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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • A New Direction For Options2Wealth (Part 2)

    I am very excited about starting this new journey with my blog, Options2Wealth, and want to sincerely thank all those who have agreed to join me in making a difference by becoming agents of change and by donating a percentage of their profits to non-profits...

    As you all know, Adam Grant's book, Give and Take, helped me in formulating my plans for the blog's new direction...and those who took the time to read Give and Take, know about Grant's eureka moment when his research revealed that the most successful and the least successful folks were "Givers."

    What gives?

    Yes, let me repeat: Grant's terrific research revealed that the most successful and the least successful folks in the world were neither the "Takers" or the "Matchers" but the "Givers."

    However, the one trait that the least successful "Givers" lacked was the bility to identify the "Takers" and banish them from their lives...

    Because we all want Options2Wealth to be very successful in its new mission of making a tangible and measurable impact on our communities by helping local non-profits, it is important that we take heed of Grant's research and only let "Givers" be part of our journey...Because, if we allow in the Takers, then, as per Grant's groundbreaking research, O2W will fail in its mission...And since failure is not an option, therefore, I will need everyone's help in identifying the "Takers" and ensure that they are kept at bay...

    :-)

    Plan going Forward: For all those who have not followed the blog since its inception, let me share a quick overview: I started this blog as an experiment to prove that equity options are not risky, if one learns to read stock charts...in fact, Options are the most efficient wealth making tool available...And the best part is, they're LEGAL...no need to skirt the law by fishing for insider information...To prove my point, I started an experiment on December 31st, 2012 and for the following 6 months, shared publicly a $10,000 trading portfolio that in its first 5 months racked up over $1 million in trading profits...and when my 6 month, very public experiment ended on Friday, June 28th, 2013 my trading portfolio had gained 10,644.80% and was worth $1,074,475.06, up $1,064,475.06 from its original seed capital of $10,000...

    Afterwards, a number of you asked me to start a brand new $10,000 experiment and again share my trading moves with readers here...Even though I continued to share my knowledge of chart reading, and options, on my blog, I demurred from starting a new trading portfolio...

    But after reading Adam Grant's book, I had an epiphany: I realized that I could harness the power of Options2Wealth and by bringing in the fundraising platform of my company, DonorNation, develop powerful synergies that could make a positive impact by providing much needed funds to various school PTAs and other non-profits...

    So here's my new gameplan:

    1) The newsletter will be online and access will be limited to only those who have been invited.

    2) I have formed an LLC company called Options2Wealth and this entity will be funded with a seed capital of $10,000. (Casey, who has been a terrific help with the logistics of setting up the newsletter, graciously and generously offered to donate the $10,000 seed capital. I was surprised, and touched, by his offer but decided to fund it with my own money.)

    3) The initial seed capital is actually earmarked as a donation by my family for the benefit of various non-profits who are registered on the DonorNation platform and these funds will be 100% invested in an Options2Wealth trading account set up at TD Ameritrade.

    4) Every quarter, the LLC will donate a percentage* of its adjusted trading profit(s) to various non-profits on the DonorNation platform. And since I won't withdraw any funds from this account for my personal needs, the account size should hopefully continue to grow, resulting in ever bigger quarterly disbursements to non-profits.

    5) Only those who have access to the newsletter and its website will have the ability to view my trading moves in realtime.

    6) In the newsletter, I will share my stock picks and explain the reason(s) behind my option bets with Candlestick and PnF charts...and of course, just like the original experiment started here almost 15 months ago, I will announce my buy and sell decisions in realtime and before the actual execution of the trade.

    When I first shared my blog's new direction with all of you here, I did not make an arbitrary decision as to what percentage I would like to see you all donate...instead, I asked all those who wish to join me on this new journey to share with me and others the percentage that each one of you would personally like to give to the non-profits...Even though a number of you shared that number, the majority of you who voiced support for my idea, did not...Since I want the blog to reach a consensus on this very important point, I urge all those who have not, to do so at the earliest...because unless you all agree on that percentage number, I won't be able to start the newsletter...so to all those who have held back on making this critical decision and share it here, please hurry...

    * Please note that the percentage that will be donated out of the Options2Wealth's trading portfolio will be the same percentage number that I expect this board to decide as a consensus.

    Also, it is very important that all those who want to be included in the blog's subscription to contact Casey as soon as possible so that he may add your name to the list...Casey will shortly share the newsletter's website registration and login instructions to only those who have contacted him directly...

    Two questions that were posed to me regarding the blog's new direction deserve answers:

    1) Can non-profits who are not currently on the Donornation.org website benefit? Answer: Absolutely! Even though our focus for now is to support San Diego County based organizations, if anyone here wants to support a favorite non-profit that's based elsewhere, then please have them register on DonorNation and then you may donate your profits to that particular organization.

    2) Why am I requiring the donations to be funneled through DonorNation? Answer: I can assure you that it is certainly not for the revenues that my company will generate from these donations...To be absolutely frank, the main reason(s) I want the donations to be made through DonorNation is for me to a) easily track how much of a difference my endeavor is making in supporting non-profits, and b) To ensure that only "Givers" be part of this journey by identifying the "Takers" and remove their names from the subscription list.

