January Portfolio Return – 4.08%

Posted on 19. Jan, 2010 by Founder in Blog

The January portfolio return was once again extremely profitable for our members and marks the 12th consecutive month without ANY losing trades! Again that’s 1 WHOLE YEAR without any losing trades! If you want to start seeing these returns in your own account, SIGN UP HERE FOR A PREMIUM MEMBERSHIP.

Compared to the December portfolio, we had a total return that lower comparatively from December at 4.08% to 5.19%. Clearly we don’t really care if we increase or decrease our monthly returns as long as we hit our 3% profit goal – which we are beating nearly each month. In addition, we showed once again that even in the face of a major market moves higher and extreme volatility, selling options with out P.O.T.S system still produced great profits.

To re-cap this month’s income, let’s look at what we made vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

DIA 108 CALL – $53/$1,221 = 4.34% Return

DIA 110 CALL – $55/$1,351 = 4.07% Return

IWM 66 CALL - $30/$595 = 5.04% Return

IWM 42 PUT – $18/$419 = 4.29% Return

QQQQ 35 PUT – $6/$382 = 1.57% Return

As we said earlier, we did not have to close out any positions this month at a loss. This just goes to show everyone that by writing options, you are basically forcing the indexes to make dramatic moves in a very short time frame. And since we have positions on BOTH sides of the market (Puts and Calls), you are guaranteed to make money on at least one side of the trade every time – or both sides like we do every month.

With regard to TOTAL INCOME and RETURN, the January portfolio produced $162 of total income (double from last month) after investing just $3,968 in margin. That means we saw a total portfolio return of 4.08% this month. As we usually point out, our calculations assume that you enter just 1 (ONE) contract for each trading alert – i.e. a total of 5 contracts for the month. Those members with a higher capital base should be entering multiple contract positions each week.

***Even if you factor in a 1% comission for the month our return would still produce annualized returns of over 35% per year***

Currently we have a fully invested 2010 February income portfolio and are about to begin THIS WEEK building the March income portfolio. The outlook for both of these portfolios is extremely positive right now as we are still writing options far away from the market’s current price.

Investors Intelligence Sentiment Index

Posted on 16. Nov, 2009 by Founder in Blog

Seems the investors intelligence sentiment index is witnessing a bearish low. From the chart you can see that there really are no longer an bearish investors in the market. What this tells us is that everyone is feeling bullish about stocks. And we all know that trading against the herd is always the most profitable.

Investors Intelligence

95% Odds Of Success Trade – DIA Puts

Posted on 27. Jul, 2009 by Founder in Blog

When you write/sell options you want to have the odds of success in your favor – as really with anything you trade or invest in. You want to enter option positions where you ability to profit is overwhelming on your side. For option traders, it’s very easy to find these probabilities – the exchanges give them to you for each strike price based on historical price trends.

DIA

The DIA 76 Puts represent a great trading opportunity with just a 4.86% chance of expiring with a loss. Clearly this would mean that you would be entering the position with a 95% chance of making money. This is better than gambling at the casino! By selling this put you would get the premium of $26 credited immediately to your account and as long as the DIA – which is based on the movement of the DOW JONES – close anywhere above 76 (RED LINE) by expiration, you keep the premium as profit. The markets could move up, down, sideways as you still make money. Cold, hard facts to think about.

Why Isn’t Everyone Using This Strategy?

Posted on 15. Jul, 2009 by Founder in Blog

Actually there are thousands of people using this strategy right now. They are called market makers and hedge fund managers. For example, Warren Buffet uses these exact same strategies in his company. So does Pete Najarian, a panelist on the CNBC show Fast Money along with hundreds of others that trade options for a living. They and thousands of other traders and investors are using options each day to grow and protect their portfolios.