| I've never heard of Commonwealth Financial Group, but there aren't
many things riskier than futures. Buying the futures options are less
risky (because loss is limited) but unless you are a financial expert or
are real comfortable with this guy then I'd stay away.
It reminds me of the day a commodities broker called me out of the blue
during the autumn and wanted me to buy oil futures "because the demand
for heating oil always goes up in the winter, right!?"
I kept the idiot on the phone for as long as possible just so he wouldn't
be using that time to call someone else - and so his company would lose
as much money as possible paying for the phone call. It sounds cruel,
but I'd heard enough from this guy to know he and his firm shouldn't
have been licensed.
One more thing...if Commonwealth Financial REALLY knew where unleaded gas
was going, they wouldn't need to be calling you for commissions. You can
make/lose money really fast in commodities. (I prefer stocks/bonds myself -
it's not as much a zero-sum game and the risk is reasonable (and I know
a lot about them)).
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| > and deal in commodities. Right now they are recommending call options
> on unleaded gas for july. Is this a good company and how risky is
> this type of an investment?
Ask them what the commission is. Anybody can get $35 commissions
on futures options via various discount brokerages. If they won't
tell you flat out what the commission is, hang up. If it's over $35,
ask 'em what services they provide that makes it worth the extra money.
Ask if they are -CLEARING- members of the NY Mercantile Exchange.
Betcha they aren't. Only the strongest firms are clearing members,
heck they're probably not even members. The smaller they are, the more
likely you'll find your funds tied up in litigation before being
returned to you.
Is it risky? No, the worst you can do is lose all the money you've sent.
Is it a good deal? Opinions vary, which is why we have markets, but
I think we'll see the petro complex work down from mid-April thru June.
Everybody in OPEC wants to pump more oil. The designated wild-cards,
Iran and Iraq, can cause trouble anytime though. The market knows this,
so options tend to be more expensive than justified by price alone.
John
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