    (Since I like to be completely transparent, I want to make sure that everyone here understands that DonorNation will charge a 6% facilitation fee on all monies donated though the platform.)

    I am currently traveling out of the country but will be returning to San Diego on Monday...In the meantime, I want all those who want to be included in the subscription but have a) not disclosed the percentage of their profits they are willing to share, or b) not reached out to Casey, or c) done neither of the above, to please do so at your earliest convenience...

    Hope to get this train up and running asap!

    karim

    Mar 21 4:22 AM | Link | 36 Comments
  • A New Direction For Options2Wealth

    Two weeks go, I recommended the book Give and Take...I'm gratified that a number of you took my advice and ordered the book...in that same post, I also alluded to my wish to take this blog, now in its 2nd year, into a new direction...

    When I wrote my first post a little over 13 months ago, the goal was to show how just about anyone can use Options, the most efficient, and legal, wealth building tool known to man (please forgive the hyperbole!).

    I hope my blog has succeeded in removing the cloak of secrecy surrounding derivative trading...Of course, the folks on Wall Street have for decades used Options to make insane profits and laughed all the way to the bank...but to the rest of the investing public, the word "Options" evokes extreme risk that must be avoided at all costs...

    To dispel this undeserved myth I chose the name Options2Wealth and over the past year have tried to democratize the knowledge of Options and chart patterns gained over 20+ years, with everyone...I am proud of the fact that today, many of my readers, armed only with technical charts and Options, with limited effort and may I add, no insider information :-), have put their individual investment portfolios on steroids, leaving in the dust the best fund managers in the US...Here is a sampling of the public comments posted over the past year:

    greggbuttery Comments (12)

    SPWR 01/18/2014 $15.00 Cost Basis $13,518.00 Proceeds $26,525.00 96% increase
    SPWR 06/26/2013 $15.00 Cost Basis $12,056.00. Proceeds $87,389.00 624% Gain.
    Still holding all my WFR July 20th 2013 .42 purchase per contract, $2.18 last quote, so up 419%.
    Thank you
    Gregg

    3 Jun 2013, 08:20 PM

    Spak007 Comments (19)

    I started following it around the first week of May, so roughly a month ago, which was coming late to the party but never the less very wise for me.. I have pretty much mimicked your trades from that point but with lower amounts of the calls (since they were more expensive when I got in) and am up about 420%. Thank You!!!

    4 Jun 2013, 05:52 PM

    Scottali Comment (1)

    I took a chance and followed your moves on Sun Power, I started with 5k slowly that same week put another 25k and bought calls for June, in two weeks my portfolio was up 400%, I cashed out at 23.43 and followed your move into WFR and got options for July and October, now as of June 3rd the portfolio is up 800%. I am still in it and thank you for sharing your wealth of knowledge with everyone.

    5 Jun 2013, 12:45 AM

    waynelabel Comment (1)

    I started only one month ago investing based upon the knowledge I have gained from this blog and talking with Karim. In that one month my investment has grown more than 250% Not bad for a start and for one month
    Thanks Karim, I look forward to making many more investments in the future
    Dr. Wayne Label
    6 Jun 2013, 12:57 PM

    Solararon Comments (6)

    I have just started to try options trading over the last few weeks from following this blog. I started with about $7,000.
    I have made some blunders, but I am up way more than from buying and holding stock.
    On Positions I have open and closed I am up 89%
    I am still have
    SUNE OCT and JAN Calls
    SPWR OCT CALLS
    SPWR May 18 '13 $23 Call $(162)Short-100%
    SPWR May 18 '13 $23 Call $(276)Short-100%
    SPWR May 18 '13 $23 Call $(162)Short-100%
    SPWR Sep 21 '13 $23 Call $221 Short31%
    SUNE Jun 22 '13 $8 Call $2,513 Short330%
    SUNE Jun 22 '13 $8 Call $99 Short311%
    SUNE Jul 20 '13 $8 Call $2,822 Short248%
    SUNE Jul 20 '13 $8 Call $881 Short245%
    SUNE Jul 20 2013 10.0 Call $(47)Sell -9%
    SUNE Jul 20 2013 10.0 Call $35 Sell 3%
    TSL Jan 18 '14 $7 Call $(350)Short-34%
    NET GAIN/LOSS $5,574 NET PERCENT 89%

    17 Jun 2013, 11:24 PM

    Play.Money Comment (1)

    I actually took my play money and followed just a few of Karim's moves starting in February. It was a bumpy ride at first with my portfolio going up and then back down below my initial investment amount. But as of 6/18, I am up 1900%.

    19 Jun 2013, 04:32 PM

    Andy Zelenak Comments (169)

    Sold one of my first options today for a 60% gain (March SPWR call at $20). It felt great!

    2 Oct 2013, 09:40 AM

    greggbuttery Comments (12)

    I backed the truck up on the Oct $2.00 calls at $.75, and sold them today for a 633% gain.
    Thanks,
    Gregg

    13 Jan 2014, 09:03 PM

    Other than the public messages highlighted here, there were many private messages where folks shared with me their amazing returns, but because those messages were private, I have decided not to share them here...

