David Caplan and Opportunities in Options
JRacine690
Has anyone had any experience with David Caplan and Opportunities in
Options?? I am curious as to anyone's experiences.
Thanks,
John
Ray Kurian
I attended a quick one day seminar in Kansas City a few weeks ago, and came
away likeing what I heard. They are always looking for an "edge" in their
trading.
Most of their trades are longer term. a 30 day trade for them is considered
short term.
His books "The Options Secret" and "The New Options Secret" are very good.
I picked them up at either Barnes and Knobles or Borders, (can't remember
which). Might want to look at them.
Ray Kurian
Randy Place
I just saw the following comments on Opp. in Options in another thread.
You can be the judge.
Randy
"Commission $69-$75 ($65 plus $4-$10 fees) for a
round turn, the same for options. One former
client says that "every recommendation they've made for trades over
the [last] seven months has lost money!" Another says: "I read Dave
Kaplan's book. . .opened an account and instructed the rep. to trade
strictly by Kaplan's recommendations, which he did. My $7,000 turned
to $1,360 in 4 months. Spread commissions were $260 . . .adjusted
numerous times, $260 each time.(5/11)" "Avoid the likes of Dave
Kaplan's Opportunities in Options. I got shafted by OIO for a large
amount, and as they do not record their telephone trades, I had no
recourse.(5/14)"
Ray Auxillou
Lets hear you sing that song, when you got $20,000 in losses. Do it first.
Ray Kurian (NOSPAM...@qni.com) wrote:
: I attended a quick one day seminar in Kansas City a few weeks ago, and came
: Ray Kurian
--
Trader
Only bad experience! Nothing good. I also heard some horror stories
from other friends.
FOG
Not to disagree with the your experience, but the commissions had nothing
to do with your losses. To Clintonese you: "It was the trades, stupid".
See my comments later in the the News group. You were taking risks you did
not know were there.
FOG
Caplin has a lot of good trading ideas.
The problem you guys in the public who are not almost professional traders
will have is the statements he makes. He has said things like a trade will
have an 80% probability of success. He has recently stopped making that
particular outrageous claim in writing but is now saying that a trade has
an 80% probability of ending up "in the money". Keep in mind that if you
pay $500 for an $8 call that expires at $8.01 you are in the money by only
$50 and have lost $450 plus fees and commissions. Another way of saying
that the statement is misleading to say the least.
Somebody called me the other day and told me that a broker at Caplin's
place in Ojai (sic) told him on the phone that he guaranteed a trade had an
80% probability of success. I told the guy to tell the broker that he'd
trade with him only if he made the statement on tape. The broker hung up
the phone.
Some of Caplin's trades have an extaordinary risk. He will typically buy a
put or a call in the middle of a strangle, which means he is writing
options both above and below the strike price. God help you if this
position moves against you faster than you can cover because the risk is
unlimited. Covering this risk also entails additional risk and more money.
Watch your asses with this guy.
Having said this, he has some very good trades and as long as you stick to
simple bull call or bear put spreads you might want to do them. Always,
always ,beware of of so-called "credit" spreads, the spreads that put money
in your account. They are called credit spreads because you are actually
borrowing the money, and borrowed money always has to be paid back.
Eric
FOG wrote:
>
I was with you basically until this last statement. Selling options
does put the money in your pocket, but it is not borrowed. You don't
pay interest on it, and you don't have to pay it back. If your position
goes against you, you may have to buy the option back at a higher price,
yes, but your statement that borrowed money always has to be paid back
is misleading in this instance.
azl...@netmedia.il
>Caplin has a lot of good trading ideas.
Then why bash him? Do you know of any book which tells how to trade
options, detailing researching, evaluating, planning, executing, and
reviewing strategies, outlining money management rules for each?
I think John in unto a good thing. John, read "The New Options
Advantage".
>
>The problem you guys in the public who are not
> almost professional traders
Not whats? Like whom?
>will have is the statements he makes. He has said things like a trade will
>have an 80% probability of success.
This "outrageous" statement was supported by a classic bell curve
"Fishback Chart" with the caption, for example,
"94% Probability of remaining in range of 106-118 for next 30 days".
