Option Strangle Magic » Profit

10 Strategies: an Overview

admin — Wed, 13 Jan 2010 09:41:38 +0000

Fast Profits in Hard Times will teach you everything you need to know and give you specific resources (websites, toll-free numbers, etc) to implement the following 10 strategies:

1. Invest in Tax Liens

Buy liens placed on properties by municipalities because owners have fallen behind in paying their property taxes. Then, when the property owners pay what they owe to the municipalities, receive not only a return of your principal but also a penalty interest rate set by the municipality, typically in the range of 8% to 25%. If the property owner defaults altogether, take possession of the property for a fraction of its real value: the sum of the back taxes you’ve already advanced. You can then sell the property, even a bit below its market value, for a huge profit.

2. Buy Real Estate Below Market Value

Identify real estate sellers who are willing to accept less than their property’s full market value for a variety of reasons. Then resell the property immediately at a profit, rehab it, rent it out, or even live in it yourself, all with the built-in financial cushion of having purchased the property for far less than it is truly worth.

3. Invest in Income Trusts and Master Limited Partnerships

Earn high yields of 8% to 13% by investing in trusts that extract or transport natural resources such as oil, gas, coal, or timber. Such trusts pass a large amount of their earnings directly to investors through monthly dividends. Depending on the trust or MLP, some of the distributions may be considered a tax-free return of capital, boosting your after-tax return even more.

4. Invest in High-Yield Stocks

Invest in stocks with stable businesses that pay dividend yields of 5% to 15% or more. Some industries offering such high yields include electric utilities, oil tankers, and real estate investment trusts, and several broad-based closed-end mutual funds. This is a way to make your capital compound with very little risk when you reinvest the dividends or to boost the income you live on if you take the dividends in cash.

5. Enroll in Dividend Reinvestment Plans

Invest in companies that offer Dividend Reinvestment Plans, known as DRIPS, which allow you to use dividends to purchase shares directly and thus bypass brokerage fees. Automatically reinvest dividends back into further stock purchases, thereby compounding your portfolio’s assets over time. Several companies offer discount DRIPS, meaning that you get an additional 2% to 5% bonus every time you reinvest dividends, compounding your return even more at no additional cost to you. So if you get $100 in dividends, you receive $105 worth of stock when you enroll in a 5% discount DRIP.

6. Buy High-Yielding Bonds

Buy bonds of companies, municipalities, or foreign governments, either individually or through open and closed-end funds, which pay yields of 5% to 12%. In addition to the high rate of interest, you will receive the return of your principal when the bond matures. There are many types of hybrid bonds available in today’s market with catchy names like STRIDES, ELKS, MITTS and HITS which offer guaranteed return of principal, high yields and potential bonuses based on how the underlying instruments perform.

7. Use Put and Call Options

Rather than buying and selling actual stocks or stock indexes, you can, for a fraction of the cost, trade rights to buy and sell those stocks or stock indexes at specific prices within a specified period of time up to two years into the future. This form of leveraged trading allows for far greater gains but also runs the risk of far greater losses than normal stock investing. It is therefore imperative to follow careful strategies that limit risk while optimizing profits.

8. Profit from Foreign Exchange Trading

Trade one currency against another currency, on the expectation that the currency you’ve bought will gain in value relative to the one you sold. This provides a convenient way to profit from the decline of the US dollar against most major foreign currencies.

9. Invest in and Broker Cash Flow Opportunities

Identify people and/or businesses willing to sell future receivables at a significant discount in exchange for ready cash. Then either buy the payments yourself or serve as a broker for a third party, typically a large financial company, which provides the funds. For example, you can broker or buy cash flows from lottery winners, lawsuit winners, mortgage notes or reimbursements due to a doctor’s office from insurance companies or Medicare.

