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----- Original Message -----
From: "jdo1" <jdo1@xxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Monday, July 16, 2001 10:16 AM
Subject: [RT] Time Leverage Capital
> I received a phone call from TLC (Time Leveraged Capital) out of
> Florida. They were pressing the advantages of spreads, stating that their
> current favorite is wheat and the accompanying spread. They charge $55
round
> turn for options.
> Anyone on this forum have any experience with these people?
>
> Many thanks,
>
> John O.
I know nothing about this this firm. You may want to check the NFA website
for previous problems. However, $55 r.t. is fairly high and they are pushing
spreads which means by definition they want you to trade at least two
options per unit. That means you will be generating at least $110 per unit
per round trip. Spreads usually
offer lower volatility in exchange for less profit or limited time. Having
to incurr $110 or more r.t. seems like a severe handicap especially when you
consider that you will be competing against floor traders only paying about
$4 to do the same spread. If you want to do spreads, learn to do the
analysis yourself and then get your transaction costs down to a bare
minimum, i.e. no more than $20 per r.t. per spread. Doing that, you are
already $90 per spread ahead.
Or, you could just buy some Soybean futures on a pullback and go on
vacation.<G>
Cheers,
Norman
>
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