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MARKET MENTORS
by John A. Sarkett, developer, Option Wizard®

Before you pay thousands, invest $25.95 to do your due diligence on the entire field of market mentoring.



MARKET MENTORS

From Amazon.  By John A. Sarkett, developer, Option Wizards®: software and author of Option Wizards®:  real life success stories from the financial markets, Option Wizard® Trading Method, Extraordinary Comebacks: 201 Inspiring Stories of Courage, Triumph, and Success (Amazon category best seller).  300 pages, ©  2008, 2012

A new cottage industry has sprung up on the financial landscape:  options, and trading education.  It started some 20 years ago, gained popularity 10 years ago, with large seminars, and since then has grown rapidly.  This new book surveyed the field initially several years ago, and then again in 2012, to catalog changes.  Market Mentors covers programs whose fees range from free to $25,000, and points in between.  As with other professions, there is a vast range of approach from mentor to mentor.  A newcomer to markets and options can benefit from mentoring.  The author recommends:  study the field, then ask questions.  And then be prepared for hard work, lots of it.  Trading is not an easy way to earn money, those who tell you it is should have one mark against them from the outset.

 

1.               Introduction:  the importance of due diligence

I started this project in 2008.  A distilled version appeared in the September, 2008 SFO as “Back to School:  Choosing your options mentor.” 

Several years had passed by now since my initial survey of the mentoring business; someone suggested an update, especially since so many changes had taken place.  I was curious myself to take another look at the field.  So here it is.   In my opinion, it is all the more interesting to show the 2008 state-of-the-industry, and then the 2012 update, to see how the various firms and players have progressed, transformed, changed.

The bell curve has surely widened: the leaders have increased their lead, and some have kept pace, and others have fallen behind.  Some mentoring firms have expanded, some have acquired others, some have been acquired, and some have, sadly, gone out of business, and some without a trace, calling to mind this quote:  Dying is nothing. You have to know how to disappear. Dying comes down to a biological chance and that is of no consequence. Disappearing is of a far higher order of necessity. Baudrillard

Some go up and some go down, and some go sideways, and so there is a lot to learn here, in this study of the mentoring business, about options, people, education, business, life.  I know I learned a lot.   I am glad I could share what I learned and put this volume in your hands.  If you are thinking of investing hundreds, even thousands in mentoring, this book can be part of your due diligence.  This, or something like it, is a must read.   I draw some conclusions at the end. 

But we can’t overemphasize:  do your due diligence.   Don’t rely on bold claims or charisma or dreams.   Look into some free services first perhaps (CBOE, etc.);  see our chapter on that (although see the chapter here from Steve Lentz, Optionvue;  he tackles the limitations of “free”).  Then, if you feel you need a personal mentor, talk to at least 3 to 5 mentors before hitting that credit card for thousands of $$s of instruction.  Develop your own criteria, e.g. does the mentor himself trade?  Does he have a track record for all to see?  Is he responsive?  (That latter point is not inconsequential.  Some don’t answer emails, some post no phone numbers, how can that be, you ask?  Yet it’s true.)  How long has he been around?  Add some questions of your own.  Stick to your guns.  Don’t be swayed by charm.  Remember, mentors make their money by talking, after all.

So here goes, the original material from 2008, and then, most interestingly, the update 2012.  Only a very few publications follow up on their recommendations, Forbes and Barrons come to mind.  The follow up is the most interesting part of the presentation, in my opinion.

So we begin..........................


 

MARKET MENTORS
by John A. Sarkett, developer, Option Wizard®

 

QUOTES III
TABLE OF CONTENTS IV
ACKNOWLEDGEMENTS IX
 

1. INTRODUCTION: THE IMPORTANCE OF DUE DILIGENCE 10
One, maybe two, maybe three million men on the march 11
The 1% to 2% 12
Caveat emptor 14
 

2. CONDOR OPTIONS (WOODARD, JARED) 15
Risk-defined market-neutral 16
Published results 17
2012 UDPATE 21
 

3. COTTLE, CHARLES 24
2012 UPDATE 34
 

4. HARVEY, DAN 39
2012 UPDATE 62
 

5. INTERACTIVE BROKERS 65
2012 UPDATE 68
 

6. KAPLAN, PETER 71
2012 UPDATE 74
 

7. LOVVORN, KERRY 75
2012 UPDATE 80
 

8. MARKET NEUTRAL OPTIONS (ANG, GARY) 83
Advisory performance, track record 84
Example Trade: RUT Iron Condor 85
2012 UPDATE 88
 

9. ONLINE TRADING ACADEMY 90
2012 UPDATE 98
 

10. OPTION PIT 103
 

11. OPTIONVUE (LENTZ, STEVE) 106
Futures options 107
How the program works 108
Strategies 109
Customer feedback 110
Free for prospects 111
Additional background on Steve Lentz: 112
OptionVue software 113
2012 UPDATE 113
 

12. OPTIONETICS 117
2012 UPDATE 121
 

13. OPTIONS LINEBACKER (SEVERSON, CRAIG) 123
Newsletter 124
Seminar 124
1:1 webinar 124
2012 UPDATE 137
 

14. OPTIONS MENTORING (ONDERCIN, JOHN) 146
Why should traders consider mentoring? 147
How the program works 148
Strategies: low risk 150
Testimonials 152
2012 UPDATE 154
 

