I'm not defending Michael Lewitt or the advice he offered through his Zenith Trading Circle but there are some other things to consider. 1.
Whether it was due to Trump or simply the Fed's ongoing infusion of liquidity into the equity markets over the last 12 months, the fact is that the broad market has outperformed almost everyone's expectations. To such an extent that even the worst companies have been "lifted" by the rising tide. Just look at SHLD. The old adage, "the trend is your friend" has played out in almost every corner of the financial markets since Trump was elected, causing the stock of some of the worst companies in America to increase in price, in some instances to levels that defy logic.
2. Many of Lewitt's short recommendations are based on sound fundamental analysis. SHLD, M, JCP, TSLA and CMG come to mind. Notwithstanding the fact that SHLD is likely to file bankruptcy within the next six to twelve months, if you had entered a short trade with all five of these stocks back in October/November of 2016 when I first heard Lewitt touting them as short plays, you would be doing VERY well on all except TSLA which continues to defy logic as one of the most unprofitable companies to ever have a stock that trades for more than $300 a share...
3. Whether Put options were the proper strategy for shorting these stocks, or any others for that matter, is subject to debate. Especially if someone isn't a seasoned options trader. Unless you understand options and in particular how to price options BEFORE deciding whether to buy them, it is highly likely that you will lose money on most options trades.
I have been short SHLD and M for almost a year now and would have shorted both TSLA and CMG if the stocks weren't so expensive but unfortunately they are a bit too rich for my blood in terms of a short play.
I am not invested in options, rather I am actually short the stock. In both instances I am sitting on a substantial gain at this point and when SHLD finally does throw in the towel and files for BK protection it will generate the largest gain I have ever realized on a stock trade.
Product or Service Mentioned: Money Map Press Zenith Trading Circle Subscription.
Reason of review: Investments are profiting nicely.