Universal Investment Strategies Blog

Tuesday, July 17, 2018

2 Unique Strategies designed to win!

I don't know about you, but I'm sick of trading "gurus" acting like trading is really easy. It’s not!

And it's an insult to struggling traders who are smart and work hard but haven't found success yet (especially since the guru saying his method is easy probably isn't even a real trader).

The reality is that thoughtful, hard-working retail traders are struggling because trading is hard.

You know that- no matter how much slick marketing they throw at you.

And the reason it's hard?

It's complex.

How many times have you got the direction of the market completely right and still lost money? How often have you learned a technique that works for a bit and then starts losing you money when the market changes?

But one professional day trader has studied this market complexity for years and ingeniously narrowed things down to the 2 unique day trading techniques that work in every possible market condition.

The techniques are not complex in themselves, but they're not overly simplistic either. You need to study and practice them to use them right, but once you do your trading can take off beyond your wildest dreams. Want to know what those two unique strategies are?

Long/Bull Call Spread

A long/Bull call spread gives you the right to buy stock at strike price A and obligates you to sell the stock at strike price B if assigned.

This strategy is an alternative to buying a long call Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy at strike A. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.

Because you’re both buying and selling a call, the potential effect of a decrease in implied volatility will be somewhat neutralized.

The maximum value of a long call spread is usually achieved when it’s close to expiration. If you choose close your position prior to expiration, you’ll want as little time value as possible remaining on the call you sold. You may wish to consider buying a shorter-term long call spread, e.g. 30-45 days from expiration.

Long Put Spread

A long put spread gives you the right to sell stock at strike price B and obligates you to buy stock at strike price A if assigned.

This strategy is an alternative to buying a long put Selling a cheaper put with strike A helps to offset the cost of the put you buy with strike B. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.

When implied volatility is unusually high (e.g., around earnings) consider a long put spread as an alternative to merely buying a put alone. Because you’re both buying and selling a put, the potential effect of a decrease in implied volatility will be somewhat neutralized.

The maximum value of a long put spread is usually achieved when it’s close to expiration. If you choose to close your position prior to expiration. You’ll want as little time value as possible remaining on the put you sold. You may wish to consider buying a shorter-term long put spread, e.g., 30-45 days from expiration.

Call Now to learn how to execute these strategies and many more!

Universal Investment Strategies

855-564-4425

How to Trade for A Living!

How does someone go from just $8 in their pocket to producing 7 figure income in their personal account?
It’s an amazing story but it all boils down to one simple concept:

Doing the opposite of what everyone else is doing.
In this case, it’s his dynamic strategy for selling options (the right way). We call it the Fig Leaf!

You see, most traders buy options and lose money.
And, even the ones who sell options can’t make it work…

But, you’re in luck! Read below as we breakdown one of our unique strategies.

Fig Leaf aka Leveraged Covered Call or Leaps Diagonal Spread

Buying the Leaps gives you the right to buy the stock at strike A mentioned below Selling the call at strike B mentioned below and obligates you to sell the stock at that strike price if you’re assigned.

This strategy acts like a covered call but uses the LEAPS call as a surrogate for owning the stock. Though the two plays are similar, managing options with two different expiration dates makes a leveraged covered call a little trickier to run than a regular covered call.

The goal here is to purchase a LEAPS call that will see price changes similar to the stock. So look for a call with a delta of .80 or more. As a starting point, when searching for an appropriate delta, check options that are at least 20% in-the-money. But for a particularly volatile stock, you may need to go deeper in the money to find the delta you’re looking for.

Some investors favor this strategy over a covered call because you don’t have to put up all the capital to buy the stock. That means the premium you receive for selling the call will represent a higher percentage of your initial investment than if you bought the stock outright. In other words, the potential return is leveraged.

Of course, there are additional risks to keep in mind as well: LEAPS, unlike stock, eventually expire. And when they do, it’s possible that you could lose the entire value of your initial investment.

Unlike a covered call (where you typically wouldn’t mind being assigned on the short option), when running a fig leaf you don’t want to be assigned on the short call because you don’t actually own the stock yet. You only own the right to buy the stock at strike A.

You wouldn’t want to exercise the long LEAPS call to buy the stock because of all the time value you’d give up. Instead, you hope your short call will expire out of the money so you can sell another, and then another, and then another until the long LEAPS call expires.

Some investors choose to run this strategy on an expensive stock that they would like to trade, but don’t want to spend the capital to buy at least 100 shares.

If the stock price exceeds the strike price of the short option before expiration, you might want to consider closing out the entire position. If the strategy was implemented correctly, you should see a profit in such a case.

If you do get assigned on the short call, don’t make the mistake of exercising the LEAPS call. Sell the LEAPS call on the open market so you’ll capture the time value (if there’s any remaining) along with the intrinsic value. Simultaneously buy the stock to cover your newly created short stock position. This is a situation when it pays to have a broker who really understands options. So give us a call at Ally Invest and we’ll help you through the process.

Want to learn more about how to implement this strategy?

Call Now!

Universal Investment Strategies

855-564-4425

This strategy can help you Trade for Income!

Tell me if any of these sound familiar...

"My family's medical bills are destroying my retirement savings."

"I'm worried this market could crash at any moment, but I can't afford to miss out on any gains."

