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Hell, stay away... Below is a thread of info on Bernie Schaffer's
organizations and the Options Advisor. I put this together from individual
posts on RT in the past to use when I complained about one of Bernie's
advertisements that ran in TheStreet.com daily email newsletter.
JW
abprosys@xxxxxxx <mailto:abprosys@xxxxxxx>
>>The OPTION ADVISOR - FREE 30-day trial offer
Start profiting from Bernard Schaeffer's
time-tested, controlled-risk options strategies.
Get aggressive Put-Selling and LEAPS trading portfolios.
http://www.investools.com/cgi-bin/offer1/OPTI/STREET-optitext<<
I was saddened and disheartened to see the above lead-off ad in toady's
email report. I realize that you cannot and should not act as a censor but
I hope TheStreet would strive for a higher set of standards. Bernie
Schaeffer's Option Advisor organization is a scourge on the industry.
His organization (Investment Research Institute) is a high-stakes and
high-pressure game. I would hate to see anyone drawn into his web, for
there is a very high probability that they will lose money, perhaps a great
deal. I lost $3000 subscribing to a number of his services plus a larger
amount of money trading his recommendations. Yes, I do accept
responsibility for what happened, but I did do my research and thought (like
others in search of the mythical guru), that I was onto something. Little
did I realize at the time that I was just one of many suckers. I was
impressed and seduced by the materials and statistics that were sent to me
for the service I signed up for. However, in retrospect, they appear to
have been false. No matter which service of his I tried or switched into, I
always seemed to miss the gains. I was always told that they had huge gains
2-6 months ago and would surely come back. I was also enticed by the fact
that he has agreements with certain brokerages that will auto trade the
recommendations for you (which is attractive when you are working and don't
have time to monitor the fax machine for an incoming recommendation).
Essentially, his recommendations for each of the many services he runs are
faxed to the brokerage. You tell them which service you are subscribed to.
When a trade comes in, you are put into that trade within the limits that
you have specified in terms of $$ or # of options.
I have come to learn and accept that there really are no guru's and that
there is no substitute for doing your own work. But there are many others
out there who are new readers to TheStreet that have not learned this
lesson. Getting drawn into the IRI services will likely teach them a lesson
at the expense of some hard-earned cash.
Below is an email thread where some of his services were discussed:
_______________________________________
(this was posted by me in response to a query from someone)
Bernie employs many "analysts" who do the day-to-day grunt work. But as
head of the organization, he has to be ultimately responsible for what goes
on below him.
The Option Advisor newsletter (recently offered at $99 for 2 years) is only
one small part of the organization which is called Investment Research
Institute. There are literally hundreds of option services offered
typically ranging in price between about 1-3k. Most are touted as having
some sort of limit of 100, 200 or 250 maximum subscribers. The services
have catchy names like All-American, OEX Express, Swift Trade, All-Star,
etc. and you generally get 2 option recommendations via fax per month for
one year and most of the services tout each recommendation as shooting for a
300% gain in 1-4 weeks. But if there are say 50 distinct services at any
point in time with say 200 subscribers each and each offering 2
recommendations per month, then he has to be generating 20,000!!!
recommendations per month!!!!!! And all purport to return 300% <g>.
Furthermore, unless you tell them to back off, you will get faxes and calls
all the time advertising a new service that they want you to buy into.
Having gotten sucked into giving them 3k last year for 2 separate services
and having switched among the 4 services mentioned above, I can tell you
that I have not encountered even one recommendation that made it to 300%.
Most were closed out at a loss. When he did get a winner, he would
typically close it out at 40-80%. And when he does get a winner, it always
seems to be closed out too early (Hey, we got one that went positive.
Quick, close it before it goes negative <g>). Now a consistent 40-80% in
risky option trading might be considered acceptable - but remember you have
paid $1-3k for each service up front. However, the big problem is that
there are too many losers and your losses do not get offset by the winners.
I was pretty pissed off last year and tried to get in contact with Bernie to
express my dissatisfaction. I moved up the management chain a bit but could
not get in contact with him or anyone else with an executive title. I was
flat out told that I would NEVER be able to get in contact with Bernie. He
does not speak with subscribers. So I gave up on that approach and let the
services expire.
