Ghost Education (Part 6)

In the last installment I defined “ghost education:” an article that purports to provide instruction but actually provides nothing actionable at all. Both the Lane and Option Alpha articles are ghost education. Did you see the contradiction between the two?

The Option Alpha article concludes:

> We have found that the most consistent strategy
> is to SELL the options that are far out of the
> money and keep the premium as they expire
> worthless.

Lane’s article concludes:

> When these events can’t discount the volume, it
> may signal that investors have reasons to be
> optimistic about the options and could be a buying
> opportunity.

First, the Option Alpha article implies we must determine why the options are being traded in order to make money off the opportunity. Although that is impossible to do, Lane suggests we have an opportunity when we can’t determine a reason. These are contradictory.

Second, the Options Alpha article suggests selling high-volume options. Even though that fails because the options have zero bid, Lane suggests buying the options. Again, these are contradictory.

To recap, what we have here is ghost education by Terry Lane that is based on ghost education by Option Alpha. Terry Lane’s article is ghost education because he purports to tell us how to profit and he never does. He seems to be basing his approach on the Option Alpha article but he gets it backwards.

This is optionScam.com, folks.

I will make one further observation in the next post.