07:52 AM, 24 Feb 2017 (AUS EST)   The market is currently closed       

Trading Options Seminars: What You Will Learn in a Teaser Seminar

After reading about options, some will decide that this type of investment is right for them. But they may also feel ill-equipped to start trading right away. Some may choose to buy a book, or subscribe to a website to learn more about option trading strategies. Others prefer the person to person contact that can be had at an options trading seminar. What really takes place behind the closed doors of these elite training sessions?

What You Will Learn in a Teaser Seminar

What will you be shown and taught at a teaser seminar that is usually free or offered at a very low cost?

When you sit down at the teaser seminar, you will likely hear of massive profits made from students and teachers adhering to a certain course and strategy. One website lists these as the numbers given at one (we will leave them unnamed) company seminar.

  • $60,000 profit in six weeks on a $2000 call option – a quick 3000% profit
  • $50,000 profit on a $675 option (about 7000% profit)
  • A customer turning $94,000 into $638,000 (579% profit) by following the ***** system.

Because they are trying to sell you a product, you will likely hear very little about losses or risks. Some of the options training companies will also show videos that depict complex strategies that claim to make large profits.

Caution Necessary at Options Teaser Seminars

Some caveats to watch out for is the cost to learn their methods, the cost of trading, and on-going memberships. These seminars may try to employ high pressure tactics to sell their manuals and expertise at a lower rate if you buy immediately on credit. However, the price may be far from cheap.

  • Many seminars charge $4,000 to $12,000 for course materials

Then you need to consider the cost of trading options. Many quality discount brokerages allow online options trading for $15 per transaction (some more, some less). What do many of these seminar platforms cost per trade?

  • Some companies may charge up to $80 plus per trade

Also factor in what they may charge for on-going memberships and so-called professional advice.

  • Many memberships to options trading advice costs $350 per month.

Just the cost for trading one year with such firms might cost as much as $25,000 in fees for materials, platform use, and membership dues. Averaging this over 100 trades is quite expensive.

A Cheaper and Better Way to Learn?

If you are reading this, you have already taken a step in the right direction for a cheaper way to learn and practice. Buy a book on option basics, or read the tutorials at a website such as this one. You will learn the basic principles and strategies for far less than these seminars.

Second, start performing mock trades with an options simulator to gain experience without losing money. Try a variety of option tactics and strategies to see which ones work well with you. As you learn and become more advanced, you can browse specialized bookstores or low cost subscription services that teach you more complicated techniques. Most often, investors with long and prosperous careers will usually trade in a straight-forward manner. They will generally not trade obscure and short-lived anomalies.

In the end the choice is yours to make: seminars that will teach you some tactics at a high cost or being self-driven and learning from books and the Internet.