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Can someone please advise where that "85% of options expire worthless" stat came from? I heard it came from a CME report from the late 1990's, but the CME people I've contacted don't know anything about it. I found this info from the CBOE which claims 30-35% expire worthless...

Agreed. The '85 ruling was a freedom of speech issue, and auto-trading has brought in a whole new dynamic that the states and SEC have yet to fully weigh in on.

Interesting judgment which should get the interest of other state securities officials. Thus far, the SEC and states have kept their hands off investment/advisory newsletter services as they don't deliver personalized investment advice (resulting from an '85 Supreme Court ruling). If...

"...does not accept order flow?" You mean payment for order flow? Read: http://www.thinkorswim.com/tos/displayPage.tos?webpage=orderRoutingReports

Small investors would be better served if the SEC took note of some actions taken their Australian counterparts - ASC. They're more proactive in guarding the public against deceptive advertising/content found in many educational and newsletter services and now require IA-equivalent...

So he's predicting a trend, then?

They were merged into Option Planet, thinkorswim's education arm.

You can check Hulbert Financial Digest on Marketwatch. There is no regulatory requirement by investment newsletters to publish performance results as the information is not considered personalized investment advice (Lowe vs. SEC, 1985).

I've asked around and many US exchange people contend its cultural. Local traders buying far OTMs, gambling on hitting a home run. Haven't seen OTM vs. nearby/ATM volumes to verify, though.