Trade Like Chuck by Chuck Hughes Review

Chcuk Hughes is an expert options trader. I have been a member of the Inner Circle for many years and have made a lot of money. Not all of his trading programs are as good as this. He does have some other companies that do marketing for him, and some of them are pretty aggressive. I believe that The Inner Circle trades are the best. Chuck also has online classes that are extremely helpful, especially for new traders. The teachers are experts and will always answer your questions as best as possible.

Chuck’s GROW presentation depicts an options strategy with an impossible outcome and thus is fraudulent if used to promote his advisory service.

Scroll forward to where he says “The upside down way we combine a deep-in-the-money CALL with an at-the-money PUT to create incredible GROW trades that simply can not lose is something even experienced option traders have never seen before.”  He then displays his market neutral calculator with the data Stock: CL  Stock Price: 77.72  Call Strike: 70  Call Price: 1.885  Put Strike: 77.5  Put Price: 1.615 His calculator shows a profit for all movements of the reference stock from +20% to -60%.

It is not possible to buy a call strike 70 for 1.885 because it already has an intrinsic value of 7.72.  Add to that time value and implied volatility and the price would have to be considerably more. The calculator may be good but it will give incorrect results if fed unrealistic data.  Later on he gives another example.

Stock: CL Price: 72.5 Call Strike: 50 Call Price: 17 Put Strike: 72.50 Put Price: 1.42

If CL were trading at 72.5 it would not be possible to buy a strike 50 call at 17. The price
would have to be higher than 22.5, considerably higher if there were a long time to maturity. Chuck’s calculators are simple and can easily be duplicated with a spreadsheet. They do not involve complicated option valuation formulas and are available not only to subscribers but to anyone on the internet. They are incomplete in that they do not consider time to maturity or implied volatility. Chuck does not seem to realize that there is such a thing as implied volatility. He bundles it with time decay whereas the two are independent and can move in opposite directions. These two examples represent put-call straddles, which are not Chuck’s principal strategy. His principal strategy is the debit call spread in bull markets and the debit put spread in bear markets. Chuck created these examples as examples of hedging a previously profitable call purchase with a put and the put and call were not bought at the same time. Someone on Chuck’s staff has used these examples to make it appear that Chuck can magically create a straddle that cannot lose. No one can do that.

While Chuck’s strategy calculator may not lie, people can, and they can do so not only by
claiming things that are not true but by concealing important facts. That is the case here. I
have studied Chuck’s strategies in detail and apart from a few omissions and misconceptions I think they are quite good. I do know that the GROW strategy is not Chuck’s principal strategy. It is one he seldom uses and then only to hedge a call position that already is profitable. Although he sometimes buys calls, his principal strategy is to use debit put or call spreads, depending on the direction of the market. The two examples represent straddles that would be impossible if the put and call were bought at the same time. In reality the calls were bought first and the puts were bought later once the calls proved profitable, but the presentation does not say so and the reader is left to believe that Chuck has a magical way of creating straddles that cannot fail.

I have lifetime subscriptions to Chuck Hughes “INNER CIRCLE” and “WEEKLY OPTION ADVISORY” from which I receive recommendations weekly and which I follow as recommended except for recommendations that require me to buy stock or ETF shares since I don’t have enough capitol to follow those recommendations. I stopped doing my own trades and have only followed the Chuck Hughes options recommendations. The results have been amazing in 2019 through 12/02/2019. Fidelity says my combined trading accounts have realized over 50% gain through 10/31/2019. My only complaint is the frequent sales calls trying to sell other services which is a complaint I have had for other investment services companies. For me Chuck Hughes has not been a fraud.

All I can say is thank God for website reviews like this!

I have read investment newsletters for 30 years, and from 1980 through 2018, was licensed to sell investments, did ok, when I gave up my Series 6, 7, and 23, maybe some others, was earning (well, getting) about $40,000 annually from what the industry calls “trails”. I can only suggest, not recommend, one publisher, Stansberry. There is no free lunch, you must learn, you must study, you must paper trade, and once you have settled on a strategy, execute. Please don’t pay for anything until you are a successful trader, then be very picky……….

The majority of the investment mailers I would say 90% are scams. If these people are such good traders why are they going through the trouble creating so called training material and charging exorbitant fees, I am sorry they are philanthropist they seriously want to make you POOR.
For some reason most of these mailers are operated by LINCOLN INSTITUTE and these people are very nasty. I ones forked out $3000 with the promise of trading along side the experts but no such thing. After filing a report to BBB in their city I finally got my money back. It was so long ago but I believe they are in Salt Lake so check the BBB their for LINCOLN INSTITUTE. They make $M from scamming people I can’t believe they are not shut down.