We all know about Martha Stewart’s recent woes – she’s been
found guilty of various charges relating to the sale of her shares
of Imclone stock. Her problems started when questions were
raised about whether she sold those shares based on “insider”
information.
Here’s what I want to tell you about the whole fiasco...
If only Martha Stewart had known about the conservative
investment strategy I’m about to share with you in this
report, she could have actually MADE MONEY even as her
shares of IMCLONE went IN THE TOILET!
When you’ve finished reading this article, you will have
learned about a conservative investment strategy that few
other people know about, yet is used every day by Wall
Street professionals to literally INSURE THEIR PORTFOLIOS
and LOCK IN A GUARANTEED SELLING PRICE FOR THEIR SHARES!!
If Martha had used this strategy, everything would have been
fine – her broker never would have even called her, BECAUSE
HER IMCLONE SHARES WOULD HAVE BEEN “INSURED”, AND IT
LITERALLY WOULDN’T HAVE MATTERED IF IMCLONE WENT TO
$0.05/SHARE!
Instead, as we all know, neither she nor her broker had any
sort of “safety net” in place under her shares of IMCLONE,
so she decided to “bail out” when she learned the price of
IMCLONE was falling. And the rest, as they say, is history…
In this article, I want to let you in on what has been,
until now, a closely guarded secret of the Wall Street
professionals and a select group of savvy investors.
Just give me 5 minutes of your time, and read this article –
I’m about to reveal to you a conservative strategy that
literally could change the way you invest your money, just
as it’s changed the way I invest.
Although I can almost guarantee that you’ve never heard of
this strategy, it’s used every day by smart, conservative
investors who want to protect their portfolios against
downside risk.
And, although the professionals on Wall Street use this
strategy every day, it’s also available to folks like you
and me!
As I mentioned in the headline, if Martha Stewart had used
this investment strategy, NONE of her current legal troubles
would have occurred – ZERO, ZIP, NADA!!
She wouldn’t have been forced to stand trial, and the value
of her company wouldn’t have collapsed like it did when news
of her troubles first came out…
In fact, she could have actually MADE A PROFIT even as her
shares of IMCLONE dropped in value!
If the investors who lost their life savings when Enron and
WorldCom collapsed had known what I’m sharing with you now,
THEIR INVESTMENTS WOULD HAVE BEEN SECURE!!
SO WHAT IS THIS STRATEGY?
So what is this strategy that would have prevented ALL of
Martha Stewart’s legal troubles and enabled her to actually
MAKE A PROFIT even as her shares of IMCLONE took a major
hit?
What strategy do the Wall Street pros use that could have
saved the millions of Enron and WorldCom investors literally
BILLIONS OF DOLLARS by literally “putting a safety net”
underneath their portfolios?
I’m talking about “Stock Insurance”
Here it is… the strategy these Wall Street gurus use to
totally protect and hedge their portfolios against downside
risk is a strategy that acts exactly like “stock insurance!”
That’s right – you can actually “insure your stocks” with
financial instruments known as “Put Options” that literally
enable you to place an “insurance safety net” under your
stocks that will let you sell your stock at the “insured” price
regardless of what the actual market price is!!
The professionals on Wall Street use this strategy every day
to “hedge” their investments, and SO CAN YOU!
If Martha (or her broker) had known about this strategy and
had “insured” her shares of IMCLONE, her “insurance” would
have protected the value of her IMCLONE stock by giving her
the guaranteed right to sell her shares at their insured
value.
In other words, if Martha had “insured” her IMCLONE shares
and locked in a GUARANTEED SELLING PRICE OF $60/SHARE,
she would have been able to sell those shares at their insured
value of $60/share, REGARDLESS OF THE ACTUAL PRICE OF
THE STOCK!!
The whole issue of whether or not she issued a “Sell” order
to her broker or not NEVER WOULD HAVE SURFACED, SINCE
SHE WOULD HAVE BEEN PROTECTED WITH HER “STOCK
INSURANCE!”
Think about the significance of this strategy, and what it
could mean to you if you began using this strategy…
Right now, you may have shares of GE, Exxon, Wal Mart,
Microsoft or any of the thousands of other stocks that are
available, either here or abroad. If you’re like the vast
majority of the investing public, you own these stocks
without any downside protection.
In other words, if the bottom dropped out of these stocks
tomorrow, and their prices went to 50% of their current
values, you’d be in a “world of hurt”, and your portfolio
value would take a major hit!
Don’t think it can happen? Tell that to folks who owned
Enron when it went from $70 to $0.10 in a matter of weeks!
Tell it to anyone who was holding WorldCom, ImClone, Global
Crossing or Martha Stewart Omnimedia shares when those
companies took a nosedive!!
Tell it to anyone who witnessed the “dot-com implosion” and
downward spiral of the stock market from 2000 – 2003!
The bottom line is this – just as you insure your house,
your car or your boat against catastrophic financial loss,
you can also “insure” your stocks against a sudden downward
movement in your stock or in the overall market!
PUT OPTIONS AS “STOCK INSURANCE”
As I mentioned above, put options are financial
instruments that give their owners the GUARANTEED
RIGHT TO SELL their shares of stock in a given company,
REGARDLESS OF THE ACTUAL PRICE OF THE STOCK!
