Not long ago I discovered that there is a company called Obama Binary Options in the Dominican Republic. Embedded below, for peer review, is a copy of their training manual:
Obama Binary Options by Lucas Daniel Smith
The name Obama Binary Options might sound a little cheesy and contrived but I’ve seen other businesses in the Dominican Republic capitalize on the Obama name. Readers of the WOBIK blog may remember:
Obama Binary Options operates several websites, the company calls them platforms, although none of them that I am aware of mention the name Obama.
The company appears to be a multi-million-dollar fraud which operators 24 hours a day, seven days a week and appears to have been in business for a little under a one year. Their primary target appears to be Americans.
What are binary options? In my opinion binary options belong in a casino because they are nothing more than betting on whether or not the price of a stock, indices, commodity, security, metal or currency with rise or fall within a specific period of time.
With binary options there is a start time and an end time. It the price is at $53.59 at your start time (i.e., the time that you place your bet) then you will win or lose depending on the price at the end time which can be almost any amount of time including just a couple of minutes. If you place a put (i.e., you bet that the price will go down) you would win if the price ends at anything below $53.59 and if you placed a call (i.e., you bet that the price would go up) you would have lost.
This sounds like gambling. Is it illegal? No, its not illegal and binary options are legally bought and sold in the United States.
The problem, or one of several problems, with Obama Binary Options is that they are a shell company which operates shell websites and once you deposit funds with them, in order for you to invest yourself, you typically cannot withdraw your funds (outside of a credit card chargeback), even when you are making profits.
Typical deposits range from $2,000.00 to $50,000.00 Dollars, Euros or Pounds. The company’s objective is for you to deposit your money into your trading account.
This is report #1 in a series I will be publishing here at WOBIK regarding Obama Binary Options.
If I can gain access to the company’s facility I will attempt to discreetly take pictures. If not I will try to take pictures of the outside of the facility, from a safe distance.
If readers of the WOBIK blog have experience with, or are familiar with, ‘binary options’ please let us know in the comments section.
Please exercise your free speech in the comments section below. There are no stipulations of political correctness on this blog. Speak your mind, give us your thoughts, both objective and subjective. Share your ideas, hunches, inklings or your expertise. Please provide recommendation and corrections if you spot errors in fact within the blog report. Lastly, remember that posting a comment is much like casting a vote, so please do so.
that pic was taken inside the parking lot of SantoDomino’s main hospital. You went there for your failed attempt of providing evidence about you at CPGH. The sc “African settings” scheme where the rooftops of Cristo Rey would equate to Mombasa slums.
https://www.google.com/maps/@18.459195,-69.906299,3a,75y,90t/data=!3m5!1e2!3m3!1s82986673!2e1!3e10?hl=en
close to hospital and not AT hospital. Sorry. Also not far from US embassy
Add peer review to the list of terms you don’t understand.
BobJ wrote:
The only term he understands is “Sucker Bruce Steadman out of more money!”
Lucas,
Very interesting!
I don’t have any experience with ‘binary option’ trading (which appears to be basically ‘day trading’ or ‘scalping’ in the options market) but I have a LOT of experience in ordinary OPTIONS TRADING with a major, top-drawer, U.S. brokerage company.
One of the most RISKY securities investment decisions a speculator must consider, regardless of the vehicle (stocks, ETFs, bonds, commodities, currencies, etc.) is TIMING. One may be totally CORRECT, based on accurate research and good judgement, of the DIRECTION in which the price of the security will likely move over a reasonably long period of time. However, almost ANYTHING can occur that might impact that security’s value over a period of minutes or hours.
For example, regarding currency trading on the US$, a single statement regarding the economy by a single Federal Reserve Official at some obscure conference, once it is broadcast electronically, can cause the listed price of the US$ to significantly rise or fall, SHORT TERM.
Options, by their very nature, MAGNIFY (add leverage to) the amount of money that can be either gained or lost on any particular trade. The trading of ‘Binary Options’ appears to be a VERY RISKY ENDEAVOR, with all the profit cards stacked heavily against the trader.
You mentioned:
I suspect another way the customer of the ‘Obama Binary Options’ company loses money ON EVERY TRADE is by paying excessively high commission fees to the company owners. That is, one could likely conduct the same trades through a reputable broker and, though the inherent risk would still be there, would end up either making more (or losing less) than conducting their business at ‘Obama Binary Options’.
I have traded many hundreds of ordinary stock options over a period of years. These have included SELLING Covered Calls on stocks I already own, and SELLING Cash-Covered Puts on stocks I might wish to purchase or at least wouldn’t mind too much owning for awhile. I have also been reasonably successful in BUYING ‘slightly in the money’ Calls and Puts on the SP-500 (SPY ETF) having an expiration date of about 1 month. Purchased options lose value with time and can eventually expire worthless if they are not ‘in the money’ at the time of expiration. Purchased options, especially, must be watched very closely and closed out as soon as possible.
When one SELLS an option, the value of the option decreases over time FOR THE UNFORTUNATE BUYER, until the option’s expiration date.
When one BUYS an option (as occurs with ‘Obama Binary Options’) the value of that option decreases over time for YOU, the BUYER, until the options expiration time or date! BIG DIFFERENCE.
Trading using the services of ‘Obama Binary Options’ appears to me to be ‘legal’ but most definitely, inherently extremely risky for the speculator with the chances for profits heavily stacked in favor of the company.
ps. HOT TIP!