It was referring to a Neutral Option Position where the goal of the
trade is a high probability of staying within the SOLD Put-Call
Spread. Seems to me that if that's your goal,
thereby to collect all the premiums, alas, less commissions and fees
(why doesn't anyone mention taxes?),
you could fairly say,
that the above spread, simply calculated, based on your choice of
Volatility parameter, has a 94% chance of success.
I suppose the Federation has it's stringencies on acceptable lingo,
but "success"?
>particular outrageous claim in writing but is now saying that a trade has
>an 80% probability of ending up "in the money". Keep in mind that if you
>pay $500 for an $8 call that expires at $8.01 you are in the money by only
>$50 and have lost $450 plus fees and commissions. Another way of saying
>that the statement is misleading to say the least.
Sure glad he didn't base such a claim on such a misleading example.
In my reading and listening experience, Mr. Caplan only recommends
BUYING options in circumstances meeting very demanding criteria,
occuring 1,2-4 times a year. Even then he comes over pretty strong
about employing strategies wherein one does not buy an option without
selling one as well, to give the trader a bit more edge.
In an NOP, "In the money" = earn all the premium collected on both
sides of the street. Another concept entirely from buying a lottery
ticket option.
Regarding the NOP: Available margin makes this excellent "game" closed
to penny ante player, like myself, for now. The money management
aspects of this trade, as expressed in "The New Options Advantage",
permits only 20% of the funds available for margin to be actually put
up as margin, even following a series of necessary envelope
adjustments. Put that together with Caplan's diversification rules
and patiently build up your capital using his other strategies.
>
>Somebody called me the other day and told me that a broker at Caplin's
>place in Ojai (sic) told him on the phone that he guaranteed a trade had an
>80% probability of success. I told the guy to tell the broker that he'd
>trade with him only if he made the statement on tape. The broker hung up
>the phone.
Maybe.
>
>Some of Caplin's trades have an extaordinary risk. He will typically
Typically?
> buy a put or a call in the middle of a strangle, which means he is writing
>options both above and below the strike price. God help you if this
>position moves against you faster than you can cover because the risk is
>unlimited. Covering this risk also entails additional risk and more money.
For some reason the No-Cost Option Stategy found its way on to what I
call the Big 6 List (this grows to about 9 sometimes). There it
merited a four line definition. It is nowhere else talked about, much
less recommended. No-Cost Futures Hedging is another story however.
>
>Watch your asses with this guy.
Don't you mean Aces?
>
>Having said this, he has some very good trades
"His" strategies are noneother than the basic, classic strategies,
usually the simplest of them. How, when and why to use each and how
to find the required edge or sit out the hand (He's got me talking
that way too!) were, by themselves, well worth the "lost leader" price
I paid to the OIO Publications office.
> and as long as you stick to
>simple bull call or bear put spreads you might want to do them. Always,
>always ,beware of of so-called "credit" spreads, the spreads that put money
>in your account. They are called credit spreads because you are actually
>borrowing the money, and borrowed money always has to be paid back.
I assume you've stopped speaking about Opportunities in Options in
this sectin. Mr. Caplan who is a bit more flexible and not quite so
disparaging, seems to prefer reserving credit spreads for special
circumstances.
"Successful" Options Trading
Dave Rosengarden
Trader <Super...@juno.com> wrote in article
<339743e6...@news.gdi.net>...
Oy veh! Poor John, going around looking for an idea on topics he's heard
about. And what does he get. NOTHING BUT BAD EXPERIENCE... Well, as I am
sifting through this message, it does strike me curious as to what exactly
this course is all about (a summary is fine) and why the hell is it
considered so BAD? People loose their skin? No info, what are the
experiences EXACTLY or where can one be referred to find out more info to
back up what you have heard.
I think it's pretty dangerous to make a comment like that with no meat to
it. Something that could have seriously benefited John has now probably
been cast into the dark evil shadow place in his mind. (He'll never go
there again!)
Anyway....I think the point has been made
EarthWarden
azl...@netmedia.il
I stand corrected. In a section of miscellaneous trading insights
(pg. 178 "The New Options Advantage") a no-cost option strategy was
recommended in response to a rare circumstance in the market. A put
was sold $10,000 ! out of the money, $4,000 under support, and a call
sold $4,000 out of the money. This free (less commissions and fees,
of course) "wait and see" position was secured with a close out order
at support. A very sweet strategy, with an over 10 to 1 risk/reward
ratio, in the very unique circumstances of September 1989 bonds.