JW
abprosys@xxxxxxx
----------
> From: Proeber, Tim <TProeber@xxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: RE: THE OPTION ADVISOR
> Date: Monday, January 19, 1998 6:41 AM
>
> Bernie's book seems good, I've read most of it. I've heard that Bernie
> does very few of the recommendations himself -- maybe that's the
> problem.
>
> Tim
>
>
> > -----Original Message-----
> > From: Tom Bucklin [SMTP:b1bbuckster@xxxxxxxxxxxxx]
> > Sent: Sunday, January 18, 1998 11:06 PM
> > To: RealTraders Discussion Group
> > Subject: Re: THE OPTION ADVISOR
> >
> > I too get these "book" ads at least once a month. After reading these
> > posts, don't think I'll waste my time, and money, on such a poor
> > perfomer!!
> >
> > TB
> >
> > -----Original Message-----
> > From: Stan Rubenstein <stansan@xxxxxxx>
> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > Date: Sunday, January 18, 1998 10:54 PM
> > Subject: Re: THE OPTION ADVISOR
> >
> >
> > >To: R. Ross and all RTers
> > >By coincidence THE OPTION ADVISOR was reported, by today's Gannett
> > >Newspapers Sunday edition (Reporter Dispatch in Westchester county
> > north of
> > >New York city) to fall into the bottom ranks of Newsletters as rated
> > by the
> > >
> > >Hulbert Financial Digest. According to the columnist, Susan Antilla,
> > the
> > >five worst list shows B. Schaeffer, editor of THE OPTION ADVISOR, to
> > have
> > >achieved a negative 8.9% annualized return for the five year period
> > and
> > >a negative 8.2 % over the 10 year period ending November 30.
> > >
> > >B.Schaeffer, editor of THE OPTION ADVISOR, is reported to have
> > objected
> > >to his poor rankings by HFD on the grounds that HFD subtracts a
> > commission
> > >charge of 3% which if it were less his performance would be better.
> > >
> > >FYI,
> > >Stan Rubenstein
> > >----------
> > >> From: Steve Schnake <schnake1@xxxxxxxxxxxx>
> > >> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > >> Subject: Re: THE OPTION ADVISOR
> > >> Date: Sunday, January 18, 1998 9:27 AM
> > >>
> > >> I agree. I gave them a good, long(9 mos, -$15,000) chance.
> > >>
> > >> Steve
> > >>
> > >> ----------
> > >> > From: JW <abprosys@xxxxxxx>
> > >> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > >> > Subject: Re: THE OPTION ADVISOR
> > >> > Date: Saturday, January 17, 1998 6:16 PM
> > >> >
> > >> > Nope. Stay away.
> > >> >
> > >> > JW
> > >> > abprosys@xxxxxxx
> > >> >
> > >> > ----------
> > >> > > From: RRoss69319 <RRoss69319@xxxxxxx>
> > >> > > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> > >> > > Subject: THE OPTION ADVISOR
> > >> > > Date: Saturday, January 17, 1998 5:27 AM
> > >> > >
> > >> > > I KEEP GETTING SOLICITATIONS FROM THIS ADVISOR. IS BERNARD
SCHAEFFER
> > >> > > AND THE OPTION ADVISOR AS GOOD AS THEY CLAIM?
> >
> >
> >
-----Original Message-----
From: owner-realtraders@xxxxxxxxxxxxxx
[mailto:owner-realtraders@xxxxxxxxxxxxxx]On Behalf Of Bando57@xxxxxxx
Sent: Tuesday, October 27, 1998 4:28 AM
To: RealTraders Discussion Group
Subject: OPTIONS ADVISOR
Hello
I know this thread has been out there before but I wanted to check
again..what's the opinion of Bernie Schaeffer and his Option Advisor and Top
Gun methods?...
Is he just another carpetbagger?...has anyone had success with his
methods..?
Reason I'm asking is curiousity. He certainly wants my money...I have been
inundated with his mailings the past two weeks...I have received three of
em...
Is this a message from heaven or hell?
rick
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