At Maximum Options, we have one basic rule that encompasses our entire philosophy: Never overpay for trades.
The only surefire way to keep bringing in consistent profits, year after year, is to focus on undervalued options. That way, the odds are on your side and your portfolio will grow at an amazing pace.
By buying an option while it is cheap, you’re allowing much more room for upside than if you “jumped on the bandwagon” once the stock is in the news. I know it can be tempting to make your move after a stock has already been heralded as the next big thing (or a toxic stock to sell now). But by that time, it’s often too late, and the opportunity for 100%, 200% and 300%+ profits has already passed by.
Your best bet for making fat gains is to get in before the crowd, while the option is still cheap. And this highly disciplined approach is what’s served me so well over the years. In fact, I’ve been trading options profitably since the first exchanges opened in 1973.
Just take a look at some of our winners from 2017:
|Transocean call debit spread||+106%|
|TripAdvisor ratio call debit spread||+175%|
|Sibanye Gold Limited calls||+52%|
|iShares MSCI Emerging Markets ETF put debit spread||+77%|
|KLA-Tencor ratio call debit spread||+50%|
|Golden Ocean Group Limited calls||+52%|
|SPDR Gold Trust call debit spread||+66%|
|Valeant Pharmaceuticals ratio call debit spread||+51%|
|United States Oil ETF ratio put debit spread||+200%|
|American Outdoor Brands ratio call debit spread||+400%|
For all of these trades, we paid about $1.00 (or less) — and sold for much more, all within just a few weeks.
Now, that’s not to say that just any cheap option has this kind of profit potential. After all, even the cheapest option can still go lower if it’s a bad trade. So, how do you know if an option is truly undervalued…and not just in the bargain bin for a reason? Well, I leverage my 40 years of experience as a statistician, option coach and software developer to determine just that.
I scan the market regularly using my proprietary system, which then generates a list of trade ideas that offer the best value in the current market. Then, after analyzing each trade idea, I recommend only the best ones to my Maximum Options subscribers.
Sometimes, those trades are single calls and puts or debit spreads, like the ones mentioned above…but other times, we’ll play the opposite role, and use credit spreads and naked option writes.
Unlike a lot of other trades, credit spreads and option writes actually allow you to make money simply by opening the trade. Then all you have to do is hold the position through expiration — and, if all goes as planned, you’ll be taking 100% of that option income to the bank.
That’s exactly what we do month after month at Maximum Options.
|Energy Select SPDR ETF Dec. 15th $66-$56 put credit spread||+100%|
|Freeport-McMoRan Nov. 24th $13 naked put||+100%|
|United Continental Oct. 20th $52.50-$45 put credit spread||+100%|
|Snap Inc. Sept. 22nd $10 naked put||+100%|
|Wal-Mart Aug. 18th $67.50-$60 put credit spread||+100%|
|Cabot Oil & Gas July 21st $20.50 naked put||+100%|
|Yahoo June 23rd $47 naked put||+100%|
|IBM May 19th $150-$140 put credit spread||+100%|
|United Continental Apr. 28th $62 naked put||+100%|
|Caterpillar Mar. 17th $100-$110 call credit spread||+100%|
|iShares MSCI Mexico ETF Feb. 17th $39 naked put||+100%|
|iShares 20+ Year Treasury Bond ETF Jan. 20th $112-$102 put credit spread||+100%|
And that’s just the beginning, if 2017 is any indication: We averaged 10 of these 100% income plays each month — 7 from naked option writes, and 3 from credit spreads. And that’s in both good markets and bad. By using spreads and option writes to bring in a steady stream of option income AND the profits on the more speculative trades, like the calls and puts, your trading portfolio will quickly grow.
It’s this thoughtful, methodical approach to options that has enabled me to build a long history of successful trading. I’m working on new trades right now and invite you to see for yourself how you can enjoy profits like these in your own portfolio.Click here to start your risk-free trial of Maximum Options.