The Power of Real
One of the greatest characteristics of our educational process—meaning delivering “productive knowledge”— is that we deliver real deals, real trades, real risks and real profits. This posting will be updated frequently so you will see how we can put your money to work.
We primarily work on Writing Covered Calls. Right now JCP, AMD, SUNE, and several others are working.
Let me give an example. JC Penny’s (JCP) is $6.70. That’s down a little, but Christmas is coming. Let’s buy a thousand shares. The cost would be $6.70 X 1,000, or $6,700. You only have to put up half of this money as your broker will loan you the other half. That would be $3,350. Let’s see what $3,350 can make. In the bank we’d have to get a magnifying glass to see the return. Snooze.
But how about this? We use a “hidden secret” strategy in the stock market. It’s one we work on—to get the word out. The January 15th 2016 call options are 35¢ to sell. No, we’re not going to just make 35¢. That’s about what you would receive at the bank. It’s 35¢ times our 1,000 shares, or $350. That’s cash in the next business day.
Here’s the point: The market is willing to give you $350 now to lock down the price of your stock. That’s $350 you can leave alone or take out to pay some bills. It’s your money. And just think: If your stock goes up to $7 or ab0ve, and you actually sell the stock for $7, you’d make another 30¢ in gains, or $300. Your total would be $650.
I’ll pause while you think of those numbers. Your $3,350 did a yeoman’s job. And what if you could do this every month? And if you built your cash available to $5,000 or $10,000, and you could do 4 to 8 of these trades. Yes, it would be time for retirement, thank you very much.
STOCK SPLITS: There are also several stocks doing stock splits right now. Hormel, UA, Under Armour. Netflix just did a 7:1 stock split (last summer), as well as Ross Stores, Kroger, Sketchers and many more just happened or are about to happen. Make sure you read STOCK SPLITS by Wade Cook.
TDT: Right now, along with your TDT membership, you get TRAIL, or Trading Research And Information Library. And the $495 (on sale price), mega course: PAID TO TRADE is also FREE.
It’s quite a helpful, pertinent and useful package.
REMEMBER: Don’t spend the principal, spend the profits.