James Altucher's get-rich-quick pitch

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mancich
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James Altucher's get-rich-quick pitch

Post by mancich » Wed Aug 30, 2017 3:10 pm

Ok, I like James Altucher's quirky writing, though I know he is trying to sell his products and books.
I am a Boglehead through and through and don't believe in get rich quick schemes, and would never buy any program from him or anyone else.
However, for my curiosity, watch this video and help me understand what he is trying to push here? He is deliberately being vague to try to get the viewer to buy.

https://pro.chooseyourselffinancial.com ... %7D&h=true

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Abe
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Re: James Altucher's get-rich-quick pitch

Post by Abe » Wed Aug 30, 2017 3:55 pm

Make $647 in less than 2 minutes with no risk. This "almost" sounds too good to be true. :happy
Slow and steady wins the race.

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Pajamas
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Re: James Altucher's get-rich-quick pitch

Post by Pajamas » Wed Aug 30, 2017 3:58 pm

Seems simple, selling puts, maybe some proprietary system for figuring out which ones to sell and when. Didn't seem vague to me at all after watching the video. He did make it seem like all you have to do is sell them and put the money in your wallet, though.

financeidiot
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Re: James Altucher's get-rich-quick pitch

Post by financeidiot » Wed Aug 30, 2017 4:10 pm

Damn that's a long video. Didn't make it to the end. You can pause, rewind, and fast forward with your arrow keys and spacebar though. So he's advertising options selling, of which, I know nothing. But it seems to me he's misrepresenting the cash received for the option as all profit. Would be curious to hear what more knowledgeable people think.

The product is a $3,000 per year subscription to a weekly options selling pick. Includes an HP Chromebook. He claims he's limited the subscription to 300 people ($900,000 per year).

Here's a couple notable quotes:
"Most options buyers lose the bet," hence you should be an options seller
"There might be a few times when you get asked to pick up the underlying shares..." This is the downside.
"The market could go down" he called this a black swan event.
“Get to keep 100% of the instant cash up front and at the outset of this transaction.”
"Could see trades go the other way once in awhile, less than once a year on average."

These are the articles he referenced:
Using Stock Options to Generate Income: http://www.barrons.com/articles/using-s ... 1478023117
5 careful ways to win with options: https://www.zacks.com/stock/news/179023 ... th-options

These are the 3 trades he advertised in the video. Took screenshots of the orders but don't know how to upload them:
AAPL, $647.01 cash
DIS, $322.02 cash
NKE, $700 cash

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Pajamas
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Re: James Altucher's get-rich-quick pitch

Post by Pajamas » Wed Aug 30, 2017 4:19 pm

financeidiot wrote:
Wed Aug 30, 2017 4:10 pm

The product is a $3,000 per year subscription to a weekly options selling pick. Includes an HP Chromebook. He claims he's limited the subscription to 300 people ($900,000 per year).
That's a better way to get rich quick!

cheapskate
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Re: James Altucher's get-rich-quick pitch

Post by cheapskate » Wed Aug 30, 2017 5:13 pm

Unless Altucher has some secret sauce that has eluded the stable of snake oil salesmen (also known as stock pickers), he can (at best) track the S&P 500 Put write index (www.cboe.com/PUT).

From 1986 (this index'es inception) to today, the S&P500 Put Write Index has tracked the S&P 500 EXACTLY (10.1% returns per annum). With a lot more tax inefficiency to boot. If someone is eager to try this out, there's an ETF (from WisdomTree).

Altucher, OTOH will make out quite nicely for himself.

552BB
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Re: James Altucher's get-rich-quick pitch

Post by 552BB » Wed Aug 30, 2017 6:32 pm

Hello guys and gals,


Pajamas wrote:
Wed Aug 30, 2017 4:19 pm
financeidiot wrote:
Wed Aug 30, 2017 4:10 pm

The product is a $3,000 per year subscription to a weekly options selling pick. Includes an HP Chromebook. He claims he's limited the subscription to 300 people ($900,000 per year).
That's a better way to get rich quick!
Actually there is an even better way to get rich quick!!!

He just finds out that his product is SOOOOOO GOOD that next year he just has to increase the number of limited subscriptions to 1000 (due to unbelievably high demand of course). :mrgreen:



Now, only question, where - o - where will he find 1000 suckers!!!!! :mrgreen: :annoyed :oops:



:D



:sharebeer

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arcticpineapplecorp.
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Re: James Altucher's get-rich-quick pitch

Post by arcticpineapplecorp. » Wed Aug 30, 2017 7:15 pm

Not sure I would trust my money to a guy who has made millions then lost everything...several times (see link below). Yes he seems to always make it back, but still...isn't part of money not just learning how to make it, but also learning how to keep it? In fact, it would seem to me that the "keeping" it part is the more important. If he had learned that, would he need to hawk his snake oil?

https://www.google.com/search?q=how+man ... 8&oe=utf-8

So it sounds like his get rich quick way is to get you to give your money to him. Think I'll pass on that one. He's a smart guy, but me not giving him my hard earned dollars makes me smarter.
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Jack FFR1846
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Re: James Altucher's get-rich-quick pitch

Post by Jack FFR1846 » Wed Aug 30, 2017 7:38 pm

So this process.........to get me filthy rich.........that's really easy.......wait.

If that's all true, why hasn't this clown simply upped the ante each time and owned the world.
Bogle: Smart Beta is stupid

selftalk
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Re: James Altucher's get-rich-quick pitch

Post by selftalk » Wed Aug 30, 2017 8:00 pm

What a nice charitable guy to want to make me money quickly and whenever I need extra money. A real prince of a guy. The world would be a far better place with more people like him in it.

