Daniel Kertcher/Trading Pursuits - Serious or Scam?

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

I don't know how often AAPL has closed 6.7 % up in a week. Past performance is no guarantee for future performance. Last month AAPL would have had to rise 33.3 % to hit the strike price. Not very likely I would have thought.

On the few occasions I got stopped out, and I decided to buy back the call, I found the price very much lower than the price I got when I sold the call. Generally speaking, when the share price is well below the strike price and a lot of the time value has decayed, the price of the call option tends to be a fair bit lower. One also has the choice to buy back the stock at a much lower price. There is more than one way to skin a cat.

I happened to see the market close this morning and noticed that I have already achieved nearly two thirds of my expected profit which will materialise this Saturday morning.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

3660 on 270k is 1.35% return perweek/70%+ annualised. Pretty good return but the 7% range on weekly AAPL movement you will win only 60% of the time (from 1984 to 2012 data), most likely higher in this volatility environment. Even at 70-80% win, your losses are undefined, every dollar above the strike is about 2X your premium. Just a quick scan over past few months $10 overnight gaps are not uncommon. Your sold option can still be "in profit zone" out of the money at 475 on Thursday but on Friday it gaps $10 into 485, you will be needing dozens of weeks of premiums to cover one loss. Even at 80% win rate you have a negative expectancy. Your win this week does not make it a good trade. Trade long enough like that and you will get burnt.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Thanks carlk, that is good advice.

Most of my trades are covered calls using a GSL and therefore require little attention during the month. If I do get stopped out, depending how close it is to expiry, I have several choices: buy back the call at a much lower price or let it expire, or even buy back the stock at a much lower price. In more than three years of trading this has never been a problem.

Lately I have been dabbling a little in naked calls. But I only use them when the price is right. Like last month's $1.885 premium for a FEB $600 strike way-out-of-the money call. There was no way AAPL was getting anywhere near $600 in those three weeks. The closest it got was about $465.

If this week the price gets anywhere near $475, I'll be closing out the trade, even if it means I just break even. If we get to Saturday morning and AAPL stays below $480, I'll collect a nice profit.

BTW, all my other trades for this month which are covered calls are progressing nicely.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Alvin,
With the VIX being so low, are you trading with less capital exposed than normal?

Also as part of your risk management, I see you have multiple trades but do you also do covered puts? I noticed earlier in one of your posts you had a call and put on the same company, so atleast that guarantee's a winning trade but you dont want the losing position to make any wins insignificant.

When I was doing naked positions, I was prepared to turn them into a covered position if need be.
Im not sure id do well with the VIX being so low now but with a higher VIX I was finding lots of ways to sell options with relative safety.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Alvin Purple said:

Thanks carlk, that is good advice.

Most of my trades are covered calls using a GSL and therefore require little attention during the month. If I do get stopped out, depending how close it is to expiry, I have several choices: buy back the call at a much lower price or let it expire, or even buy back the stock at a much lower price. In more than three years of trading this has never been a problem.

Lately I have been dabbling a little in naked calls. But I only use them when the price is right. Like last month's $1.885 premium for a FEB $600 strike way-out-of-the money call. There was no way AAPL was getting anywhere near $600 in those three weeks. The closest it got was about $465.

If this week the price gets anywhere near $475, I'll be closing out the trade, even if it means I just break even. If we get to Saturday morning and AAPL stays below $480, I'll collect a nice profit.

BTW, all my other trades for this month which are covered calls are progressing nicely.

Click to expand...

Care to give an example of using the GSL?

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

zac: No, I use roughly the same percentage of my capital every month, irrespective of the value of the VIX. I may use less capital per trade but I may have more trades.

I don't use covered puts at the moment, but I may do so in the future.

When I had both a naked call and a naked put on the same company, I did that after deciding that the maximum swing in the time remaining to expiry would be + or - 14 %. Therefore I chose a call strike 14 % above and a put strike 14 % below the market price as the premiums were still quite attractive. By expiry the price had actually dropped 13 %, so both trades were profitable.

skyQuake: Here is an example of the use of the GSL:

The stock has been rising slowly for several weeks and is now at $40.00. The long term support is at $38.00 and the premium for the $38 strike call option is $4.00. You buy the stock at $40.00 using CFDs and sell the $38 strike in-the-money call option for $4.00. Allow $1.30 for expenses (brokerage, interest, GSL fee). Set the GSL at $37.75.

