Why Option Alpha OptionAlpha.com is a scam (in my opinion) and why I don't think Kirk du Plessis makes any
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option alpha optionalpha.com for around eight years. I know that he is a major
and huge head start on me and actually the teaching aspect I don't think he
knows anything more than me I mean I worked on Wall Street investment banker
and completed five to ten billion dollars worth of transactions so as far
as like knowing actual finance I don't think I think he knows less not that
that really matters because it doesn't help you when you're trading at all but
I know that I'm relatively new in teaching people and I don't want this
video to come off as like me bashing the competition or anything like that like I
don't want to come off as a hater because I definitely do think that his
videos are very well produced I don't think that he's a complete fraud I just
think that he doesn't make any money from trading alright so I think that
what he teaches is OK you know he primarily teaches you to sell premium he
doesn't teach you to buy premium he doesn't teach you I don't think he
teaches technical analysis which is we all know is a complete bullshit maybe he
does like maybe he says that he's like done backtest and he has like indicators
what I know I can very accurately work very let me say with a very high degree
of confidence let me say it that way with an extremely high degree of
confidence I do not believe that he makes money trading or if he does make
money trading he makes a very small amount and I definitely believe that the
majority of his students do not make any money trading and there are a few
reasons you know I did a little bit of research the first reason is that he
primer tells you to focus on ETFs ETFs have
extremely low relative premium when you compare it to specific stocks so for
example if I was selling right now in an early October a $145 put on Facebook I'd
probably receive around $2 right so that would be basically a put that's like 8%
below Facebook's current market price I've received 2% I received you know $2
or whatever it is let's just make up a percentage let's say I'd receive around
one and a half percent premium for selling that put if I was selling a put
on the spice I mean ETF like Kirk recommends with the same 8% below the
current market price I would receive around half as much premium so remember
the only way that you get paid is by collecting premiums so automatically
you're receiving and bringing in half as much money the second thing is he's huge
iron flies iron butterflies which means that you're essentially selling
straddles on ETFs right so if right now the S&P is trading it around like $28.50
he would tell you to sell a straddle on SPY so you're gonna sell a spread on a
SPY so you're gonna sell the put side and you're gonna sell the call side that
and your and you're gonna sell verticals right like that's just so horrible so
even in the worst case scenario you're trapped with the vertical where you
mitigate the amount of premium that you receive you can't manage the position
and you're also encouraged to compensate because you're bringing in less premium
to trade too many contracts right so not only are you receiving less money by
trading the ETFs but you're also trading spreads and and you're trading straddles
which are horrible right like I would never ever trade straddles and that's
actually one of my criticisms of tasty works and tasty trade as well because
straddles with what's gonna happen is you your call side is almost invariably
going to get tested around 40 to 50 percent of the time so what do you have
to do you're then gonna have to spend more money on commission
to make adjustments to that position or let's say in the best case scenario you
let's say the the underlying doesn't really move okay you're still gonna have
to log in to your position like four or five times a day five or six times a day
just to make sure that that position does not exceed the upper bounds or the
lower bounds of where you set that straddle meaning that you're gonna be
really stressed out it's gonna occupy a lot of your time and from a lot of, now
again, I don't really recommend a reading test customer testimonials because I
just make them up alright I mean it's just obvious so I really don't put any
legitimacy in customer testimonials or those websites that are made from the
affiliates but I did really like a few of them I don't know if they're
legitimate or not but it just makes so much sense where people are complaining
that there are so many adjustments that Kirk Du Plessis recommends that you have
to log into your account four or five times and also your commissions start
adding up whether you have a small account there's no way that you can make
four or five adjustments to a position especially when you're trading a
straddle when you're only collecting I assume he's recommending that you
collect and you close out the position that 25% of the max profits right
because that's what tastytrade recommends and Kirk Du Plessis
essentially copies the research from tastytrade so there's no way that you're
gonna make money trading iron flies on ETFs where the premium that you receive
is already substantially reduced you're most likely going to get tested in this
bull market on the call side your commissions are going to end up eating
up all of your profits in the best case scenario you're closing out that
position at 25% maximum profit and additionally you're gonna have to log
into your account like five or six times a day because you're potentially scared
about that option or those options getting getting
test it and you're gonna have to make modifications so again Kirk du plessis
great podcast his videos are really well done shit they're a lot better than my
videos I just stand in front of my bedroom with a camera and then I just
are interested if your main goal is to make money you will not become a student
you should not become a student of Kirk duplessis and option alpha if your main
priority is to be entertained then yeah listen to his podcast buy his course etc
you know but if your main priority is to make money with this little stress in
his little time and using the absolute best strategy possible then you will not
subscribe and you should not subscribe to Kirk Du Plessis because he doesn't
have the best strategy I guarantee you he doesn't even make that much money
himself alright I don't think that he posts his full trading statements I
also don't think that he posts his sighs he's definitely not nearly as responsive
to his students as I am I mean I'm like completely OCD about providing and
exceeding everyone's expectations let me quickly see if there's anything
else that I wrote so I wrote about the eat he encourages you to trade ETFs
which leads to decrease premium tons of adjustments he encourages people to use
spreads which have very high commissions especially when you're when you're
adjusting it he doesn't post his size no trading statements and actually I wrote
here that I think he loses money I'm not sure if he loses money
I mean 2018 honestly I haven't had the best year 2017 I killed that I made like
72 percent but the fact is that whether I make fifty percent this year or thirty
percent this year in the long term I think it's just a matter of time before
you know I didn't worth like over a hundred million dollars so and I don't
even care about like the freaking money like you guys you guys saw actually how
I live like I don't have a car right I rent my apartment just because I like
being free when I left New York in 2016 I just discussed with my wife like hey I
want to move and she was like okay no problem and then we packed up the few
things that we had in a car and we moved I mean that's it like when you don't
have a lot of things it gives you freedom I can tell you that for all
those people who think that having a car or having a Lamborghini is gonna make
you like attractive to women and it's gonna validate you to society it's not
about that man just that Lia I worked as a nightclub
promoter and I can tell you that that life and I've been with a lot of women
when I was a nightclub promoter I can tell you that that's really hollow and
if you haven't experienced that lifestyle then and yet you're pursuing
it I can tell you that maybe you should go to like another country you know
where you can engage in that type of lifestyle and you're not going to feel
good about yourself when when when you have the things that you believe are
going to make you happy you have to really work on yourself so I guess what
I'm saying I know I'm kind of like getting off into a tangent but I
definitely don't think that Kirk Du Plessis even though the production
value on his videos is incredibly high I don't think that if you follow him
you're gonna make any money and this is David Jaffee from BestStockStrategy.com please
like comment share and subscribe I am definitely not a fan of optionalpha.com
I think that optionalpha.com is I would say like borderline fraudulent
borderline scammy and I don't think that any students who are subscribing to
optionalpha.com are going to make any money or at least students who have
under like 50 or a hundred thousand dollars and even if you do have over a
hundred thousand dollars you're definitely not maximizing your
profitability and decreasing your risk by selling straddles I mean it's just
not especially on ETFs I mean it just doesn't you know it just doesn't
work out that way alright so I'm gonna have any questions let me
know like I said please like comment share subscribe you can go to BestStockStrategy.com
BestStockStrategy.com and enter in your email address and receive over $400 dollars
worth of free training materials this is David Jaffee with BestStockStrategy.com and