph and Aaron and did very well the first 6 months in Covered Calls. So I decided to move up to Leaps, a similar technique except instead of using a stock to cover the option you use a far out (at least 1 year in the future) option or a leap to cover a shorter term option. This requires much less capitol outlay and greatly increases potential return. It required more management time however, and this is where I miscalculated.

Because I work during the day, I could not stay on top of the changes to respond quickly enough to make the return needed to stay ahead or even stay out of trouble, especially when the market started to drop. If you can't get out of these positions in a timely manner, the Leap starts to lose value just because of it's age and at some point you have to sell it for a loss or invest more money and roll it out to a later date Leap, which can often cost quite a bit. I used all of my cash to do this last year and now I need to do it again in the next few months but all my cash is tied up in nearly w******** options. Out 55K invested I have less than 5K left. I even paid extra to attend a chart reading seminar and use the charting tools they developed. Things got exponentially worse. I went to 2 seminars, read the book, reread the book, utilized the technique and almost every trade I made did the opposite of the prediction. My biggest contention with CSE is that I tried to get help when things first started going south, but they wanted $1000/hour for a one on one consultation which I had at the time, but the CSE expert that I was trying to arrange a session with kept cancelling and before long my cash was gone invested in rollouts. Before this I had joined a daytime trading seminar, held a coupe of times a month via teleconference, put on by CSE, but one day Joseph didn't like one of my questions and kicked me off the line, no attempt clarify or let me respond, just boot, your out. Joseph does this a lot. It may have been a stupid question but perhaps walking me through it would have given me some insight.

I know that many of his clients make a lot of money - mostly ones who came in with a lot of money to begin with, but this little guy is hurting. I paid them my money and got booted. They do have wonderful tools to use if you are actively trading, but since my potential for closing much less opening a new position in the next 12-24 months is very low, I canceled my toolbox subscription to save me the $100/month until things recover. I will try to come up with cash to roll out my leaps into 2011 so when the stock market returns I will be able to recover my losses, get out of Leaps and return to the nice cozy 3-6%/month covered calls has to offer.

Do covered calls but be very careful about Leaps

Dan Stevens writes:

Subject: Word or Warning

I also learned this technique from Joseph and Aaron and did very well the first 6 months in Covered Calls. So I decided to move up to Leaps, a similar technique except instead of using a stock to cover the option you use a far out (at least 1 year in the future) option or a leap to cover a shorter term option. This requires much less capitol outlay and greatly increases potential return. It required more management time however, and this is where I miscalculated.

Because I work during the day, I could not stay on top of the changes to respond quickly enough to make the return needed to stay ahead or even stay out of trouble, especially when the market started to drop. If you can't get out of these positions in a timely manner, the Leap starts to lose value just because of it's age and at some point you have to sell it for a loss or invest more money and roll it out to a later date Leap, which can often cost quite a bit. I used all of my cash to do this last year and now I need to do it again in the next few months but all my cash is tied up in nearly w******** options. Out 55K invested I have less than 5K left. I even paid extra to attend a chart reading seminar and use the charting tools they developed. Things got exponentially worse. I went to 2 seminars, read the book, reread the book, utilized the technique and almost every trade I made did the opposite of the prediction. My biggest contention with CSE is that I tried to get help when things first started going south, but they wanted $1000/hour for a one on one consultation which I had at the time, but the CSE expert that I was trying to arrange a session with kept cancelling and before long my cash was gone invested in rollouts. Before this I had joined a daytime trading seminar, held a coupe of times a month via teleconference, put on by CSE, but one day Joseph didn't like one of my questions and kicked me off the line, no attempt clarify or let me respond, just boot, your out. Joseph does this a lot. It may have been a stupid question but perhaps walking me through it would have given me some insight.

I know that many of his clients make a lot of money - mostly ones who came in with a lot of money to begin with, but this little guy is hurting. I paid them my money and got booted. They do have wonderful tools to use if you are actively trading, but since my potential for closing much less opening a new position in the next 12-24 months is very low, I canceled my toolbox subscription to save me the $100/month until things recover. I will try to come up with cash to roll out my leaps into 2011 so when the stock market returns I will be able to recover my losses, get out of Leaps and return to the nice cozy 3-6%/month covered calls has to offer.

Do covered calls but be very careful about Leaps