Crash of 2008: 50% gain on Gold Puts proves you still can make money in this market
Today's Financial News - Posted November 13, 2008
This morning, Andy Snyder went ahead and harvested the first batch of the gains we’re planning to bring in from our Gold Hedge: “I want you to sell your January Puts for a gain of about 50% and use the principal to buy this new set of put options to cash in on further declines.” There’s more where that came from… if you have the stomach for it!
by J. Christoph Amberger
Baltimore — (TFN): “You’re a Bull in the biggest stock market wipeout in history,” asked a new HSC subscriber this morning. “By Gosh and people
pay for this? WOW!”
I had to chuckle, looking at some of the perma-Bears’ mining, resource, gold, energy, currency and green technology protfolios: Certainly, bears and bulls have little to bellow and plenty to growl about these days. This market has done a number on the irrationally exuberant and chronically dyspeptic alike… and taken a sledge hammer to virtually every asset except maybe collectible Hummel figurines.
(You can still use those as projectiles for hunting varmints…)
Many investors are wondering these days if they should they stay in the markets at all. Maybe it would be less painful to sell what’s left of their stock portfolios, close their eyes, and hope for the best.
Honestly, I’ve had a moment or two like that myself in the last couple of weeks.
But then I looked at the markets and realized… there’s no way not to make money on fluctuations of 3%… 5%… even 10% and more in a single day… up and down and back up again!
What the markets have done for us is lowered our capital at risk
Think about it: Instead of taking your chances on a $60 stock for a 20% gain, you’re now able to trade that same stock for just $30… $15… or even $5.
I’m not saying you should willy nilly plow money into companies because they’re cheap. But risk a small amount of your cahs flow buying select stocks.
In many cases, solid, established companies are now trading at penny stock prices… but with blue-chip trading volumes!
For investors with a long investing horizon, this is a once-in-a-lifetime opportunity to build legacy wealth for pennies on the dollar. It may take a while and more than your average Joe’s share of vision to realize those gains…
For traders, trading the actual shares of companies has become almost as cheap as trading options used to be!
The risk may be the same in the short term… but the chances of exponential payback has increased along with volatility.
At TFN, our approach is straightforward: Provide our readers with profitable investment and trading recommendations… no matter what the overall markets are doing…
Sure, we’ve had our shares of stinkers, both here at TFN and through our elite premium research service, Hot Stock Confidential.But w hile markets crashed, our stock experts generated fast, safe, reliable gains on both the U.S. and overseas markets. Just take a look…
- 33.9% on VimpelCom (VIP) in a day…
- 71.9% on Under Armour Jan 30 Puts (UAMF) in 5 trading days…
- 79.6% on Boeing Feb 55 puts (BANK)…
- 23.2% on StemCells Inc. (STEM) in 6 trading days…
- 87.1% on National City Jan 2.5 Calls (NCCAZ)…
- 29.4% on Apex Silver Mines (SIL)…
- 30.6% on McDonalds Dec 62.5 puts (MCDXZ)…
- and 83.2% on Altria 2008 Nov 22 17.00 Calls (MOKR) in a single day.
Right now,we’re keeping our eyes on literally dozens of similar opportunities.
The assets we select are stocks we’d buy ourselves, even in a “normal” market… and would have no problem recommending to our relatives.
They’re companies whose insiders are buying… that have easy-to-understand business concepts, established markets, growing revenues and unique products. Some are making great progress in the fields of biotechnology… genetics… medical diagnostics. Long-term, they will make good investments. But in the meantime, every small breakthrough… every successful step in the approval process… holds the potential for amazing short-term profits. Especially in volatile markets like this!
In many instances the daily trading volume of these companies is so light, a single story in the mainstream media… an Internet rumor… a line dropped on a bulletin board… could double or triple their average daily trading activity and push stock prices out of our advisable buying range.
The key to successful investing in a market environment like this is timing. To maximize your potential returns, it’s essential that you’re able to get into a recommendation within our advisable buying range – and get out as soon as we issue a sell alert.
That’s how Hot Stock Confidential Members had the opportunity to cash in on gains like 41.8% on Nymox Pharmaceutical, 38.4% on Alon USA, 26.7% on Synta Pharmaceuticals and 83.2% on Altria 2008 Nov 22 17.00 Calls.
One such opportunistic opportunity emerged today:
This morning, Andy Snyder went and harvested the first batch of the gains we’re planning to bring in from our Gold Hedge: “I want you to sell your January Puts for a gain of about 50% and use the principal to buy this new set of put options to cash in on further declines.”
At the time of his posting, this put option cost you $3.10. A little later, when our HSC subscribers received the emailed- alert, it was up to $4.10.
This means that we have just refreshed the bearish leg on our gold hedge play. You may have missed the first round of our put position on gold… But this is your opportunity to get in on a second opportunity to profit from the crushing downward pressure on gold!
Find our Special Report on the Members Only Reports section of HotStockConfidential.com. To become an instant member, click here…
Recommended Reading
“Under Armour (NYSE:UA) cannot hide from a recession”
“Russia’s financial desperation will lead to trouble”
“Income investing: Dividend opportunities during a recession”
Cordially yours,
J. Christoph Amberger
Executive Publisher, TodaysFinancialNews.com
Next Article: Cold War II: You could double or even triple your money in the coming energy showdown!
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