Building Wealth Doc's note: Today, Health & Wealth Bulletin Managing Editor Laura Bente sits down with Matt Weinschenk, Senior Analyst at Stansberry Research and one of the folks who helped me design an advanced strategy that shows you how to "boost" gains in the stock market...
Laura Bente: Hi, Matt. Thanks for taking the time to sit with me today.
For a few months now, Doc has been running his newest service: Advanced Options. As the senior analyst on this latest venture, can you give us an idea of what readers are experiencing?
Matt Weinschenk: Advanced Options takes the best ideas that Doc, Steve Sjuggerud, and Porter Stansberry recommend... then we design an option trade that can boost your returns by five times or even 10 times. We've tested the strategy in live markets for a year and then started publishing recommendations in December, and the results have been great.
We've published trades where a 6% move in a stock has turned into a 60% move in the options, for example. That's a 10 times boost to your gains. And it only took about two months for the trade to play out.
Laura: So you can take the same stocks and make a different trade for bigger gains?
Matt: Yes. Options can be used to tailor your risks and returns on stocks. It's almost like magic. You can turn risky stocks into safe trades... and you can profit no matter whether stocks go up or down or nowhere.
For eight years, Doc has run an options-trading advisory called Retirement Trader. And in that service, we use options to make repeated, small, and safe gains. It generates income – earning extra money on safe stocks again and again. That's why it has a 95% win rate.
Still, we hear from readers that they want another type of trade. They want to make big money. They want to use options to double or triple their investments.
And options can be used for such speculation as long as you know what you are doing.
Laura: Speculation... Does that mean it's risky?
Matt: Well, yes and no. First of all, everything you do in stock markets involves risk.
Second, this is aggressive. Option prices move fast and if stocks don't go our way, the options will go against us. We enter every trade knowing we could lose 100% of our capital.
On the other hand, we're aiming for triple-digit gains – so we're getting paid for our risk.
Also, traders can buy these positions for small investments of $200 or $300. With such small position sizes, our capital at risk is limited to what we want to put into it.
Laura: I know that options trading can be intimidating for some people. How "advanced" is this?
Matt: Options take some time to understand, but anyone can do it. We've taught thousands of readers how to trade options in Retirement Trader, and a lot of them thought they'd never be an options trader.
To that end, we've developed a lot of educational material that'll take people all the way from beginner to expert. We've never put together something as comprehensive as this before, and we're excited to share it with people so they can get a full understanding of how this kind of options trading works.
Laura: And this leverages the investment ideas that already come out of Stansberry Research?
Matt: Yes, the plan is to work through all the great stocks that come from our editors and help our subscribers find option trades to make them better.
It's really got two parts to it. We want the educational materials that we've developed to show people how to do this on their own. But then we're going to be constantly sharing trade ideas based on Stansberry Research's top stocks so that you can trade them or just use them to further your education with real-time guidance.
In fact, we've worked out a deal that subscribers will get access to our top three newsletters so that they can see the full research report from our editors and then later on the advanced option trades will come along.
Laura: One complaint I've heard from our readers is that they think trading options is just too expensive... Unless you're someone who has a huge portfolio.
Is that true with the strategy you're using in Advanced Options?
Matt: One of the benefits of Advanced Options is that traders can buy these positions for small investments of $200 or $300. With such small position sizes, our capital at risk is limited to what we want to put into it.
This is great if you have a smaller portfolio and you just can't afford to put thousands of dollars into one position.
With the small position sizes and the big potential gains, we're trying to make this an exciting way for people to engage with stock markets, have fun, and make some money in the process.
Laura: Thanks again, Matt. Advanced Options sounds like what a lot of our readers are looking for right now, given the market's recent volatility.
For our subscribers who want to learn more about Doc's newest service, Advanced Options, make sure you tune in this Wednesday, June 19, at 8 p.m. Eastern time.