Now you are in a fairly safe position. If the price stays above $38.00 till expiry, you will get exercised but make an overall profit. If the price drops to $38.00 you will not get exercised, you keep the premium minus expenses and you keep your shares on which you can sell more call options the following month and you can use the GSL again without additional cost. If the price drops to $37.75 or below, your broker will sell your shares at $37.75, you keep the premium minus expenses, but your call is now a naked call and you have to decide whether you want to buy it back (at a much lower price than you got for it) or let the option expire worthless. This decision depends on how far below $37.75 the price has dropped and how much time is left to expiry. If the price has dropped a lot, you may even consider buying back the shares at a much lower price.

On the occasions I have been stopped out I have always broken even or ended up with a small profit.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

My reply is directed to Samuel, Garpal Gumnut, Vixs and, of course, wayneL.

Samuel: I have no knowledge of Daniel's involvement in any of the funds you mentioned and can therefore not comment on it.

You are probably a bit presumptuous to think that Daniel actually comes to this forum and reads it. I suggest if you want him to discuss these issues you write to him directly.

Garpal Gumnut: I am not a lawyer either, nor am I Daniel Kertcher or his employee.

I met Daniel in 2009, did his course, used the knowledge I gained to trade covered calls and found that a regular monthly income can be made, provided one follows the rules, especially those on capital protection and preservation.

Daniel doesn't want his students to just blindly follow his recommendations, although the trades mentioned in his monthly report often turn out to be very profitable. He encourages his students to go and find their own trades. That is how I found that incredible AAPL trade in January, a way-out-of-the-money $600 strike February Call Option with a $1.885 premium. If I had not done his course, I would never have found it.

I am not here to defend Daniel. If he has done the wrong thing, he should certainly be prosecuted.

However, many posters here seem to imply that ASIC are not doing their job. I can speak from personal experiences and can state that ASIC take their job very seriously.

In the 1990s I was enticed to invest $1,000 with a company (Lateral Trading) that promised annual returns in excess of 20 % by trading in options. Briefly, something went wrong. ASIC stepped in and closed the business down and prosecuted the directors who were found guilty in court and received lengthy jail sentences. Two years later, when the liquidators had finished their work, I received $400 back.

In the late 1990s I was offered to invest in a scheme involving Wagyu beef cattle. The promised returns appeared to be too good to be true. So I enquired about the scheme at ASIC who immediately investigated, found the scheme to be a scam and promptly prosecuted the promoter who was sentenced and sent to prison.

My point is: If so many people lost so much money in schemes with which Daniel was associated, did nobody ever complain to ASIC about it? It is very easy to lodge a complaint with ASIC as Gumnut's link shows.

When so many people and so much money is involved, wouldn't you think that ASIC would know about it and take some action?

To my knowledge Daniel's license has never been withdrawn and as far as I can ascertain he operates within the law and has never been prosecuted.

Vixs: Your point is valid. Unfortunately, there are millions of people in Australia who have no say in how their superannuation moneys are invested. Over the last five years many superannuation funds had very low returns, some of them even negative. And the people whose money they invest, and sometimes lose, have no say.

I am fortunate that I have my own SMSF and totally control my investments.

wayneL: Of course, truth comes out in the end.

But it will not come out in this forum. The only way we can find out the truth is when a responsible authority, such as ASIC, conducts a full investigation.

Have a nice long weekend, you all.

Let's celebrate Moomba, get together and have FUN!

Alvin Purple

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Just FYI Daniel... errr, Alvin.... whoever:

DK is a member of this forum, possibly under one or more nom de plumes, but certainly under his own name, and has responded to a few points.

The thing is, Samuels post has the ring of truth about it, as it mirrors the experiences of other leveraged CC funds/strategies.... plucking pennies in front of a steamroller before eventually getting squashed.

The owner of this forum is an impartial honest "broker" (in the metaphorical sense). He will never betray any confidence... ever, not even to us mods. SO if you want to prove your purported record of never ever a losing trade, I suggest that you can do so by scanning your broker statements and sending to Joe.

