Don’t Believe the Hype! (Part 2)

Today I conclude with a few more posts from GB, one other post to GB, and my ultimate response after I had seen enough.

On April 13, 2015, GB wrote:

     > NLNK is my next possible trade this week. I
     > believe the $430 Call will provide over $33.00+ (my
     > goal is $1.00 profit per share per week) so this is
     > a triple grand slam with insurance. I can
     > only afford 2 contracts but will still make more
     > than my weekly profit goal. Thx. [italics mine]

In another post, GB wrote:

     > Hello… I’m not too familiar with the different
     > names like collars, spreads, etc. But my goal is to
     > create a near zero Delta, hence zero risk. I’m
     > thinking that it limits my upside but protects my
     > downside because the Put is already ATM or ITM,
     > again, a higher quality Delta… [italics mine]

Here was an insightful post by another member in response to one of GB’s posts:

     > …your suggestion to add long puts to a covered
     > call makes little sense. You are creating what is
     > known as conversion. Long stock + short call + long
     > puts. It is a flat position, which can only be used
     > to lock in profit/loss. If I understood your trade
     > you are adding puts after the stock has moved against
     > you. Hence you are locking in a loss. IV variations
     > might diminish your loss or even create a very small
     > profit but again conversion is a lock.

To that, GB responded:

     > Sound [sic] like profit to me all day long and all
     > the way to the bank!!

After some hearty laughs, I felt compelled to offer GB one response to all his posts:

     > If there’s potential reward then there is no such
     > thing as zero risk.
     >
     > If you don’t know the different names then learn
     > them. Ignorance is no excuse for being oblivious
     > to risk. Don’t put on any trades unless you fully
     > understand what your exposure truly is.
     >
     > Your posts have been entertaining with phrases like:
     >
     > –consistent weekly profits
     > –‘gravy’ forever into the next generation
     > –the coast is clear to keep it and make premiums
     >    until it is ran up again
     > –those who stayed are rich and retiring out this
     >    year and next
     > –sound [sic] like profit to me all day long and
     >    all the way to the bank
     > –so this is a triple grand slam with insurance
     >
     > Where’s the one about trading being an ATM machine?
     >
     > Nothing about trading or investing is free, nothing
     > is guaranteed, and nothing here is ever worth the
     > kind of exuberance you seem to project with your
     > posts. There’s risk inherent with everything and
     > if you trade too large aiming to be too greedy then
     > you will one day learn the hard way by getting blown
     > out of the game for good.
     >
     > Just my two cents: be careful and watch your back!

I feel that pretty much said it all.