15. OPTIONS STRATEGIST (MCMILLAN, LARRY AND FREIFELD, STAN) 155
2012 UPDATE 160
 

16. OPTIONSXPRESS 165
2012 UPDATE 167
 

17. PARNOS, MIKE “COUCH POTATO” 169
A PARNOS TESTIMONIAL 172
April, 2007 THE PARNOS TRACK RECORD 173
THE IRON CONDOR 178
Criteria for Creating an Iron Condor 178
Choosing the Underlying (Index or Stock) 179
Iron Condor Example 179
Target Profit 179
IRON CONDOR REVIEW – PART II 180
Iron Condor Maintenance Requirements 180
Our Exposure – Cash at Risk & Maximum Loss 180
Break-even Points 180
Adjustments 181
2012 UPDATE 181
 

18. SHERIDAN MENTORING (SHERIDAN, DAN) 184
CALENDAR SPREADS 185
HOW DO I MAKE MONEY? 185
TWO KINDS OF CALENDAR SPREADS: GUERRILLA AND CAMPAIGN 185
CONVENTIONAL WISDOM: TWO VERY MISTAKEN NOTIONS 186
(MINDLESSLY) SELL OUT-OF-LINE HIGH IMPLIED VOLATILITY AND BUY LOW IMPLIED VOLATILITY? NO! 186
(ALWAYS AIM TO) LET THE NEAR MONTH EXPIRE WORTHLESS? 189
SPECIAL TIP: GO WITH WHAT YOU KNOW 191
WHEN DO CAMPAIGN CALENDARS? 192
WHEN DO GUERRILLA CALENDARS? 192
THE RULES: CAMPAIGN CALENDARS 192
FIND CALENDAR CANDIDATES 192
FILTER CAMPAIGN CALENDAR CANDIDATES 193
PLACE THE CAMPAIGN CALENDAR 197
MANAGE THE TRADE 199
THE RULES: GUERRILLA CALENDARS 205
FIND GUERRILLA CANDIDATES 205
FILTER GUERRILLA CANDIDATES 205
PLACE THE GUERRILLA CALENDAR 207
MANAGE THE GUERRILLA CALENDAR 208
THE REAL WORLD: A GUERRILLA CALENDAR -- BK 208
FIND CANDIDATES 209
FILTER CANDIDATES 209
PLACE THE GUERRILLA CALENDAR 209
MANAGE THE TRADE. 211
THE REAL WORLD: A CAMPAIGN CALENDAR -- HD 212
FIND CANDIDATES 212
FILTER CANDIDATES: 212
PLACE THE CAMPAIGN CALENDAR 213
MANAGE THE TRADE 215
A CLOSING WORD ON ADJUSTMENT: IT’S NOT ALL IN THE WRIST IT’S ALL IN THE TIMING 216
VOX POPULI, THE VOICE OF THE PEOPLE: DAN’S STUDENTS ON DAN, IN THEIR OWN WORDS, A to Z, AND THEN SOME 217
2012 UPDATE 257
 

19. THINKORSWIM (SOSNOFF, TOM AND KINAHAN, JOE “JJ”) 259
70 coaches on staff 261
More on Red Options 262
2012 UPDATE 263
 

20. TASTYTRADE.COM 268
 

21. TRADE THE MARKETS (CARTER, JOHN) 271
2012 UPDATE 274
 

22. OTHER MENTORING SERVICES … 275
 

23. FREE MENTORING 276
 

24. OPTIONS INSTITUTE, CBOE LECTURER BIOS 277
2012 UPDATE 280
Options Institute Plus 280
Beginner Level Syllabus 283
Intermediate Level Syllabus 284
Advanced Level Syllabus 285
Seminars 286
A Professional Approach to Trading SPX - OI Alumni 286
A Professional Approach to Trading SPX - Option Pit 286
A Professional Approach to Trading SPX - TheStreet 286
Index Options: Trading and Managing Spreads 286
Money Smart Week - CBOE Tour 287
NEW Seminar Series 2012 - Be a Successful Retail Options Trader! 287
Options Extreme 287
Options for Portfolio Management & Institutional Investors 287
Options Institute Plus - Level 1 Beginner 287
Options Institute Plus - Level 1 Beginner CS 287
Online courses 287
Basics of Spreading: Butterflies and Condors 287
Basics of Spreading: Ratio and Backspreads 288
Basics of Spreading: Straddles and Strangles 288
Basics of Spreading: Time Spreads 288
Basics of Spreading: Vertical Spreads 288
Covered Call Writing 288
Fundamentals of CBOE Index Products 288
Fundamentals of Equity Options 288
Fundamentals of Index Options 289
Index Options 289
Tasks 289
Trading Tools 289
Strategy of the Week Discussions 289
Strategy of the Week Webcasts 289
 

25. OPTIONSINSIDER.COM 290
 

26. SOME CONCLUSIONS 292
TRACK RECORD 292
COMMUNITY 292
DUE DILIGENCE 292
SHOP AROUND 292
KNOW THYSELF 292
START SMALL 293
2012 UPDATE 293
Afterword 295
 

Background 297
ABOUT THE AUTHOR 297
REVIEWS FOR OPTION WIZARD® TRADING METHOD VOLUME I 298
27. INDEX 304

 


 

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