December 13, 2019
Does the word “options” confuse you?… intimidate you?… even scare you?
You’re not alone. But “options” doesn’t have to be a dirty word…
All week, we’ve been sharing essays and stories about Dr. David “Doc” Eifrig… and his knack for making options easy to understand.
Today we’ve got another one for you… about how to keep making money even when the stock market stalls. (This bull market can’t last forever!)
Also, Doc just made a pretty big promise. He’s committing that he will recommend 20 winners in his Retirement Trader newsletter in 2020 – guaranteed. If he doesn’t deliver, subscribers will get an extra year of Doc’s newsletter for free… something he’s never done before. Click here for more details.
Keep Making Money Even When the Stock Market Stalls
By Dr. David Eifrig
At times, Las Vegas mystifies me.
I’ve been to Las Vegas dozens of times now, but there’s a major part of it that I just don’t get… the game of chance.
Seeing a show and having a great dinner make sense to me. And I’d be lying if I said I never wagered a few bucks on games involving skill and strategy – like poker.
But to risk your money on essentially a random twist of fate? No thanks.
When you step up to the roulette wheel, every choice is as good (or bad) as every other. Press a button on the slot machine and cross your fingers. Where’s the challenge in that?
And yet, they’ve built a city in the desert studded with dozens of colossal palaces that attract more than 42 million visitors a year… most of whom are eager to “lay some money on the line.”
Of course, Wall Street is an even bigger enterprise built on the draw people feel toward gambling.
Once investors or traders put their cash into a stock, there’s little they can do but sit and watch. If that stock goes up, you win. If it goes down, you lose.
You can gain an edge with insight or analysis, but your capital is at the mercy of the markets.
I’d much rather find a “heads I win, tails I win more” strategy for making money in the markets. That’s why I use options to widen the range of possibilities.
In my trading service Retirement Trader, we don’t bet and hope. We change the rules of the game. Instead of sitting down to play by the casino’s rules, we negotiate our own terms… in our favor.
Here’s how it breaks down…
If the stock goes up, we win. But we also win if the stock stays flat.
That makes a tremendous difference in our win rate and returns. Think about all the time and money Wall Street spends trying to pick stocks that will rise. Meanwhile, by selling a few options, we’ve doubled or tripled the universe of profitable outcomes.
We can find stocks that’ll go up. And we can use stocks that, in our view, won’t go down.
We’ve got more advantages. Since we sell options and generate income, we can even be profitable with stocks that fall a small amount.
The range of investments we can use with our option-selling strategy is massive. And we don’t just “buy and hope” that our stocks go up. We use the tools in our toolbox to triple, in a sense, our chances for a profitable outcome.
Were this Las Vegas, we wouldn’t be the gamblers… We’d be the house.
Now here are some of the stories we’re reading…
U.S. stocks have had what can only be called an excellent decade. Here’s a list of companies whose stocks performed the best, with reinvested dividends, from the end of 2009 through Dec. 5…
Booming sales in 2019 bode well for continued popularity in the new year…
“I found myself exhilarated by our comparatively ego-free ancestors, who went to great lengths, and depths, to create some of the world’s most breathtaking art – and didn’t even bother to sign their names.”
Today, people around the globe will feel uneasy about getting out of bed, leaving their homes, or going about their normal daily routines, all because of a superstition. These unfortunate folks suffer from paraskavedekatriaphobia, a common neurosis familiar to us all: the fear of Friday the 13th.
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
December 13, 2019