I stress that he is scrupulous in such matters.

If it is true, you have an opportunity to shut us all up.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Re the fund Samuel is talking about. Im not sure if its this forum site or another, DK has actually made comment on it.
Im sure it can be found given a search.
From memory the fund was handed over to other principle managers.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Why am I not surprised?

wayneL, I have searched the ASIC website for any signs that Daniel Kertcher was ever prosecuted or banned. There is no sign of it.

As you know, ASIC has a comprehensive list of scams, prosecutions and banned persons and companies. Daniel is not on this list.

This may not be good enough for you, but it is good enough for me.

You are still barking on about proof? Didn't I just show you my last two trades from the time they were put on until their successful conclusion?

The dogs keep barking but the caravan moves on .....

I was also accused of not posting my results on a monthly basis. Well, next weekend is expiry weekend and I am happy to let you all know how this month went. With only 5 days to go till expiry I can tell you now that all trades are currently in profit and, barring an absolute disaster, should remain profitable until expiry.

I am fortunate that I did not find this forum until January this year. Had I come across it say, three years ago, all that negativity may have persuaded me not to go ahead with trading and I would have missed out on three years of good profits. By the time I became aware of this forum it would have taken a lot more than the rantings of the Naysayers to stop me from trading.

Now I must get back to my Moomba celebrations.

Have a nice couple of days.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Alvin Purple said:

The stock has been rising slowly for several weeks and is now at $40.00. The long term support is at $38.00 and the premium for the $38 strike call option is $4.00. You buy the stock at $40.00 using CFDs and sell the $38 strike in-the-money call option for $4.00. Allow $1.30 for expenses (brokerage, interest, GSL fee). Set the GSL at $37.75.

Now you are in a fairly safe position. If the price stays above $38.00 till expiry, you will get exercised but make an overall profit. If the price drops to $38.00 you will not get exercised, you keep the premium minus expenses and you keep your shares on which you can sell more call options the following month and you can use the GSL again without additional cost. If the price drops to $37.75 or below, your broker will sell your shares at $37.75, you keep the premium minus expenses, but your call is now a naked call and you have to decide whether you want to buy it back (at a much lower price than you got for it) or let the option expire worthless. This decision depends on how far below $37.75 the price has dropped and how much time is left to expiry. If the price has dropped a lot, you may even consider buying back the shares at a much lower price.

On the occasions I have been stopped out I have always broken even or ended up with a small profit.

Click to expand...

Hi Alvin, thnx for the GSL example but I have a few more questions.

Firstly is this US or AUS? I'd assume US from the Apple example earlier.

I get the payoffs for the stock, but I don't really see the point of a GSL. It seems to me all it'll do is erode profit. Yes I know the stock can gap down, but it seems a regular stop would do the same job without eating at gains.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

skyQuake said:

Hi Alvin, thnx for the GSL example but I have a few more questions.

Firstly is this US or AUS? I'd assume US from the Apple example earlier.

I get the payoffs for the stock, but I don't really see the point of a GSL. It seems to me all it'll do is erode profit. Yes I know the stock can gap down, but it seems a regular stop would do the same job without eating at gains.

Click to expand...

Hi Quake,
A GSL costs 0.3% (or 3% of your overall return on that trade) and yeah youre right its really just protection from gapping. If your break even point is well clear from the price action you wouldnt think gapping is too much of an issue.
The other thing is but im reluctant to mention it because of arguments the option purists might engage lol.
say for example you buy AAPL with a GSL, you can trade it monthly by rewriting fresh options and therefore the GSL fee becomes redundant as its a once off fee.

They are traded in US, due to liquidity I beleive and the amount of options, also if holding a leveraged position its charged at US interest rates (0.25%) and not (3.0%) as per Australia.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Alvin.
I did not ask for proof of two trades. You claim to have never made a loss in 3 or whatever years. That is what I'm asking proof of.... otm synthetic puts WILL be profitable some percentage greater than 50% of the time. Its the occasional losses that determine profitability over the long term.

These is the point you keep ducking and bobbing over. You just dont have the cajones to stump up and back up your claims.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Zac the one year trader speaks perjoratively of "option purists". LOL that is funny!

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

wayneL said:

Zac the one year trader speaks perjoratively of "option purists". LOL that is funny!

