Steven Sarnoff Claims Unfair, But A Good Start

Review...

I've been an Options Hotline (called OHL hereafter) subscriber since the fall of 2003. It's *very* true that the promotional claims are misleading. In fact, I had a long correspondence with the publisher (at the time, I think it was Greg Grillot) that it was very unfair to claim returns which are calculated from the recommended entry to the maximum price at which an option ever traded, knowing full well that the only way a subscriber could achieve those gains would be that he/she is psychic.

The publication tells you when to enter, but never when to exit. I believe it's partially a result of those emails that OHL now includes Sarnoff's read on support and resistance, as well as hints as to when both conservative traders should take profits, and aggressive traders should target.

*If* you pay attention to these hints, it will help you figure out when to get out of a trade. Don't ever believe that you can do as well as the promotions imply. But if you are pretty new to options, and you learn how to manage your trades, you'll find that Steven Sarnoff is a decent picker.

Be aware that in the current whipsaw market (spring of 2008), simply buying puts and calls and holding with little supervision is unlikely to produce good returns. A good friend is now day trading her options, using tight stop losses, and taking smaller gains than usual. You must be nimble or lucky to profit with this type of volatility when trading straight simple puts or calls.

Other options strategies may work better in the current environment. Don't blame Sarnoff for that limitation, as he *only* recommends simply buying a particular put or call.

I do prefer Jeff Clark's S&A Short Report, from Stansberry Research. Clark goes into much more detail than Sarnoff, and he also always alerts you to exit. Although he sometimes uses simple puts and calls, he also does more sophisticated strategies, and demonstrates his logic with charts.

If you want something quick, take Sarnoff's OHL. He is better than many. But, if you prefer to learn in the process, take Clark's Short Report instead.