John H.
Posted
Highly risky, weak risk management
The core strategy is selling naked options on a handful of highly volatile commodities, mainly crude oil, gold and silver. Small wins are fairly common, until they’re completely wiped out by the inevitable blow-ups. It’s the essence of picking up pennies in front of a steamroller. In April, many members took massive losses that could take months to recover from, and that’s only if everything goes smoothly from here. These aren’t black swan events - every few months, there’s a sharp move, and months of small profits are wiped out, and then some. When trades go against you, the go-to “solution” is to roll further out, locking in losses while doubling down on risk. Over time, the average days to expiration of trades have gotten longer (90 days plus), which increases exposure and reduces the benefit of theta decay. During periods of high volatility, bid-ask spreads go through the roof, and margin requirements can spike 50% or more, compounding the damage. There’s little focus on understanding or managing the systemic risk inherent in these commodities. Since most of them trade overnight during the week, you can wake up to a screen full of red with no good exit options. The course fee isn’t worth it. Whatever the price is now, you'd be better off using that capital to trade small and learn by doing. The polished marketing doesn’t reflect the real risk you’re signing up for.
Response from Short Option Success· Jun 9, 2025
Thank you for sharing your perspective, though I respectfully disagree with several key points in your assessment. First, our strategy is not "naked options" - we employ specific risk management techniques and position sizing that this review doesn't acknowledge. While commodity option selling does involve inherent risks (as does any investment strategy), characterizing our approach as having "weak risk management" misrepresents the systematic safeguards we teach. Regarding the April situation mentioned - market volatility affects all trading strategies, and experienced traders understand that drawdowns are part of any long-term approach. What matters is the overall track record, which spans nearly 20 years of consistent performance through multiple market cycles. The claim about "rolling further out" as our primary solution oversimplifies our actual adjustment protocols. Our members learn multiple management techniques, not just one approach. Most importantly, our member satisfaction speaks for itself. The overwhelming majority of our community remains actively engaged and reports positive experiences with both the strategy and the coaching. Many have shared testimonials about achieving their financial goals using these methods. It's worth noting that criticizing a coaching program simply because you don't personally favor the underlying strategy isn't entirely fair. A program's value should be measured by the quality of education, support, and member outcomes - areas where we consistently receive positive feedback. Every investment approach has risks, and commodity option selling isn't suitable for everyone. We're transparent about this from the beginning. However, for those who understand and accept these risks, our systematic approach has proven effective over nearly two decades. We respect that this strategy wasn't the right fit for you and wish you success with whatever approach better aligns with your risk tolerance and investment philosophy.