Son gives him an optional proposition

DEAR HARRY: My son came to me with a proposition that we form a partnership for investing. He has been working for a bank for five years, and he has learned a lot about options. He will still keep his job and do the partnership investing as a side deal. I'm not sure about how this will sit with his bank, but he said that others are doing it and have for a long time. We each will put up $50,000 as initial capital. The deal is that he will invest in options - puts and calls and related sophisticated investments. He said that he tested the system on paper for 2014 and netted 22 percent on his imaginary initial investment of $50,000. I know you're a pretty conservative investor, but I'd like your opinion, anyway.

WHAT HARRY SAYS: On a personal level, I have known only one person who made decent money by investing in puts and calls. He was lucky enough to buy calls on Apple early on. He was so sure of his analysis that he once had more than $100,000 in these options. He made almost $1 million on Apple transactions. I have never dealt in either puts or calls at either the buying or selling ends, and I have never regretted it. Do this only if you can afford to take a big hit, and only if your temperament allows you to sleep with hefty risk. If you do go for it, I would appreciate hearing your results for the remainder of 2015.


Email Harry Gross at harrygrossDN@gmail.com, or

write to him at Daily News, 801 Market St., Philadelphia, PA 19107. Harry urges all his readers to give blood. Contact the American Red Cross at 1-800-Red Cross.