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My husband is thinking about putting some of our money in the stock market with something called "Call" (I think). Some guy named Weiss says it's a good idea as we could make bunches of money before January, 2000. Will some one PLEASE explain what this is and if it's a good idea? Personally, I can't see sending the guy $5,000 just to have him tell us which stocks to buy and sell, even if he sends the info by fax or e-mail!!! HELP!!!!

-- Flagirl (Flagirl@mrssurvival.zzn.com), January 27, 1999


Speculation on the price of a stock is always risky. If you guess wrong, you lose. If you have not dealt with this man (or any other broker) before, I would hesitate to send him (or someone else) the money in the mail. If you "COULD" make large amounts of money, you could also lose everything. Anyone who PROMISES that you will make lots of money is probably lying. You cannot promise such things. Sometimes you win, sometimes you lose. Read the fine print. Check out his background. If Y2K is bad, you will need all the money you can get. Why risk it? I would invest in preparation first.

-- skep (skep@tic.com), January 27, 1999.

Martin Weiss is the current publisher of "Safe Money." He took over this publication from his father -- a veteran of the crash of 1929 about two years. Weiss also does a highly regarded assessment of insurance3 companies and banks: his ratings on financial institutions have proven to be more accurate than the two most quoted ratings.

One of his leanings is to speculate in options -- put options or call options. These aren't stocks.....they're options to buy or sell stocks. They can be highly profitable, and they can be dangerous if you don't know what you're doing. The Weiss service is to provide the timing and the indication of the precise option to buy. In effect, you're paying him $5000 for the knowledge that few people have.

Martin Weiss is highly creditable and reputable. That said, options are speculations.

There is the chance of substantial gains -- 200 to 1000%. There's also the chance to lose the money you put into options. One good thing about options: if you invest $1000, you can lose $1000, but you can make anything from $10 to $1,000,000 on that one trade. Your losses are capped, your gains aren't.

Be aware that most successful options traders may have 8 or even 10 losing trades for every winning ones. In other words, 10 trades might lose $500 each, and then a winner would return $20,000. The net, for $5500 invested, is a $15,000 profit. It can be good. Course, you need to know when to stick with that trade that's going to return the $20,000. That's what you pay Weiss for.

You're right to ask. Enter at your own risk, but in the market that may lay ahead, buying put and call options can be very profitable if you know what you're doing.

-- De (dealton@concentric.net), January 27, 1999.

it sounds like call options, and i wouldn't advise them to anyone who doesn't do his homework first. buyer beware!

-- jocelyne slough (jonslough@tln.net), January 27, 1999.

If this money is going to Burnsville Mn., You probably won"t see it again

-- dave (wootendave@hotmail.com), January 27, 1999.

No offense, but you are an amateur about to lose a lot of money. Don't let greed drive your actions. If you don't already have a thorough knowledge of puts and calls, this is not the game for you. If you want to "gamble" in a reasonbly safe fashion, buy gold coins and hold onto them. They might easily triple in value over the next 18 months.

-- RD. ->H (drherr@erols.com), January 27, 1999.

Sorry about that post above, but my computer crashed and posted is before the message was finished. In addition to his "Safe Money" newsletter, Weiss also participitates with a group of speculators in Burnesville Mn. in an advisory service recommending stock options.

The deal is always "send me $5000 for a year (or six month)subscription to and you will get our recommendations weekly by fax. Make big money, etc etc." Weiss is not involved in developing the option recommendations, but serves only as a non-exclusive agent.

-- dave (wootendave@hotmail.com), January 27, 1999.

Thank you for your imput. I printed out all the answers and will show them to the husband. Now, if he will only listen!!

-- Flagirl (Filterlady@aol.com), January 28, 1999.

The cautions already expressed are wise. I notice a curious lack of explanation of what options really *are.* If anyone is interested in additional info on the subject, I can take a stab at it later.

-- Elbow Grease (Elbow_Grease@AutoShop.com), January 28, 1999.

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