"What happens if we run out of money in retirement?"

I hear concerns like these on an almost daily basis from people all across the country...

And I knew there had to be a solution for the vast majority of people who have money set aside... but worry about outliving it.

So I decided to figure out how I could help regular Americans across the country grow their wealth FASTER and safer than they ever thought possible!

Ive outlined below an Options strategy that could potentially help you triple your money... and do it without taking any sort of crazy risks.

Cash Secured Put

Selling the put obligates you to buy stock at a designated strike price if the option is assigned.

In this instance, you’re selling the put with the intention of buying the stock after the put is assigned. When running this strategy, you may wish to consider selling the put slightly out of the money. If you do so, you’re hoping that the stock will make a bearish move, dip below the strike price, and stay there. That way the put will be assigned and you’ll end up owning the stock. Naturally, you’ll want the stock to rise in the long-term.

The premium received for the put you sell will lower the cost basis on the stock you want to buy. If the stock doesn’t make a bearish move by expiration, you still keep the premium for selling the put. That’s sort of nice, because it’s one of the few instances when you can profit by being wrong.

Don’t go overboard with the leverage you can get when selling puts. A general rule of thumb is this: If you’re used to buying 100 shares of stock per trade, sell one put contract (1 contract = 100 shares). If you’re comfortable buying 200 shares, sell two put contracts, and so on.

Want to know how to execute this strategy? Call now!

Sincerely,

Universal Investment Strategies

" Don't Buy Any Trading Program Or Meet With A Financial Planner

Till You Hear This Free Recorded Message >>> Call 888-657-8466"

A No BS incoming earning strategy!

As traders, we want the best and most actionable ideas for right now.

No fluff...

No reading through 100 pages of an eBook to get one semi-helpful concept...

Here’s one freebie trading strategy below that is guaranteed to give you an ROI if implemented properly in a volatile market.

Long Put

A long put gives you the right to sell the underlying stock at a specific strike price. If there were no such thing as puts, the only way to benefit from a downward movement in the market would be to sell stock short. The problem with shorting stock is you’re exposed to theoretically unlimited risk if the stock price rises.

But when you use puts as an alternative to short stock, your risk is limited to the cost of the option contracts. If the stock goes up (the worst-case scenario) you don’t have to deliver shares as you would with short stock. You simply allow your puts to expire worthless or sell them to close your position (if they’re still worth anything).

But be careful, especially with short-term out of the money puts. If you buy too many option contracts, you are actually increasing your risk. Options may expire worthless and you can lose your entire investment.

Puts can also be used to help protect the value of stocks you already own. These are called protective puts.

Don’t go overboard with the leverage you can get when buying puts. A general rule of thumb is this: If you’re used to selling 100 shares of stock short per trade, buy one put contract (1 contract = 100 shares). If you’re comfortable selling 200 shares short, buy two put contracts, and so on.

You may wish to consider buying an in the money put, since it’s likely to have a greater delta (that is, changes in the option’s value will correspond more closely with any change in the stock price). Try looking for a delta of -.80 or greater if possible. In-the-money options are more expensive because they have intrinsic value, but you get what you pay for.

After the strategy is established, you want implied volatility to increase. It will increase the value of the option you bought, and also reflects an increased possibility of a price swing without regard for direction (but you’ll hope the direction is down).

Call Now to learn more!

Sincerely,

Universal Investment Strategies

855-564-4425

Want to learn this Homerun Options Strategy?

Hey Options Aficionados,

Do you want to consistently see ROIs in your trading?

What will consistent profits do for you and your family financially?

Can you see how your trading can improve with the right strategies in your arsenal?

This is one of my favorite options strategies because it gives me high probability trades all year round and in all market condition so I can consistently profit from options.

Long Call

A long call gives you the right to buy the underlying stock at a certain strike price.

Calls may be used as an alternative to buying stock outright. You can profit if the stock rises, without taking on all of the downside risk that would result from owning the stock. It is also possible to gain leverage over a greater number of shares than you could afford to buy outright because calls are always less expensive than the stock itself.

But be careful, especially with short-term out of money calls. If you buy too many option contracts, you are actually increasing your risk. Options may expire worthless and you can lose your entire investment, whereas if you own the stock it will usually still be worth something. (Except for certain banking stocks that we won’t name)

Don’t go overboard with the leverage you can get when buying calls. A general rule of thumb is this: If you’re used to buying 100 shares of stock per trade, buy one option contract (1 contract = 100 shares). If you’re comfortable buying 200 shares, buy two option contracts, and so on.

If you do purchase a call, you may wish to consider buying the contract in the money , since it’s likely to have a larger delta (that is, changes in the option’s value will correspond more closely with any change in the stock price). Try looking for a delta of .80 or greater if possible. In-the-money options are more expensive because they have intrinsic value, but you get what you pay for.

If you are struggling to make money trading options, or if you are having trouble finding a steady stream of high probability setups to trade, or if you know that all you need are a few aggressive tried-and-true strategies to get you over that hump, then UIS is for you.

What are you waiting for?

Sign up Now!

Universal Investment Strategies

" Don't Buy Any Trading Program Or Meet With A Financial Planner

Till You Hear This Free Recorded Message >>> Call 888-657-8466"