In addition to guaranteeing their owner the right to sell
his/her shares at the “insured” price, they also increase in
value as the value of the “insured” stock declines!
These put options act essentially like car insurance or
homeowner’s insurance, and provide a “safety net” under your
stocks. If the price of your insured stock suddenly takes a
major nosedive, and falls below your “insured” price, you
will be able to exercise your put options and sell your
stock for the “insured” price, regardless of what the actual
price of the stock is at the moment you sell!!
Or, if you want to hold on to your stock, you can just as easily
sell your put options, since they will have appreciated in value
as your stock went down in value.
Think back for a minute about the tragic events of 09/11/2001,
and the effect these events had on the US stock market. The
overall market was already in a downturn prior to 09/11, and
of course those events just made the downturn even worse.
Most investors and “professional” portfolio managers “took
it on the chin” during this time, as they watched the value
of their portfolios continue to decline on a daily basis.
BUT IT DIDN’T HAVE TO BE THAT WAY!
Just think how put options could have “saved the day” –
because put options increase in value as the value of the
underlying stock goes down, millions of investors and
portfolio managers could have limited their losses, or
ACTUALLY MADE MONEY, if they had only known about the
benefits of owning put options.
Or think for a minute about the Enron fiasco – millions of
people lost their life savings when Enron stock went from
$70/share to $0.10 in a matter of days!
If they had only known about put options, they could have
“insured” their portfolios, instead of watching their
retirement accounts go down the drain!!
Well, that was then, and this is now!
Although you may not have known about put options or “stock
insurance” until now, the wonderful thing is that NOW YOU
KNOW!
AND, NOW THAT YOU KNOW ABOUT HOW YOU CAN
“INSURE” YOUR PORTFOLIO, IT’S TIME TO TAKE ACTION!!
AFTER ALL, WHAT’S THE GOOD OF KNOWING SOMETHING
IF YOU DON’T ACT ON THE INFORMATION?
WHAT DO YOU DO NOW?
“So,” you may ask, “what do I do now? How can I ‘insure’ my
stocks with these put options?”
The short answer is that you’ll need to find a broker who
understands put options. Or, you can do what I do, which is
to purchase these put options myself through an on-line
broker that specializes in investment strategies that
involve put options.
Although there are many such on-line brokers, I use
http://www.optionsxpress.com. Their commissions are cheap
when compared to a full-service broker, their service and
trade execution are superb and they specialize in all
strategies that involve put options.
You Have A Choice To Make…
I’m hoping that what you’ve just read has convinced you to
learn more about how you can use put options to “insure”
your portfolio against downside risks…
You now have a choice to make – you can do one of three
things:
a. Do nothing
b. Attempt to learn about put options on your own
c. Allow me to share with you the knowledge that I have
about how to PROPERLY use put options
Option (a) is for the birds, in my opinion… Now that you
know how to protect your nest egg, why would you choose not
to???
Option (b) is possible – if you have lots of time on your
hands and don’t mind having an un-insured portfolio while
you attempt to learn how to PROPERLY use put options to
hedge your positions. Just hope nothing bad happens while
you’re trying to teach yourself what you need to know…
Option (c) is the only logical way to go! I’ve already done
all of the work – all you need to do is apply my system to
your portfolio, and you’ll be set!!
***** IMPORTANT *****
Although you’ve just learned the basics about how to use put
options as “insurance” for your stocks, there’s certainly
much more involved than just calling up your broker and
ordering a batch of put options. Put options come in a
myriad of sizes, shapes and colors, so it’s important that
you match up the proper put option with its intended
purpose.
That’s where I’m hoping you’ll let me share my knowledge
with you, so you won’t have to re-invent the wheel!
Click here to obtain additional FR*E reports and information
I have for you that will help you learn how use put options
to “put” (pun intended) a safety net underneath your
portfolio.
In addition to sharing with you how to use put options to
provide a fool-proof downside protection for your stocks,
I’ll also tell you about another strategy that lets you
literally “rent out” your stock and generate cash flow, even
if your stock doesn’t increase in value!!
“How in the world can you sell something for what you paid
for it and still make money?” – I know that’s what you’re
saying…
Just click here and then request the FR*E report titled “How
To Buy Stocks At Wholesale Prices” – after you’ve read that
report, you’ll know exactly how you can “rent out” your
stock and become a Stock Landlord!
Then, you’ll understand the reason behind the name of my
website, http://www.TheStockLandlord.com.
But, even if you don’t choose Option c, and you decide not
to seek additional information from me, I sincerely hope you
will at least pursue Option b, and will get your portfolio
insured with put options!
You’ve Been Given A Gift
You’ve just been given a gift that few other investors have
– the knowledge of how you can absolutely and positively
lock in downside protection for your portfolio – and I’m
sincerely hoping you will take advantage of this gift and
get your portfolio insured!
Click here and request the FR*E report “How To Buy Your
Stocks At Wholesale Prices”. Thousands of savvy investors
and Wall Street professionals use these strategies every
month, and now you can, too! Give me just a couple of
minutes of your time and check it out!
Obviously, if you have any questions at all, please shoot me
an email or just give me a call… I’ll be happy to help…
Sincerely, Rick Dennis The Stock Landlord
http://www.TheStockLandlord.com
© Rick Dennis 2004
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