Click to expand...

Haha lol, I see your point but I wasnt disapproving of them at all.
Just meaning to say, theres a counter argument to it that I didnt want to raz up.

I guess your one year assumption is based on my start date here.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

skyQuake: Actually zac has already answered those questions and I can only agree with his answers.

Yes, the GSL is an initial cost and some people may consider it unnecessary. However, when the stock doesn't gap down and you don't get exercised and therefore keep your shares, you can write fresh call options on those shares the following month and since the GSL has not been triggered you can use it again at no additional costs. This scenario can continue for several months which spreads the original cost of the GSL over a much wider base.

I may have mentioned before that it is important to follow the rules. That is why I continue to use a GSL. On at least two occasions that I can remember, namely in August and October 2011 the markets crashed and several stocks gapped down big time over the weekend. My GSLs came in very handy since they prevented me from suffering disastrous losses.

I know some traders who did not believe in a GSL, they thought they were unnecessary and too expensive. However, when their stocks gapped down by a wide margin they received the scourge of traders: The much dreaded MARGIN CALL from their broker. Since they did not have sufficient funds to meet those MARGIN CALLS, their brokers did what brokers do: They closed out their positions when their stocks were way down, causing them tremendous losses (remember they were leveraged 10:1 or even 20:1), which in some cases blew up their accounts.

I regard the cost of the GSL as simply a cost of doing business, but more importantly, it lets me sleep well at night. For it is at our nighttime when all the action happens on the US market. I prefer to wake up refreshed in the morning and casually observe the closing minutes of the market without being overly concerned what happened in the previous 6 hours.

wayneL: You appear to be a bit thicker than the average bear. You keep harping on about "synthetic puts" when I made it quite clear that I am talking about COVERED CALL OPTIONS. Get that into your little pointed head: COVERED CALL OPTIONS.

By the way, I never claimed never to have had a losing trade. I stated quite clearly that I have never had a losing month.

And one more thing: This thread is not about me, it is about "Daniel Kertcher - Serious or Scam?"

There appears to have taken place a major thread drift. Let me remind you again: This thread is about Daniel Kertcher. I have yet to see any convincing evidence, on the ASIC website or anywhere else, that proves beyond a reasonable doubt that Daniel Kertcher is a SCAM.

In the absence of such evidence - and you guys had more than three years to find and post it - I must conclude that Daniel Kertcher is not a SCAM.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Thanks Alvin once again for highlighting your woefully inadequate knowledge of options BASICS.

As discussed on this forum dozens of times and even pointed put to you on at least three previous occasions, a covered call IS a synthetic short put.

Thats just a basic option fact.

So with regards to your obnoxious ad hom, you have been hoist by your own petard. Congratulations, you've shot yourself in the foot.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Re the GSLs, I suppose thats fair enough. I understand you can keep "rolling" the stop around if it doesnt get hit so you dont need to pay the prem every month.

It does remove some risk from the covered calls, but some of your trades aren't hedged with GSLs, eg. your Apple trade in the US. Is this still part of the recommended trades?

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Yes, you are right, wayneL, indeed I have shot myself in the foot and it really hurts. It hurts so much that I am crying ....... crying all the way to the bank.

skyQuake, that particular AAPL trade was not a recommended trade from Daniel. But his teachings taught me to look out for such trades.

So even I, with my very inadequate knowledge of options, and being totally ignorant as to any option theories, being unconsciously incompetent and obviously a total idiot, could see that a premium of $1.885 for a way-out-of-the-money $600 strike call option with three weeks to run to expiry when the price action was around $460 and going down, was a bargain that did not need any hedging whatsoever. When the options expired worthless on February 16 I was able to calculate on my trusted abacus that the 60 contracts yielded me a net profit after brokerage of $11010. This was an extraordinary profit and roughly doubled my profit for the month.

Just imagine how much money I could have made if I really understood options like, for instance wayneL does. His theoretical knowledge of options theory must be encyclopaedical. I can only guess how much money he must be making every month.

Re: Daniel Kertcher/Platinum Pursuits - Serious or Scam?

Oh yeah! Anyone cam claim anything on the internet, amonymously.

For credibility I have explained the avenues for you to prove it. But alas, yoi keep dodging that.