Beta strategy pays off: Triple-digit gains!
Today's Financial News - Posted January 6, 2009
Our initial tests are a success. Just one week ago, I began beta testing our latest investment strategy. It is already paying off with gains of over 100%.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): The New Year is off to a positive start. Wall Street came back from its holiday vacation in a good mood and is already putting hefty gains into our portfolio. For those of you that have been following my recent “beta” recommendation you know exactly what I am talking about.
We are up by nearly 120%… since last Tuesday!
As you may know, over at HotStockConfidential we are beta testing a new “belts and suspenders” strategy designed to maximize profit potential while minimizing, if not eliminating, risk. So far, the theory is working like I never imagined. The very first play is a triple-digit winner.
Here is an excerpt of a weekly update that will be sent to HSC subscribers later today:
YRC Worldwide (NYSE:YRCW) is doing even better than I expected. As I write, the total return on this covered call position is over 100%. Congratulations on the gains.
Because this is a unique strategy, we have a few options going forward.
We can close the options side of our play by purchasing the call options we sold (YUXDA). But those options are selling for a hefty premium as share prices soars. The only way we would want to buy those options is if it looks like the rally will last past their expiration in April.
Our underlying shares have been on a wild ride over the past week, but the gains will not continue much longer. Our options have a strike price of $5. That means we could be forced to sell our underlying position if share price is over $5 at expiration.
The goal is to have shares trading at just under the strike price come expiration. That way we can hold onto our shares and enter a new covered call in an effort to generate even more income.
Finally, we can purchase puts and create a collar position, limiting our downside. With this strategy, we minimize our risk and lock in our current profits, just as the belts and suspenders system is designed to do.
I will watch the position very closely over the next day or so and will post another update. Be ready for the possibility of an updated strategy.
Our strategy is working perfectly and I want you to be able to take advantage of this profitable situation.
Next Article: Reap the gains on TFN’s stem cell stock recommendations!
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