    After I stopped my Options2Wealth public portfolio, many of you reached out to me, both publicly and privately, offering to pay for a subscription-based newsletter where I would publicly share option trades made in my personal portfolio, just like I used to do here last year with my public portfolio..Though flattered by the many requests, I could not bring myself to go against my blog's raison d'être: share my knowledge for free...

    A little over a month ago, I received an unexpected email from one of the blog's regular readers, Casey F, who uses the handleKCCase3...Casey offered to lend me his time, and talent, as a form of a "pay back" for making him a better trader...Casey was not aware of Adam Grant's book, let alone that I had recently read it..Subsequent to the email, Casey and I spoke on the phone and our conversation helped crystallize in my mind the new direction that I would like to take this blog in...

    But first, getting back to the comments posted above...I could not help but notice that Gregg Buttery, who I've never met, and know him only through here, has probably been the most successful blog follower...I asked Casey, to do an analysis of the trades that Gregg has been gracious enough to share publicly, and he came up with an estimate shown below...

    (click to enlarge)

    Even if Gregg's returns were half of Casey's estimate, his performance is pretty amazing! To help put it in perspective, I recently highlighted SAC Capital, Steve A. Cohen's top performing, and now defunct, fund, that in 2013 delivered a very impressive 20.10% return, however, over the years, had consistently delivered an even more impressive 60%+ returns for its investors...and, to be privileged to be a part of his fund, those investors had to give back more than 50% of their profits...In other words, his investors got 30% return after paying his various fees...You may watch the clip that details his fee structure at the 8:00 minute mark in this video: www.pbs.org/wgbh/pages/frontline/to-catc.../

    And also in this article: finance.yahoo.com/news/cohens-sac-ends-l....html

    "For two decades, Cohen, 57, has delivered some of Wall Street's best returns with average annual earnings of 30 percent. While Cohen charged some of the highest fees -- including a 50 percent performance fee -- his gains nonetheless attracted dozens of wealthy investors including the Blackstone Group."

    In other words, Gregg Buttery's portfolio outperformed the most successful fund manager in the country by an order of magnitude, and then some!

    Options2Wealth's New Direction:

    After many private discussions with friends and business associates who have financially benefited from my blog and many, many hours of thoughtful contemplation, I have decided to start a private, investment newsletter with a couple of novel twists:

    1) The newsletter will only be available by invitation and only to those who are "Givers" (Adam Grant's book played a key role in my decision and for those who have taken the time to read it will be able to understand, and appreciate, my motivation...)

    2) Instead of charging a fee, I only ask of those who receive my newsletter, to donate, every quarter, a percentage of their adjusted profits, to a non-profit of their choice, through my DonorNation.org platform...

    What that percentage should be, I leave it for my readers to decide...I trust that you all will arrive at a reasonable and fair consensus...

    The monies donated will be strictly on an "honor" basis...Nobody will be peering over anyone's shoulders to ensure that they are sharing the agreed percentage...I have full confidence that you all will do right...

    Full Disclosure: Any monies donated through the DonorNation platform will incur a 6% transaction / facilitation fee that will be deducted from each, individual donation and collected by PayPal on behalf of DonorNation...

    Do understand that this new plan of mine is in its very early, formative stage and therefore, subject to numerous iterations...While the board here debates the merit, or lack thereof, of my contemplated move, my legal team will concurrently put the proposal through the requisite whetting process to ensure that I'm not running afoul of any governmental oversight agency, state or federal...Only after I have received a green light from my lawyers, will I start developing the newsletter...(Again, Casey, who happens to be a CPA, has been very gracious to offer his help in managing the logistics...additional volunteers are also welcome :-)

    In the meantime, I open up the board for discussion...please share your thoughts and ideas about my planned direction, both pros, butespecially the cons...

    :-)

    kp

    Disclosure: I am long AAPL, ALIM, ARIA, ATHX, CYTR, GALE, GTAT, HALO, PSDV, RMTI, SNTA, SPWR, SUNE, TSL, VTUS, ZIOP.

    Feb 08 5:13 PM | Link | 63 Comments
  • Give And Take

    A few months ago, I had the very good fortune to watch a Charlie Rose interview of Adam Grant, the author of the book Give and Take...Charlie introduced him as "the youngest tenured, and highest rated, professor in Wharton School of Business' history." Below is a link to the Charlie Rose show where Adam Grant talks about his book…(his interview is the last segment on this particular show)

    http://www.charlierose.com/watch/60214085

    May I request that everyone who follows my blog take 15 minutes out of your day and watch this interview...

    After watching the show, I immediately ordered the book and I have to tell you, it was an eye opener...this data driven, heavily researched book proves without a shadow of a doubt that to be successful in life, one needs to be a 'giver."

    (click to enlarge)

    After giving you all a few days to watch this show, and possibly even read the book, I will come back to share with you my plans, going forward, for this blog...

    :-)

    kp

    Jan 15 11:53 AM | Link | 26 Comments
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