How To Exploit A "Computer Bug" In The Options Market

PLUS: Last chance to save 80% and learn the secret to how Bernie is able to score winner after winner.
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Schaeffer's Logo

Dear Trader,

It's Katie here.

Pop quiz: can you name this formula?

Don't worry - it won't be on the final exam :)

All you really need to know is this:

This equation is the key to Bernie Schaeffer's winning options trades that continue to roll in, month after month, like clockwork.

Trades like:

  • 200% returns on Beyond Meat calls,
  • 102% returns on Las Vegas Sands Puts
  • 100% returns on Fastly calls

Each one of these happened in a 5-day window just a few short weeks ago.

Now maybe you're thinking that Bernie uses a sophisticated mathematical model to get trade ideas.

Or that he has some fancy artificial intelligence tool that spits out winners.

But that's not it at all.

In fact, it's exactly the opposite.

Let me explain.

The formula above is called the Black-Scholes model.

It was developed by a couple of PhDs to derive the theoretically "correct" price for options contracts at any point in time.

And here's the dirty little secret:

When you make an options trade, the person on the other end (selling you the contract or vice versa) is not a "person" at all.

It is most likely a computer running the Black-Scholes model, or something close to it.

That's right, a huge amount of options trading activity is now run by lines of computer code rather than grizzled investment pros.

And here's where Bernie comes in:

Our CEO, Bernie Schaeffer, has been trading options for over 40 years.

He's seen markets go up, markets go down.

And he's had a front row seat at the computerized trading boom of recent years.

But instead of following the herd... he bet against it.

You see, Bernie understands these models inside and out.

And while it may look complex, it really boils down to a few elements.

The most important of these is time - that is - how long until the options expire.

Because options prices are based on how fast prices change over time, these models make the logical (but not always correct) assumption that less time before expiration means less chance for prices to move.

This causes certain options contracts to get incredibly cheap in the days before they expire -- in the final five trading sessions to be exact.

When prices get this low, the slightest bit of news ... a surprise earnings report, a political bombshell, or a COVID headline can spook the market.

And when this happens, the market overreacts.

This can send the price of the options contracts (the ones that Bernie has picked up on the cheap) soaring.

Often, this works out to double or triple digit trading wins in this final week before options expiration.

Here are some of our recent trades, along with how long each one took:

 

Security

Return

Holding Period

(trading days)

AMD Inc. Calls

74.12%

5 days

Las Vegas Sands Puts

101.92%

5 days

Fastly Inc. Calls

100%

1 day

DraftKings Inc. Calls

100%

3 days

Beyond Meat Calls

200%

2 days

Yum! Brands Puts

-90.32%

4 days

 

As you can see, not every one of these trades was a winner.

That is just not realistic.

But blockbuster gains like these only come from betting against the heard.

From zigging while all the computer bots are zagging.

Here's an example:

Let's say you were already a subscriber and took our recent trade on Las Vegas Sands.

Over your morning coffee on Monday 9/28, you purchased put options on struggling casino operator Las Vegas Sands Inc.

Per Bernie's recommendation, you entered the trade when contracts were going for $208 each.

By Friday, your options had more than doubled in value, allowing you to cash out EACH contract for a 101.92% profit.

If you had bought 10 contracts, you'd be showing a profit in your trading account of $2,120.

If you bought 20 contracts, you'd have $4,240 - all for just a handful of minutes of work over a holding period of 5 days.

And this is just one trade!

The reason this works is that Bernie has figured out how to exploit the Achilles heel of the options market:

...its blind faith that computers can figure out all the quirks of human behavior.

So if you're ready to see for yourself how this works, I've got great news:

Here's the deal:

Every Sunday before the first Friday of each month, Bernie sends out six trades to subscribers of Weekly Options Countdown.

Each trade has the potential to double or even triple your money in five days or less.

All you need to do is open your brokerage account for a few minutes each month to put on the trades.

Then you hit sell when the contracts reach our recommended "sell zone" price.

It requires no technical expertise, takes just a few minutes per month, and requires zero risky margin trading.

And you don't need to spend your time glued to CNBC or, even worse, trolling the online forums looking for trades.

You get Bernie's top ideas sent to you each month.

If you were surfing the internet, landed on our website and decided to purchase Weekly Options Countdown, you would pay $1,495 per year.

But as part of our Black Fridays sale you are not going to pay anywhere close to that.

As we've already seen, a single winning trade can net you $2,120, $4,240, or more in pure profit.

