Thousands of Investors Crushed by This Mistake

Comments (3)

  1. REALLY? says:

    “Well, if the stock falls to that level within the time frame, the put option seller has to fulfill his or her obligation and purchase the shares.” AND PAY THE BUYER HIS GAINS AS WELL!


  2. Mr. Knowitall says:

    Okay, if I follow this strategy, there is a 90% chance I will not get to buy the stock I really want to own. And, most likely, the price of the shares advance further so I look again to buy and the price is higher. It seems to me the trouble is options is . . . you are always giving up something, there is no free lunch.


  3. Charles says:


    Lee’s recommendation is about making money based on people’s fear. They buy “insurance” in the form of buying puts.

    Most of them do not know how little protection they get by buying “at the money puts” because the “delta” of an at the money put is very small. It’s like buying an insurance policy for a motorcycle when your chauffeur drives your limo.

    When I want to buy undervalued stock, I wait for a recession when everyone else is scared.

    My philosophy is to never let a good recession go to waste. That’s when I buy stocks. When the market is hot, I sell puts on a pullback.

    This is a difficult concept to master, because it is counterintuitive.

    You pay premiums for homeowner’s insurance every year, but how many times has your house burned down, and been replaced by your insurance company? None, right?

    So, why do you still pay it?

    Puts are like insurance policies, those who fear the boogey-man buy them. So, why not sell people boogey-man insurance?

    Options expire worthless 80%+ of the time. Lee is teaching you how to win 80% of the time.

    I’ll take those odds. And, no, I don’t know Lee or subscribe to his service, but I understand the thesis of his service.


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