Don’t be fooled by other option investing sites that post huge return numbers. What these sites all do is tell you when to buy the option and then totally leave it up to you to pick when to sell. What kind of service is that?
In most cases a position will increase in value at some point, but knowing when to get out of the position is key, especially when you are dealing with buy side single leg positions.
It’s really a scam and misleading statistics, it works like this. The site will tell you to buy the XYZ Jan 100 call for $1.00. If the position increases to a value of $1.50 over the next 30 minutes, but then starts to fall rapidly and by the end of the day is worth only $.50 the site will show that it had a 50% return on investment for a big win, even though no one sold it there, not even the analyst who recommended the trade. The fact is the majority of the people on this trade likely lost.
These types of sites do this over and over again showing best case scenario trades that no one actually ever gets. The only way they show a loss is if the recommended trade goes straight down after the being posted. If at any point the trade goes positive, even if it is just for a second, the site will show it as a win.
Watch out for such misleading statistics, if the returns look too good to be true, the investment site is probably doing some kind of tricky reporting system like described above.