John1960
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Re: James Altucher's get-rich-quick pitch

Post by John1960 » Wed Aug 30, 2017 9:23 pm

What he is not telling is that selling options is highly risky. You can easily do 100 good trades and then lose all you made one one trade.

JBTX
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Re: James Altucher's get-rich-quick pitch

Post by JBTX » Wed Aug 30, 2017 9:52 pm

John1960 wrote:
Wed Aug 30, 2017 9:23 pm
What he is not telling is that selling options is highly risky. You can easily do 100 good trades and then lose all you made one one trade.
This. Given the market goes up a lot more than it goes down, and I imagine the probability going down a substantial amount is slim, you can probably win a bet of selling a put (betting that security won't down by X given a particular time frame) and most of the time win that bet. Problem is when you lose that bet, you lose a lot.

Another form of effectively selling a put on a company's financial health is writing (selling) a credit default swap. I am sure most of you have heard those, via AIG and the 2007/2008 meltdown. If you buy a CDS, you get paid if a company defaults. If you sell a CDS, you get the money for the CDS. If the company default's you have to pay up. Typically CDS's are cents on the dollar, because the probability of it going in default is slim. But that is where AIG got into trouble. They had written (ie sold) CDS on investment banks. What are the odds an investment bank would fail....right? We all know how that turned out. AIG had to be bailed out. Some have likened writing CDS as picking up nickels in front of a steam roller.

Basically the same concept as selling a put. High probability of getting positive payout, low probability of paying out large payout.

mancich
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Re: James Altucher's get-rich-quick pitch

Post by mancich » Thu Aug 31, 2017 3:58 am

Thanks all. As I said, I would never fall for a pitch like this, I was just more curious on what he was actually selling. :sharebeer

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djpeteski
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Re: James Altucher's get-rich-quick pitch

Post by djpeteski » Thu Aug 31, 2017 7:57 am

Abe wrote:
Wed Aug 30, 2017 3:55 pm
Make $647 in less than 2 minutes with no risk. This "almost" sounds too good to be true. :happy
Hell I have done it...sort of. Never mind that it might take you a few hours to evaluate the different trades. Never mind that you have to wait for option expiration (30-45 days) for the "investment" to "mature". Never mind that you do 10-12 profitable trades in a row and then have one bad one that wipes out all your profits. Never mind that you might have been better off just buying and holding the stock.

Never mind that I made about $1600 yesterday, in my retirement accounts, and I did nothing.

So yea Abe, a lot of dishonesty by omission in the claim. :sharebeer

John1960
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Re: James Altucher's get-rich-quick pitch

Post by John1960 » Thu Sep 14, 2017 12:52 pm

Having sold covered calls in the past, I can say that the approach Altucher takes is a loser when used with real money. Another popular option service Schaffer has lost money most years according to reviewers. Then there are Najarian brothers on TV with an interesting approach.

You can keep it simple and buy an index etf like spy. The reason to do anything else is if you are ambitious and want higher returns.

If you want to use options, the only approach I have found that has made me money is the approach The Arora Report takes. Arora Report gives buy zones below the market that Arora report algorithms give 70% probability of a fill over 120 days. Arora report says to sell puts in the buy zone. This way you collect the premium from put selling and buy the stock at your price.

But do not try this just from reading this post. There are serious risks to put selling. You need to use their complete method to build in the safeguards.

I do not know of anyone else who has consistently made money with options. Alchuter provides no proof he is making money with his approach.

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Portfolio7
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Re: James Altucher's get-rich-quick pitch

Post by Portfolio7 » Thu Sep 14, 2017 3:26 pm

Altucher is a pretty smart guy, who's made and lost and made a lot of money. His ideas on money don't seem to fit the Boglehead mold very well. I find him entertaining, but take his thoughts with a grain of salt.

https://20somethingfinance.com/the-wors ... -altucher/
An investment in knowledge pays the best interest.

acanthurus
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Re: James Altucher's get-rich-quick pitch

Post by acanthurus » Thu Sep 14, 2017 8:28 pm

Removed
Last edited by acanthurus on Tue Oct 31, 2017 6:30 pm, edited 1 time in total.

ThrustVectoring
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Re: James Altucher's get-rich-quick pitch

Post by ThrustVectoring » Thu Sep 14, 2017 8:53 pm

John1960 wrote:
Thu Sep 14, 2017 12:52 pm
Having sold covered calls in the past, I can say that the approach Altucher takes is a loser when used with real money. Another popular option service Schaffer has lost money most years according to reviewers. Then there are Najarian brothers on TV with an interesting approach.

You can keep it simple and buy an index etf like spy. The reason to do anything else is if you are ambitious and want higher returns.

If you want to use options, the only approach I have found that has made me money is the approach The Arora Report takes. Arora Report gives buy zones below the market that Arora report algorithms give 70% probability of a fill over 120 days. Arora report says to sell puts in the buy zone. This way you collect the premium from put selling and buy the stock at your price.

But do not try this just from reading this post. There are serious risks to put selling. You need to use their complete method to build in the safeguards.

I do not know of anyone else who has consistently made money with options. Alchuter provides no proof he is making money with his approach.
That's how you get the most out of accurately valuing a stock. If you believe a stock is worth $X, and it's currently trading above that, write a put at $X. If the stock price falls below $X, you bought the stock at the fair market price of $X. If the stock price stays overvalued, you extract value out of it through the option premium.

Similarly, if you believe a stock is worth $X and it's currently under-valued, you should buy the stock and write a call at $X. You give up the right to be compensated for the stock above its value, sure, but you also get to pick up option premiums as long as it is undervalued.

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