Easy Money Options Performance
Section 1. Safe Options and 100% Profits
After eight extremely profitable years of publishing my Momentum Options advisory service, I’ve decided to launch Easy Money Options. I repeatedly heard from many readers that they were also looking for a more conservative options-trading strategy to meet their low-risk tolerance, high-reward investing needs.
As you already know, taking balanced risk is the key to becoming wealthy. So, Easy Money Options was launched with that in mind. We focus on buying in-the-money options in the $1-$5 (per contract) range on the big-name stocks you know and love — those that are trading within a solidified trend — up or down. I target in-the-money options because they provide the same profit potential with only a fraction of the risk that is involved with buying out-of-the-money options.
For traditional investors who are looking to supplement their stock returns with a more explosive strategy, trading in-the-money options can do just that. Because in-the-money options tend to move in lock-step with their underlying stocks, you can count on generating a near dollar-to-dollar return that is similar to a regular stock trade. However, since the cost of buying an option is far lower than buying the stock outright, a one-dollar move in an option results in a much greater return in percentage terms.
For example, a one-dollar move to the upside in a $100 stock would equate to a 1% return. However, a one-dollar move to the upside in an option that costs $3 equates to a return of 33.33%. This is the power of in-the-money options.
Over the last year, I have been testing this low-risk/high-reward strategy, and it has produced some amazing results. Take a look at some of the returns our in-the-money options have generated so far in 2016, a year in which the benchmark S&P 500 index has gone virtually nowhere…
|AAPL April $105 Calls||+35.14%|
|FB April $113 Calls||+23.64%|
Now compare those returns to what you would have made had you just invested in the underlying common stock during the same timeframe:
With this strategy, you’ll significantly outperform a traditional stock portfolio and the broader market as well.
And because put options enable us to play the market when it makes a down-side move, you will never have to sit idly by as the value of stocks in your portfolio crumbles away. Instead, we can play both sides of the eternal battle between the bulls and the bears and use put options on stocks that are falling to generate outsized profits.
Imagine turning a $5,000 investment into $6,500, $8,000, or even $10,000 in just a matter of weeks and you’ll understand what it’s like to be an Easy Money Options member. My next new trades are on deck. Don’t miss out!