Mr. Kadavy has answered the following questions from readers that may be helpful to others. If you have a question, please use the "E-mail Me" button above. Answers will be provided by return e-mail and, if applicable to a broad cross-section of readers, will be posted to this page:
Q. What is the case for and against using an investment advisor to assist an investor with option writing?
A. There is nothing wrong with using an investment advisor to assist you with option writing if you feel that you are not capable of doing it alone or do not wish to spend the time to research stocks, select ETFs, review option alternatives and initiate trades yourself through a discount brokerage. All of my option books for individual investors are written with the objective in mind of providing a complete turnkey course so that investors can make their own decisions and execute their own trades utilizing low-commission discount brokers. If an investor prefers to use an investment advisor for this purpose, I would offer three pieces of advice: (1) make sure your advisor is knowledgeable about options and options trading...many are not; (2) negotiate the best possible commission schedule for yourself, as the option trades will increase your commission costs and increase your advisor's commission income unless you are on a fixed commission program; (3) monitor your advisor's overall performance on a quarterly and/or annual basis so you know whether you are getting the results you expected.