Quality of Education
Quality of Alerts
Quality of Support
Ease of Use
Today I wanted to have a look at Alan Sama and his Option Genius advisory website. Option Genius clams to make big returns, upward of 100% per year by mainly trading selling iron condors and layup spreads, but does this investment site stack up or is this just another site making big claims and failing to deliver on the goods?
Options Genius was founded by Allan Sama in 2006, who lets members see Sama’s actual option trades and adjustments through real-time updates. Members of the service can follow along and watch or trade the live trades themselves. They can even have their brokers auto trade for them: this is where the broker places Option Genius trades for them.
At the heart of Option Genius is the story of a man who initially lost a small fortune in the markets, learned and did well in a new style of trading, and decided to help others get ahead.
When Sama began trading stocks, he did everything the experts advised. Within a year, he had reduced his savings from $83,000 to $34,000. Discouraged, Sama decided he would not make another trade until he figured out what he had been doing wrong and what he had done right. He noticed trading options was the only technique that had consistently earned him money.
Sama threw himself into learning all he could about options trading. Countless books and seminars and hundreds of hours later, he was an expert with his own trading plan. He back-tested his plan back to the mid-’90s, and it consistently made money. Using his new technique, he began trading again — and began making serious profits. He decided to let other people see exactly what he was doing as he was doing it, and Option Genius was born.
Option Genius uses trades that have over a 70%+ probability of success to generate double-digit monthly returns with limited risk. Sama carefully selects each trade and makes adjustments when needed. And he uses his own money to make the trades right along with his members. But will users get the results they seek or is Option Genius just another site filled with empty promises?
There are three different membership options when joining Option Genius, two monthly options, and one weekly trading system. All are fairly affordable with the most expensive being only $97 per month.
We like the fact that it is affordable, but do you get what you pay for or is there a lot of value there?
One of the best things about Option Genius is that you can set up auto trading. This means you can have a trade notification sent out by Option Genius and have it sent to your investment bank automatically for execution. But unfortunately, this can be an expensive learning lesson!
There are several reports of people not getting anywhere near the return on investment that is claimed on the Option Genius website. Auto trade fees can run very high, one report is that a customer was charged $600 by Interactive Brokers just because of Option Geniuses trade recommendations. However, the broker rejected these auto trades as the risk was too high. Even though they were rejected the user still had to pay. See pissed customer review here
For this reason, we recommend you always make your own trades.
Even if an advisor has a great track record, you always want to review their research for yourself and confirm the trade is right for you. Sometimes you may not agree with the research, so it’s always best to review it and confirm the logic and that you want to execute the trade.
Unfortunately, Option Genius posts no research, they just post a trade and expect their members to do it… What? How does anyone know how much time and effort went into the trade if all they do is post the trade itself. Without supporting documentation this could be just a monkey picking a trade. How does anyone know any time, effort, or research went into the trade?
The training at Option Genius was not up to par with most other investment advisories we researched, there was not any video, which we always appreciate for making things easy to understand, it was all pdf files.
Some of the documents Option Genius supplies for education were good, but we found them to be not very stimulating. Finance is not the most entertaining topic, especially for new investors, so having high-quality education to keep users engaged is a huge perk. This was not important for Option Genius.
Should You Trust Allen Sama?
That is a very good question, there are lots of reports of unhappy customers, but there were a couple of other things that were a bit more concerning to us. For example, why is there no picture of Allen Sama anywhere? Is that a real person? Allen just has different cartoon characters that represent him. Even his LinkedIn page shows a cartoon version of himself. That’s so weird. Are we hiding from something Allen? Why don’t you want to show your real face?
Also, Allen is self-taught, which is a great story, nothing wrong with that, but in our experience, we would much rather learn from someone who actually worked in the field of options before opening their own advisory. Not so sure if opening a website named Option Genius actually make you an option genius.
I was not really a fan of the Option Genius business. Although founder Allen Sama has a great story of how the business came to be, education and training were not on par with most other training centers and returns do not appear to be even as close as good as Allen has made them out to be.
We really don’t like it when we see past customers posting viewers to review sites talking about how disappointed they are.
We do like the price point, but in this case, it appears you get what you pay for.