But when you act now, you will pay just $295.

PLUS we are going to upgrade your subscription to LIFETIME STATUS FOR FREE.

This means that you will get month, after month of Bernie's blockbuster trades sent to your email on autopilot - FOR LIFE.

Your subscription will never expire.

You will only pay a one-time fee of $295.

This is the best deal we have ever offered for this service and I do not know if we will ever do it again.

Look, I know there's a lot going on.

But your first trades are going out on Sunday evening.

So I need you to stop what you're doing and click this big orange button below.

Act Now

It will take you to our checkout page where you can grab your subscription and the first of your lifetime stream of Weekly Options Countdown trades delivered via email each month.

Once you're in, you will have a steady stream of 2x, 3x, trades rolling into your inbox on autopilot for life.

I look forward to toasting your first wins on Friday.

Cheers,

Katie Schaeffer
COO
Schaeffer's Investment Research
service@sir-inc.com
http://www.schaeffersresearch.com
1-800-448-2080
1-513-589-3800 International

Divider Bar

Dear Trader,

In a moment I'm going to unlock the most generous Black Friday deal we've ever offered.

But first, a true story:

Just a few days back, a trade sent to subscribers of Weekly Options Countdown turned an initial investment of $639 into $1,917.

...in two days.

Here's how it went down:

On Monday September 28, our subscribers opened their email.

After reading Bernie's trades, they logged into their brokerage and bought call options on Beyond Meat.

The whole process took about 4 minutes.

At the time, each option contract was trading for $639.

By Wednesday September 30, the price of the underlying stock had moved from $151.30 a share to $166.24, just under a 10% gain.

But - because each contract allows you to control 100 shares of the underlying stock - this small move caused the options to TRIPLE in value.

At this point, our readers had closed out their positions for $1,917.

Of course, the gains were even bigger if they had sized up the trade.

Three contracts would be a profit of $3,834.

Seven contracts would be a profit of $8,946.

All in just two days.

And that was just one trade.

Each month, on the Sunday before the first Friday's options expiration, our Weekly Options Countdown subscribers get 6 trades.

How have these other recent trades done?

 

Security

Return

Holding Period

(trading days)

AMD Inc. Calls

74.12%

5 days

Las Vegas Sands Puts

101.92%

5 days

Fastly Inc. Calls

100%

1 day

DraftKings Inc. Calls

100%

3 days

Beyond Meat Calls

200%

2 days

Yum! Brands Puts

-90.32%

4 days

 

I know returns like this seem crazy.

Maybe even impossible.

But read on, because I am going to explain exactly how it works...

And by the way, Happy Thanksgiving :)

This is Katie Schaeffer.

I'm the COO of Schaeffer's Investment Research.

My job is to connect you with trades that can skyrocket your investing wins.

We do this using an unusual strategy Bernie Schaeffer has developed in his 40 years trading options.

And when you grab our special Black Friday Earlybird Offer (see below), you will get access to our profit-packed trades for pennies on the dollar.

PLUS we are going to include a special upgrade that we may never offer again.

I will get to all that in a moment.

But first, let me explain exactly:

HOW TO EXPLOIT A "COMPUTER BUG" IN THE OPTIONS MARKET
TO MAKE 2-3X YOUR MONEY IN 5 DAYS OR LESS

If you're on our email list, you probably already know how options work.

So I'm going to skip ahead some.

Our system is based on exploiting a loophole that is "hard-wired" into the options market. Let me explain:

Options trading is highly computerized.

When you trade options, the person on the other end is most likely not a person at all.

It's probably a computer.

... this computer runs a formula to calculate the "correct" price for each contract.

The equation (known as Black-Scholes) is PhD-level stuff.

But for our purposes, all we need to know is this:

These options-trading robots run my making assumptions.

One thing they assume is that less time left for the underlying share price to move means less chance for volatility.

This causes prices to drop as we get near options expiry.

But here's the catch...

What these computer models do not (and cannot) predict
is a sudden spike in volatility in the days before options expiry.

This can be caused by an unexpected event:

... like surprise COVID-19 news

... or a shock election lawsuit

... or a sudden military conflict

In short, any of the "black swan" events that are happening like clockwork in 2020!

And here is where it gets really good.

When one of these events happens and a volatility jump occurs near options expiration, you have a chance to score huge, quick wins.

This is because you can scoop up expiring options "on sale" -- often for pennies on the dollar.

