 | | For Quick Profits, Trade Options | | Marc Lichtenfeld, Chief Income Strategist, The Oxford Club | | | | | Editor's Note: Today, Marc reveals how investors can boost their returns quickly and simply: by trading options on the companies or indexes that they're interested in.
Readers of Marc's Closing Bell Profits are well aware of how valuable this strategy can be. Each day, Marc sends out simple instructions for taking advantage of changes in the market.
His proprietary system for trading these options works so well, he's convinced that readers who join him today can earn $130,000 in a single year.
Click here for all the details.
- Mable Buchanan, Assistant Managing Editor
While chatting with a hedge fund manager friend online last week, as we marveled at the continuous new highs in the market, he typed, "Literally no risk owning stocks right now."
Of course he knows there is risk owning stocks - but his statement emphasizes how it seems like the market goes up every day and everyone has a "risk on" mentality.
And over the past year, I've noticed that my readers have become willing to take on more risk. Options have become a popular trading tool, as they offer the ability to put just a little money at risk yet achieve huge gains. | | | For example, someone who wanted to make a short-term bet on Apple (Nasdaq: AAPL) increasing in price could have bought the January $270 calls on December 12 for $6.05 (or $605, as option contracts trade in 100-share blocks).
They could have sold them five days later at $14.50, for a gain of $845 - which would be 140%.
On December 11, a trader could have bought the SPDR S&P 500 ETF Trust (NYSE: SPY) December 20 $315 calls for $2 and sold them for $5 on December 17.
Someone who bought 10 contracts would have turned $2,000 into $5,000 in less than a week.
Buying calls and puts is a great way of taking shots at profits from short-term market moves.
Now, it is important to understand that options can lose value quickly too, particularly if there is not much time left until expiration. So it's a higher-risk, higher-reward strategy.
For those who want to trade for quick profits, there are several ways to get in on the action.
Buy puts or calls on a stock. If you follow a stock and believe you have a strong indication of its direction, you can buy options on the individual stock.
Buy puts or calls on an index or exchange-traded fund (ETF). If you want to bet on or against the market or a sector rather than an individual stock, you can buy options on the S&P 500, the Nasdaq, the Russell 2000, biotech indexes, semiconductor indexes, etc. | | | | Bill O'Reilly's Wild Money Secret In a tell-all video, Bill O'Reilly reveals the shocking way YOU can retire with a seven-figure nest egg. | | | Buy puts or calls on volatility. Not sure which direction stocks are going to go, but think you have a feel for how volatile the markets will get?
You can buy options on volatility through the CBOE Market Volatility Index (VIX) or the iPath Series B S&P 500 VIX Short-Term Futures ETN (CBOE: VXX), which is an exchange-traded note (ETN) based on VIX futures.
If you think the markets will get more volatile, you can buy calls on either. If you think things will get calmer, buy puts. And it doesn't matter whether the market goes up or down. What matters is the amount of volatility.
For traders who crave action and quick profits, look at options with near-term expiration dates in order to keep costs low.
Again, buying puts and calls carries a higher degree of risk. If you can handle that risk, the potential rewards and speed of those rewards are hard to match with any other type of trade.
How do you like to trade options? Tell us in the comments section.
Good investing,
Marc
P.S. Whether you're a veteran or novice at buying calls and puts, if you're interested in options and haven't seen my new presentation on the last ticker symbol you'll ever need, you need to check it out.
My Closing Bell Profits system allows Members to profit from the market's "End-of-Day Surge" - and earn as much as $130,000 in a single year.
Click here to learn more. | | | | | | "My Brain Is Operating at Its Highest Level!" For years, Adam Kearns struggled with an aging brain. Then the software sales executive discovered the powerful combination of nutrients in the natural memory-sharpening breakthrough recommended by one of America's top doctors.
After just four days*, he reports online, "My thoughts were clear. My mental energy levels stayed up... I feel like my brain is operating at its highest level. This is a lifesaver!"*
If your brain isn't as fast as it used to be... even by a little bit... then you need to see THIS now.
*Results not typical | | | | - Wealthy Retirement Is Proud to Support - | | | | | | | | | | Do You Own ANY 5G Stocks?
 CNN calls 5G "the lifeblood of the new economy."
If you don't invest now, you'll regret it later.
Click here for details on the top 5G stock... | | | | | |
The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
No comments:
Post a Comment