We use options to invest in undervalued companies that have attractive growth potential--with the goal of generating 50%+ annual returns.
We prefer options rather than outright stock purchases because they give us the opportunity for gains with much less investment at risk. Long options with expirations two to six months out give our trades time to work. And, we generate additional profits over the life of the trade by making tactical adjustments.
One of our favorite adjustments is to sell a nearer-dated option against our initial long position, creating a diagonal spread. This trade structure enables us to profit from more rapid time decay on nearer-dated options to to reduce risk by taking money off the table and increase overall profit potential. Please see our strategy page for more details on how we use diagonal spreads and other trade structures.
Each month we send out an email alert containing a new trade, and we send out alerts as needed with updates/adjustments to prior trades that are still open.
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