Market: Stock Options
EARN WHILE YOU LEARN TO TRADE
Joe Ross Wants You to Learn the
Easiest and Safest Way to Trade
Joe Ross (developer) and Philippe Gautier (administration and new developments) have spent the last several years perfecting a way to earn instant guaranteed income. It is a way which regularly earns . One of the best ways to acquire wealth is through the use of other people’s money, and there need not be anything negative about it. For example: a young person full of energy and ideas, but no money, might convince another person to back his/her idea.
The ONE strategy we are going to talk about involves selling insurance.
Venture Capital companies do this sort of thing all the time, and more often than not, it turns out to be a winning situation for both parties.
We believe the best business in the world is that of selling insurance. Insurance is the prime example of using other people’s money to make money. Think about it. Insurance companies use your money to make money, and you pay the money to them in advance, hoping you never have to make a claim. It’s really a clever idea. Using a large enough base, an insurance company can almost precisely figure out the amount of risk they are taking, and they know that by eliminating virtually all of the risk, they can make a profit.
When you buy health insurance, for example, do you hope that someday you will be sick, and have to make a claim? Is it any different for car insurance? Do you hope that someday you will have an accident and need to make a claim? Of course not! In fact, even with the certainty of death in a life insurance policy, there exists an assurance that you will never make a claim. If a claim is made, it will be made by your survivors.
All kidding aside, are you aware that you can use other people’s money for trading? We don’t mean gambling away your parent’s money trying to trade successfully. We don’t mean borrowing money against your assets in order to trade. What we're writing about is that you can legitimately use other people’s money to provide those who need it with price insurance.
Let’s take a moment to look at price insurance. Let’s say you own shares of stock and you are worried about stock prices falling. Is there something you can do to avoid disaster? After all, we’ve often seen people holding stocks lose huge amounts of equity in the shares of stock they hold.
Many years ago, it became possible to protect against huge losses in the price of stocks by paying a premium for price insurance.
When a car owner buys insurance, he pays a premium. It’s called an “Insurance Premium” It protects the owner of the car from serious loss. In return for the premium paid he receives an insurance policy, in effect, a contract between the insurance company and the owner of the car. Both the car owner and the insurance company hope that a claim is never made.
It’s the same thing when the owner of shares of stock buys price insurance. He pays a premium. In return for the premium paid, he receives an option contract. The contract is between the insurer and the owner of the shares. The option contract has a name. It’s called a “put.” A put gives the owner the right to sell his shares at an agreed-upon price at an agreed-upon date. So, if share prices drop to the agreed-upon price, the owner of the shares can sell them to the insurer.
The insurer is the person who sold the insurance to the share owner. The insurer receives a premium for selling the insurance known as a “put option,” and both hope that a claim never needs to be made. Approximately 80% of the time a claim is never made, and if the insurer carefully underwrites the risk, it is possible that more than 90% of the time the claim will never be made.
An important part of selling insurance is receiving the premium money up front. Because the money is received as cash right at the beginning of the insurance period, the insurer has the use of the premium money (other people’s money). If risk is properly underwritten, and the money is used properly, the insurer (the person who sold the put, who always gets to keep the premium) will have the use of the money during the contract period. That money can be invested in short-term interest-bearing instruments, or used to sell additional insurance. Either way, the premium is compounded and can increase the wealth of the put seller.
In 2007, we began to sell price insurance on shares, which we had been doing with spreads on futures for many years. We almost always made excellent returns. However, selling price insurance on shares produced even better returns, so in 2008 we started to developed this product (IIG), which came up with ways to virtually take 99.9% of the risk out of selling price insurance.
We began showing others how to do it. There are some tricks that are not immediately noticeable. We marketed what we do with the name "Instant Income."
You should be able to follow the strategy using any stockbroker. If you need a broker referral, we can recommend one we trust and we are happy to refer you.
The strategy we use is good for three things:
- Wealth building over time (requires patience)
- Current income for those with sizable accounts
- The highest level of safety we have ever seen
The strategy we have been talking about is selling uncovered options. Selling uncovered option, or having to cover an uncovered option, are nothing new. They have been around for a long time. In fact, the profitable strategy of selling uncovered options could make you wealthy.
What is new is rarely having to cover an uncovered option. What is new is rarely having to own shares of stock. What is new is that you will probably rarely have to take a loss. When done correctly, you will have the best of what is new. You can accumulate wealth with option premium without losing money. With sufficient capital, you can make your living by selling options.
Instant Income Guaranteed
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Two Months of Detailed Guidance
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Continuing Detailed Guidance for those who have completed the Three-Part Webinar.
At the end of two months, some of our customers prefer to continue receiving their trades rather than venture out on their own. This service is called Continued Detailed Guidance (CDG). CDG is available to you for $99 per month or select our super savers discount at a low annual price of $600 ($50 per month).