10. Set Up Passive Income Strategies

Set up some kind of system that needs minimal ongoing management but continues to produce significant cash flow far into the future. A few examples include:

placing vending machines in high-traffic locations to collect passive income whenever customers make purchases

placing ATMs or point-of-sale (credit/debit/card swipe) machines in high sales volume locations to earn small fees paid by merchants whenever customers use the machines

Buy high-quality timeshares in desirable locations and seasons and rent them out over the internet to earn substantial rental income

The above is an excerpt from the book Fast Profits in Hard Times

by Jordan E. Goodman

Published by Business Plus; January 2008;$23.99US/$27.99CAN; 978-0-446-58156-1

Author

Jordan E. Goodman is a former Money magazine journalist and the author of several bestselling books, including Everyone’s Money Book, The Dictionary of Finance and Investment Terms, and Master Your Money Type. He provides financial advice to millions of people each month through regular appearances on radio call-in and TV shows and through his seminars to corporate, association, and university audiences. He has been a regular contributor to NBC News at Sunrise, The Marketplace Morning Report on Public Radio, and many other shows.

Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profit (Hardcover)

admin — Tue, 05 Jan 2010 15:28:25 +0000

Review

“A must-read for individuals who are serious about trading options” — James Bittman, author, Trading Options as a Professional”Dan’s book is a primer for options aficionados. Without bogging you down with super-heavy math, he walks you through the key principles and shows you what matters the most to your trading portfolio.” — Fari Hamzei, founder, Hamzei Analytics, LLC

Review

“A must-read for individuals who are serious about trading options.”—James Bittman, author, “Trading Options as a Professional”“Dan’s book is a primer for options aficionados. Without bogging you downwith super-heavy math, he walks you through the key principles and shows youwhat matters the most to your trading portfolio.”—Fari Hamzei, founder, Hamzei Analytics, LLC

See all Editorial Reviews
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Option Profits Success System Review

admin — Wed, 09 Dec 2009 09:24:18 +0000

When you are first starting out in any kind of venture it can be very intimidating, and with trading this is no different. If anything it can be even more daunting because you have to invest your own money and at times the financial markets can be very confusing. Options’ trading is one such type where your investments can bring you great profits but where there is also a lot of risk involved. The best idea you can have is to enrol onto an Options trading course in order to educated yourself and there are many out there, although the best I have come across is A.J Brown’s Option Profits Success System. When you decide that trading options is the way forward for you and your trading career, you must also make sure that you really have the right knowledge as well as the best trading strategies possible, for without these, you are not giving yourself much of a chance. This is why it is so important to get as much information as you can from others who have been in your position. AJ Brown, for example started off as a rookie with no more then $5000 to invest and because he had the right trading strategies ended up turning this investment into nearly a million in 30 months. The first step to options trading is of course, knowing exactly what an option is. An option is a contract where the buyer is given a right to buy or sell an underlying asset (like a stock) at a certain price before a specific date; however, they are under no obligation to do so. In this way, an option is just like a stock or a bond, where there is a binding contract where terms and properties are strictly defined. The next step is to be able to identify the two different types of Options, which are Call Options and Put Options. Trading Trainer Option Profits Success System not only provides you with all kinds of useful facts like these but will give you the low down on all kinds of strategies that will help you to become the successful options trader you desire. You should know that a Call Option is a contract that will give the buyer the right to buy up stock shares at a certain price, otherwise known as a strike price, on or before a specific date expires. Whereas a Put Option is where the owner has the right to sell a certain number of stock shares at a specific price, again on or before a specific dates expires. When you have paid a certain amount for an option, this is known as the premium which can then be split up into time value and intrinsic value. This is just giving you a beginner’s insight into options trading but should you (and believe me you should) want or need more information then you should look no further then A.J Brown and his Trading Trainer community. Here you will find countless facts that can only go towards helping you make you trading career more of a success, not to mention the fact of A.J Brown’s reputation as an excellent mentor and teacher. One of the best pieces of advice that you can be given is to do research and more research before enrolling or making a purchase of any kind of options trading product, whether or not this research involves reading many Option Profits Success System reviews or reading countless profiles on A.J Brown and his previous products.What Do You Get?

This may sound like you are getting rather a lot, but believe me, it is all vital for giving you the world class education that you need to trade stock options. As a step by step guide, the Option Profits Success System will get you to the desired place where you know, in detail, more about trading stock options then the majority of other traders out there. This home study course will put you well on course to a successful and long term career in stock option trading – Guaranteed!