“I’m Reading A Course By Bernie Schaeffer. Is it a Waste of Time?”

Posted by Pete Stolcers on May 22

Option Trading Question

I am reading Bernie Schaeffers course on 10 Days to Succesful Options Trading. Am on the right path? Is he reputable, or am I wasting my time?

Option Trading Answer

Bernie has a great reputation. If you are reading anything on option trading, it’s not a waste of time. You are doing the right thing. Read everything you can get your hands on and don’t overpay for expensive courses. In every book you will find things you agree with and things that you don’t agree with. Over time, your knowledge will grow and you will define your trading personality. From my perspective, if I can learn one or two new things in an entire book, it was worth the time. I have not reviewed Bernie’s course - let me know what you think. 

Option Trading Comments

• On 04/23, Mike P said:

  If I sell covered calls against stock I own or deep in the money leaps calls I own and then turn around and buy deep in the money puts, isn’t this pretty riskless? I would buy deep enough in the money puts and calls so there is little extrinsic value and the stock price movement up or down is offset by each put and call i own. Then, to generate cash, I sell calls covered by the stock or deep in the money calls. As an example, I buy Lehman stock at $44, sell the may 44 calls at $2.50, and buy the Jan10 90 puts for $46.65. If my shots calls have a chance of assignment, I just roll them out. What do you think?? Then I continue this process for the next 18 months.

• On 05/01, Pete Stolcers said:

  Hi Mike,

  Your strategy can be used. Just remember, with all of the hedging, your returns will be consistent, but small on a percentage basis.

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