I have been a committed ‘LONG’ on Lucas Daniel Smith (LDS Inc.) since the summer of 2009!
Bruce wrote:
lol! Thanks Bruce!
Bruce wrote:
Bruce, this company (and it’s several shell websites) advertise NO COMMISSIONS. As I post addition reports I hope to demonstrate that the ONLY way the company makes money is by taking customer deposits and then misleading the customer with bad ‘trades’ (employees identify themselves as ‘brokers’ but are nothing more than ‘boiler room’ employees who have an understanding of the English language) and, when the customer does make a profit, not allowing the customer to withdraw their funds and locking the customer out of their own account.
As far as I know, no one posting online (aside from myself), knows that this company is physically located in the Dominican Republic. The company has gone to GREAT lengths to conceal their location.
The owners (if they can be called that), who also work at the site, are from the middle east and the place is a high-class (by Dominican standards) ‘boiler room’.
I would compare (100%) to:
ps. ANOTHER HOT TIP!
– and our readers can take this one to the bank.
I currently hold a very large ‘SHORT’ position on Alinskyites Inc. (formerly named Obots Consolidated)
Lucas Daniel Smith wrote:
I probably used the wrong term, ‘commissions’ in my statement. It’s certainly understandable that the company wishes to advertise ‘no commissions’.
However, I would be VERY SURPRISED if the company is not earning ‘trading fees’ of some type based on the ‘bid/ask’ spread on the options. They, of course, have to PAY TRADING FEES to the MAJOR OPTIONS HOUSES who actually conduct every trade, so it is only logical that ‘Obama Binary Options’ would charge ‘trading fees’ of some type to their customers on every trade.
I don’t understand how their business plan would be viable without them charging ‘trading fees’ of some type to their customers on every trade. The big, reputable brokerage houses all charge trading fees but their fees are made known to the customer.
I suspect that Obama Binary Options is simply charging unusually high trading fees, but keeping these fees hidden from the customer.
THESE FEES ARE NOT BEING SHARED BY THE COMPANY AS ‘COMMISSIONS’ WITH THE INDIVIDUAL BOILER ROOM WORKERS!
We’ll see what your research on the matter turns up.
Bruce wrote:
Bruce, the problem is that this company is nothing more than three (3) relatively young and extremely intelligent guys (each from the same country in the middle east) with several websites which they built themselves and a ‘boiler room’ in the Dominican Republic.
There is nothing beyond that. They do not pay trading fees to anyone because other than their websites, credit card processors in east Europe and bank accounts in east Europe, the do not exist.
They make A LOT of money. There are 3 shifts 8 hour shifts (day, night, overnight) and what I have approximated at about 30 employees per shift. A employee can EASILY pull in a $5,000.00 deposit (if not MUCH more) during an 8 hour shift.
A low end figure would be a total of $450,000.00 (nearly half a million) dollars per day. (Several of the employees often pull in $50,000.00 per shift by themselves.)
Employees (Dominican) make 100 pesos per hour (or $2.50 US dollar per hour) and a commission (paid by the owners, not the customers transaction) of about 300 pesos on every $1000 dollars, euros of pounds that they bring in.
As you can, the 3 owners are making a fortune.
Lucas Daniel Smith wrote:
You mean they PERSONALLY employ someone to serve as a their own TRADER on the Chicago Board Options Exchange (CBOE), for example, who conducts the actual option buying and selling negotiation activity?
http://www.cboe.com/
I DON’T THINK SO!
They definitely ARE paying trading fees to someone on each and every trade!
Bruce wrote:
No, not at all. There is no interaction between the company and Chicago Options Board Exchange (CBOE).
Obama Binary Options is a scam.
Betting on the binary options is done online by the customer at the scam websites operated by Obama Binary Options. The customers makes a deposit (credit, debit or bank wire) on the websites. The customer clicks on a currency or stock or commodities and bets up or down. Brokers (any they really aren’t brokers) call the customers to encourage the bets.
1. CUSTOMER $$$ 2. transferred via scam website 3. in the scam company’s bank account.
Lucas Daniel Smith wrote:
Uh-Oh. Now I understand. Actual option trading is not even being conducted?
Apparently then, they are just LOOKING ELECTRONICALLY at the publicly available, published PRICE of the asset at the end of the expiration time and either paying out the reward money to the customer or pocketing the customer’s up-front ‘bet’, depending on the direction in which the asset price moves during the allotted time period.
I suppose the COMPANY has established control limits on the payout amount in the case of a reward, so limits its own risk?
I don’t think BHO-II would be very happy if he knew his name was being used on THAT kind of scam company!
Bruce wrote:
Bruce, you are correct. Also, please see forum mail.
Thanks.
Bruce wrote:
Regarding the payout, when a customer does win, the company typically does NOT allow the customer to withdraw funds. Sounds crazy, I know. All of the suddent your withdraw is canceled or there is some talk of needing to provide documentation and finally the customer is locked out the account. Typically though the ‘broker’ (not a real broker) will end up convincing the customer to deposit MORE money and keep waiting on the withdraw process.
A very confident Lucas’ schooling a very servile Bruce. All so tranquilizing one would belive the horrible extradition was just a bad dream
Do you two swingers know anything about EXTRADITION TO KENYA ?
Bruce, I planner on discussing more about ‘binary options’ in additional reports on Binary Option (and I will be) but I wanted to mention that we are dealing with “non-exchange traded binary options.” These are legal, sort of, but what Obama Binary Options is doing is, in no way, legal.
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