Options Trading Services

I've made no secret of my own Leveraged Investing philosophy and approach to investing.

But I realize that using trading stock options as part of a long term investing approach will not appeal to every investor and trader.

I've used a number of options trading services myself in the past. And when it came to choosing an options service, I always had the same three essential questions.

1. Is the person or people operating the service legitimate? By legitimate, I don't mean that a service has to be operated by someone with a specific type of Wall Street resume. I don't really need to see another staged photo of yet another big man in a big suit.

   But what's absolutely crucial is knowing that the service I'm considering is run by someone I can trust. I've been scammed by services in the past and it's infuriating.

   [Seriously - one such trading service I briefly used recommended an Embarq (EQ) call option. The next day the stock opened slightly lower, and continued going lower and lower. I monitored this position closely, both the call option and the underlying stock. At no point was the call position ever in the black! The trade continued to deteriorate and I ended up taking an approximate 30% loss on the call. And on the options trading service's results tracking page? The operator had the audacity not only to not claim a loss, but he actually credited himself with a small 7% gain! Now that's what I call a scam.]

   Trust is crucial.

2. Is the person or people operating the service competent? A service may be legitimate but still not be profitable for its members. Not to be crass, but what good are ethics if I can't make any money?

   If I'm paying for a product or service, I want to know that it's going to be worth the cost, both in terms of price and my time. Can I consistently make profits? Will I be able to make more money with the product or service than by just doing what I do on my own?

3. Will the service make me a better investor or trader? It's like that Japanese proverb. I don't want someone just to give me fish, I want to learn how to fish for myself. I want a service that helps me grow and become a better trader or investor.

   And if I ever stop using the options trading service? I want to be able to look back on my time with the service and say, "Hey, that was a very valuable experience. That was money well spent."

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