How Options Work—and How to Hedge Portfolios with Options
This FREE Special Report is one of the best investment books on options trading available now
Sometimes I wonder if traders circulate myths about how difficult and expensive it is to trade in options in order to keep all the opportunity and profits to themselves.
It’s a darn shame that so many investors avoid options trading because of those myths. So we at Cabot Wealth have decided to give away our Special Report, How Options Work—and How to Hedge Portfolios with Options. Download it now and start profiting from options trading tomorrow.
The very first thing this Special Report does is explode those myths. Yes, you can learn to trade options. No, it’s not as risky as you think. And yes, you can afford it! So it’s important to us to help investors like you understand something that could protect your portfolio from risk and build wealth in a market you might have thought was out of your league.
How options work: Break down best- and worst-case scenarios and make sure the odds are in your favor
It really is as simple as that, bottom line. Our options trading guru, Jacob Mintz, explains that what makes options so potentially lucrative is that you can make tremendous profits with little capital at risk. Buy options and risk pennies to make dollars!
If that sounds appealing to you, read How Options Work right now! It’s designed to help you …
- Learn how to trade in options safely and confidently
- Protect your portfolio from unnecessary risk
- Profit from a market that is often misunderstood and overlooked
- Diversify your portfolio for better long-term performance
- Avoid the mistakes that can happen in the options market
- Build surprising wealth for yourself and your loved ones
Using strategies like the one mentioned above, you can quickly learn to hedge your portfolio through options trading. And have no fear, because, as I said, much of what you’ve heard about options trading is simply not true.
For instance, did you know that through the magic of puts, you can take advantage of a down market, not just a bull market, with low-risk, high-reward trades? It’s absolutely true. And this Special Report shows you exactly how it works:
You own 1,000 shares of the SPDR S&P 500 ETF (SPY). The truest hedge would be to buy 10 puts against it. If the SPY were to drop below your puts strike price, you could simply exercise your puts, and you would be out of your entire stock position. The upside to this strategy is that you do not cap the potential profit if the SPY price continues to rise.
The full details are in this FREE Special Report. Why not download it right now, and get started trading options?
After you read this guide, you’ll fully understand how options work
That’s just one of many strategies explained in this Special Report. Other concepts outlined here include:
The covered call (also known as a “buy-write”)
- Risk reversal
- Bull put spreads
- Call selling
- Butterfly trade
Then there are strategies for playing earnings with options. This is a bit trickier, but it, too, is explained in detail, including these strategies:
- Bull call spread
- Naked put sale
- Bull put spread
I know it sounds like a foreign language, but this Special Report isn’t written for trading experts – it’s written with the average investor in mind. And you’ll certainly pick up the lingo quickly because everything we do is written in plain, user-friendly language. What’s more, you get specific examples both fictional and from real life to help you envision options trading.
(Plus you get some Frequently Asked Questions to help you get started!)
Consider this example of a Bull Put Spread that Jacob presents:
Selling a put spread, also called a bull put spread, is a short volatility/bullish trade that makes money if the stock goes up, doesn’t move, or doesn’t go down significantly.
Here’s an example using fictional stock XYZ.
XYZ is trading at $95. You could theoretically sell the 85/80 bull put spread for $1. To execute the trade, you would:
Sell the 85 Puts,
Buy the 80 Puts,
For a total credit of $1.
So, you’d make $1, or $100 per spread, if the stock stays above 85 at the spread’s expiration. Essentially, with XYZ trading at 95, as long as XYZ does not trade lower by $10, you will collect the $1 per spread.
Your breakeven on the trade is 84.
If XYZ closes at 80 or below, you will lose $4, or $400 per spread.
If XYZ is trading between 80 and 85 on expiration, you will need to take off the trade before the spread expires, so that you are left with a stock position.
You can use this example as a literal step-by-step guide in making your own Bull Put Spreads!
Why should you trust Cabot Wealth to teach you how options work?
Cabot is unlike any other investing advisor you’ve ever used. We’re not just advisors, we’re personal contacts for your guidance and support. This means our hard-won reputation is expressed in the expertise we’re sharing in this Special Report.
At Cabot, we’re a family of both advisors and investors – many of whom are themselves second generation subscribers. In fact, we’re an actual family here: Our President and Chief Investment Strategist, Tim Lutts, is the son of our company’s founder, another of our analysts is a third-generation member of the family, and our other analysts are all long-term advisors with the company. There are no get-rich-quick folks here at Cabot: Trust the information and guidance that’s in this Special Report because we stake our reputations on it!
That’s why, for example, when this Special Report turns to the sad fact that many investors have found their positions dropping like rocks over the past year, it includes Jacob’s personal, expert guidance for such situations. You’ll read about selling calls, using a “laddered” call selling strategy against these stock positions to lower your cost basis.
Each step is outlined here, so you can understand it on paper and follow it in your actual portfolio. How often do you get advice like this absolutely free?
I urge you to download this Special Report right now. It will take only a half-hour or so of your time for the first read-through, and it will make an enormous difference in your investing approach – and the value of your portfolio.
You certainly have nothing to lose – $0 – and everything to gain. Download it now!
Yours for building wealth,
Publisher, Cabot Wealth Network
PS: Remember, this valuable Special Report is absolutely FREE. You simply can’t make a better investment than that in your portfolio and your overall wealth. Download it now!
PPS: Did you know that, contrary to conventional wisdom, you can trade options on stocks you don’t already own? That’s one of the myths that’s dispelled in this Special Report. An option is a contract that conveys to its holder the right, but not the obligation, to buy (in the case of a call) or sell (in the case of a put) shares of the underlying security at a specified price (the strike price) on or before a given date (expiration day). Now, why not read this Special Report today to continue learning the truth – and beauty – about options trading? You won’t regret it. That’s a promise.