Then - when volatility spikes - you can flip them back into the market for a quick 2X, 3X profit -- or more.

What this means is that the topsy-turvy news cycle of 2020 is giving human traders an even bigger edge over the computerized bots.

Which allows us to beat the pants off their models and formulas!

This strategy has two other benefits:

First, you are only "in the market" for a handful of days each month -- usually less than four.

The rest of the time, you are sitting comfortably in cash - immune to the wild swings of Mr. Market.

Second, this strategy uses no leverage or margin trading whatsoever.

We're only doing plain vanilla buys of puts and calls.

This means you can never lose more than the premium you invest to buy each contract.

Your downside is capped, but you still enjoy the unlimited upside that comes from owning call options.

Heads, you score eye-popping 2x or 3x gains.

Tails, you don't lose much.

Without any further ado, I'd like to introduce our Black Friday Earlybird sale where you can:

GRAB OUR BEST DEAL EVER
ON A LIFETIME SUPPLY OF ROCKET-FUEL OPTIONS TRADES

On the Sunday before the first Friday of each month, we send out six trades to our Weekly Options Countdown subscribers.

These are simple buys of puts and calls.

No straddles, collars, iron butterflies, or any other fancy stuff that you need a PhD in finance to figure out.

No margin is needed.

Each trade comes with:

  • Entry Price Points: so you won't overpay by a single cent
  • Exact Sell Instructions: so you never have to agonize over when to exit your trade
  • Up to 200% Profit Target Per Trade: We're targeting quick wins here, not long term plays.
  • Sub 5-Day Holding Period: So you never stay exposed to the market a moment longer than necessary
  • Charts & Analysis: So you can get in Bernie's head and understand the logic behind each trade

Researching each one of these trades takes the team dozens or hundreds of hours.

We pick through thousands of possible trade ideas each month.

Doing technical analysis, calculating the "Greeks" for each position (Delta, Gamma, Theta, and so on)

And we're constantly scanning the news for "black swans" that the computer models are incapable of predicting.

...these are the "X-factor" volatility events that can send each trade soaring.

And we do that for six trades each month of the year.

Given the extreme profit potential, and the fact that you get six of these trades each month, we think $1,495 per year is an extremely fair price for Weekly Options Countdown.

This is the price that regular visitors to our website pay for the service.

...but this is not an ordinary week.

We are heading into Black Friday.

That's why I've convinced Bernie to green-light our most generous offer yet on Weekly Options Countdown.

Like I said, the normal price is $1,495 per year.

And we've already seen how you could have scored $1,917 from a single trade over two days last month.

But when you click the link below, you will lock in your subscription for a single payment of $295.

PLUS - we are going to upgrade your subscription to LIFETIME STATUS.

That means your subscription will never expire.

We've already seen how a single winning trade can pay for your subscription many times over.

But, when you sign up now, you will get a never-ending stream of these trades (six per month) each targeting 2X-3X gains.

For life.

On autopilot.

You will never be billed again for this product, and your subscription will never expire.

When you click on the big orange button below, you will go to our order page to make your one-time payment.

Act Now!

The only catch is you need to act now to get this deal.

We may never offer this again and there are just a few short days until your trades go out.

It can take a bit of time to get your trading account set up, especially if you haven't traded options before.

So stop what you are doing now, click this link, and check out on our order page.

When you make your one-time-only payment of $295, we will rush you your first six trades as soon as they are released on Sunday, November 29.

Once you're all set up, you will receive your steady stream of Bernie's best options trades, each month, for life!

Wishing you and yours a safe and restful Thanksgiving, and I look forward to seeing you inside.

Cheers,

Katie Schaeffer
COO
Schaeffer's Investment Research
service@sir-inc.com
http://www.schaeffersresearch.com
1-800-448-2080
1-513-589-3800 International

PS: I just spoke with Bernie. Let's just say, he thinks our subscribers are going to be pleasantly surprised at the picks for this month. I will explain more later...

PPS: Here's that link again. But if you prefer to do business by phone you can always call us at 1-800-448-2080 ext. 1250

5151 Pfeiffer Rd
Cincinnati, OH 45242

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Although there is significant profit potential associated with buying options, there is also the risk of losing one's entire investment in any individual trade. In any option buying approach, it is expected that losing trades will be more numerous than winning trades. The goal is for the average gain to be significantly greater than the average loss so that the bottom line is profitable. Prior to purchase, ensure that you have a broker that allows the trading of options and that you are approved to trade options.

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