This is rather long. If you wish not to read through it, here's the main point: It's not that they're telling lies. Rather, it's just that certain critical information have been (deliberately?) omitted in their advertisements and promises
First, the good part:
1) The seminars and course materials offered by Optionetics are not bad.in fact, most stock market speculators could probably benefit from them. The information is presented in an easy-to-understand manner, and does deliver on their promise of "trading with controlled risk". Kudos for bringing this quality information to the public.
2) They do honor their refund if you complete the 36 trades in the 6 month period as required. However, please read on for more on this point.
Here comes the bad part:
1) The 36 "trades" required to get the refund - According to their definition, a "trade" is not used in the conventional sense as we know it (buying OR selling an option). It's the buying AND selling altogether. As you can read from the previous complaints, many people were unpleasantly surprised when they learned this.
Their website clarifies this in the guarantee details. But maybe they can make this clearer to the audience at the free "info" seminars.
2) The wonderful testimonials - OK, maybe everything in the testimonials is true (200% return in one month, blah blah blah). But if one reads critically, the following questions should arise:
A) In what period did these gains occur? For instance, in the 1999 period, practically everybody was making that kind of return, without any assistance from a $3000 course.
B) What about the long term records? In other words, what are the average returns using the system? It's highly unlikely that anyone can sustain 300% returns in 6 months (or whatever) for any period longer than a year. Think about it: Even the best investor in history, Warren Buffett, achieved a career average of "only" 24% compounded annually. Can anyone expect these outrageous (100%) returns on a regular basis? This question obviously answers itself.
One might argue that this system uses options to get more leverage, and thus the higher returns. If so, shouldn't pros like Buffett use this all the more, and thus be able to achieve higher returns?
C) How much money is needed, in order to earn the 3 times tuition ($9000) within 6 months? Optionetics says that one can start with very little ($50). But do the math, $50 to $9000 in 6 months equals a 18000% return, or 36000% annualized. Note that commissions or taxes have already been omitted. If we assume a 50% annual return, this still requires an initial investment of ($9000 * 2) / 150% = $12000. This is far from starting with very little.
D) What tools are needed in order to work the system? The expensive software programs used by the instructors in the course are NOT included in the course tuition. It'd be hell if one is to search for the trades manually. However, this is not mentioned in the "info" session.
It would be good if Optionetics would clarify the above points in their advertisements. As mentioned earlier, they are not lying, but misleading. Potential customers would do well if they examine the claims critically and not let their greed cloud their judgement.
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