Ask Doc My secret project has filled up my e-mail inbox with your questions...
Over the past 12 months, my team and I have worked on a strategy to take stock recommendations from Stansberry Research and multiply the profits by 10 to 20 times.
The simple fact is: We found a clever way to outperform any stock analyst at Stansberry... which means if you're reading any of our research letters, you're not making nearly as much money as you could right now.
On Wednesday, I released the details of this powerful trading strategy.
Thousands of you watched and asked questions about how you could take advantage of this strategy or how it fit with our other research services. And while I answered as many questions as I could in the limited amount of time I had, I couldn't get to everyone I wanted.
So today, I've asked my Advanced Options research team to take over this Q&A issue to help me answer some of those questions. If you want to learn more about my latest service and how you can start multiplying your gains, keep reading...
And keep sending your questions to us at [email protected].
Q: Will you recommend less expensive companies where covered calls can be sold? – D.F.
A: We sell covered calls in Retirement Trader, and we're good at it. As you know, we've got a 95% win rate. But you're right that covered calls come with a challenge... You need to buy 100 shares to "cover" each call option you sell, so if the stock has a high dollar price, that can take a good deal of capital. If you want to sell a covered call on Apple (APPL) for instance, it will cost over $16,000. If you want to diversify between different trades, that can require a big portfolio.
Advanced Options is different. We're not using covered calls. In fact, the trades we recommend can be bought with very small minimum investments, no matter what the share price is. I'm looking at Apple's options chain right now and it would only cost me about $210 to open an Advanced Options trade on Apple. And if the trade works out, that $210 will turn into $500.
The majority of trades we recommend will cost between $100 to $300. It's rare you'll ever have to pay more than $500 for a trade. That means you can make multiple trades and properly diversify, regardless of your portfolio size.
Q: How important is it to be able to place the trades on the same day as the recommendation? I live in Western Australia where I have about a 12-hour time difference. – B.L.
A: Options prices are volatile. They move around a lot and that's one of the challenges with a service like this.
For Advanced Options, we'll provide guidance as to what price to pay. Also, we'll focus on something called a spread price. Spread prices aren't as volatile as individual options prices.
Typically, the spread price will stay about the same even if there is a move in the stock.
We think there will at least be a few days after we make an Advanced Optionsrecommendation to still get the price we quote in the issue. Trading from Australia should be no problem, B.L.
Q: What is the difference between Retirement Trader and Advanced Options? – F.B.
A: Great question F.B. Both Retirement Trader and Advanced Options use the options market, but that's about as similar as it gets.
They have two completely different goals. The goal of Retirement Trader is to produce consistent income month after month. We do this by selling options on the best companies in the world. Each month we consistently rake in hundreds of dollars that subscribers can use to pay bills or gradually build up their nest egg.
Advanced Options, on the other hand, is a speculative strategy. We're not aiming for 2%–6% gains every month... we're aiming for gains of 100%, 200%, 300% and higher. In baseball terms, we don't want to hit singles, we want home runs.
We want to turn a $200 bet into $600. Or turn a $850 bet into $2,125. If that sounds interesting to you, click here to learn more about this strategy and receive a special "charter member" bonus.
Q: Can I use Retirement Trader and Advanced Options together? – P.C.
A: Absolutely. In fact, I encourage it.
Ideally, and if your portfolio allows it, you can use the Retirement Trader strategy to collect safe income each month and, in a smaller portion of your portfolio, use Advanced Options to shoot for triple-digit gains.
One thing is clear... folks don't know how to use options correctly. That is what I'm trying to teach subscribers with both of my options services.
Q: I'm concerned that if recommendations are very short-term, investors have to become a day trader and remain glued to their computer. That may not be possible for everyone. – R.L.
A: You won't have to be a day trader.
First, you'll know exactly when the new trades from Advanced Options will hit your inbox, and it's only twice per month.
Most trades will last between one to four months.
Additionally, we'll know precisely what the maximum gains and losses will be at the start. With that in mind, we can make a very specific plan for exiting the trade whichever way it may go.
For most of our trades you can get in and just wait until a week or two until expiration to see how it has played out. You see, these trades usually don't reach their maximum profits until we're a few days from expiration.
For example, we recommended an options trade on Ingersoll Rand (IR) on April 24. Our expiration date was June 15. We got in, the stock shot up right away, but we didn't think about closing until it was closer to expiration. On June 8, one week before our expiration date, we sent instructions to close the trade for a 201% gain.
Or take CVS (CVS). We recommended a trade on the pharmacy giant on September 13. The expiration date was November 16. We didn't send instructions to close until November 13 – for a 104% gain.
If you're interested in learning more about Advanced Options, click here.
Have a question we didn't answer? Send it our way... [email protected].
What We're Reading...
- Did you miss it? You may never trade the same way again.
- Something different: Marriott hack hits 500 million guests.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
December 7, 2018