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:
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%.
3 Jun 2013, 08:20 PM
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
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
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
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
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
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
I backed the truck up on the Oct $2.00 calls at $.75, and sold them today for a 633% gain.
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...
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...
Disclosure: I am long AAPL, ALIM, ARIA, ATHX, CYTR, GALE, GTAT, HALO, PSDV, RMTI, SNTA, SPWR, SUNE, TSL, VTUS, ZIOP.