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Weekend Edition

How to Make $320 in Five Minutes
Saturday, August 9, 2014

 On Sunday, S&A founder Porter Stansberry sent us one of the most flattering e-mails we've ever received...
One of our employees recently invited a camera crew into his home to record him trading options with his personal money. It was his first time making this type of trade.
Regular readers know we've espoused the benefits of selling put options for years... It's one of the safest and most consistent ways to generate income in the market. It's a skill every investor should have. Still, we know many of you have yet to sell a put option. So our quest to share this knowledge continues...
 Most folks get scared when they hear the word "options." They think any trade involving options is risky or only for professional traders.
 Even one of our company's directors hadn't sold puts yet... He has worked at S&A for years... And he has personally seen the rest of us make thousands of extra dollars a month using this strategy.
We knew if we could convince him that selling puts was a safe and profitable strategy, we could convince anyone.
 So we brought a camera crew to his house... And we filmed him selling his first put option right from his kitchen counter.
Not only did we convince Jared to start selling puts... In the process, we also created a great primer for selling puts, which demonstrates just how easy and straightforward this strategy is. You'll see him make $320 in about five minutes.
 In addition to receiving great feedback from our readers about this video, we also impressed Porter. He wrote...
Just wanted to say thank you for doing such an excellent job on the selling puts/Retirement Trader video. That's the best exposition of a trading service I've seen in a very long time. It makes us look good as a business. Thanks.

 We hope you'll take a moment to watch this video and see what all the fuss is about. And with many of the world's best companies down nearly double digits in the past couple months, now is the perfect time to learn how to sell puts.
The key is to identify high-quality companies whose shares you would like to own. By selling a put on that company, you name the price you're willing to pay for shares.
 We'll walk you through an actual trade Dr. David "Doc" Eifrig recommended to his Retirement Trader subscribers earlier this year. It's no easy task choosing just one winning position from Doc... His track record is an amazing 178 winners out of 180 closed trading positions. In fact, for three years, Doc didn't close a single loser... He recommended 136 consecutive winning trading positions.
In a March S&A Digest, we walked readers through a trade Doc recommended on drugstore chain CVS Caremark (CVS). CVS is highly profitable and is the country's No. 1 prescription provider. From that Digest...
On January 24, CVS shares traded for about $68. Doc recommended selling a put with a strike price of $67.50 expiring on March 21. For selling the put, his readers received a "premium" of $1.78 per share. Since each option contract covers 100 shares, Doc's subscribers received $178 in their account for each option they sold.
From that point, two things could have happened over the next two months...
If CVS had closed below $67.50 per share at expiration, Doc's subscribers would have had to buy shares at $67.50. That's why you always sell puts only on excellent companies that you would be happy to own. But as we explained above, we're happy to own shares of CVS.
On the other hand, if CVS had closed above $67.50 at expiration, readers would have kept the premium they earned for selling the option.
In this example, CVS rose so quickly that Doc closed out the trade before the expiration date and pocketed $1.69 per option. A broker requires you to hold 20% of the purchase obligation (in this case, $13.50 per share) in cash in your account while you own the put as a margin requirement. Readers earned a 12.5% return on margin in 35 days, or more than 130% on an annualized basis.

 Now that you've seen a real-life example of how selling puts works, I urge you to watch the video we've put together of our S&A employee selling his first put. If you've never sold a put option – or even if you don't consider yourself a trader – you should still watch this video. Again, you'll see how simple the process really is.
Because we're so confident in Doc's strategy, we're giving anyone who tries his Retirement Trader service a six-month, completely risk-free trial. We know that once you sell your first put, you'll be hooked. Click here to watch the video.
Sean Goldsmith

This Week's Winners
S&P 500 Symbol Change
First Solar FSLR +8.0%
Tenet Health Care THC +8.0%
News Corp FOXA +7.2%

Countries Symbol Change
Thailand TTF +0.7%
Mexico EWW +0.3%
Malaysia EWM +0.1%

Sectors Symbol Change
Gold Mining GDX +3.3%
Food PBJ +1.5%
Consumer Staples IYK +0.9%

Commodities Change
Lumber +6.8%
Wheat +5.9%
Cotton +2.4%
Date Range:7/31/2014 to 8/7/2014
From The Crux

This Week's Losers
S&P 500 Symbol Change
Time Warner TWX -13.2%
Walgreens WAG -11.5%
Noble Corp NE -4.2%

Countries Symbol Change
Italy EWI -7.4%
Spain EWP -6.1%
Turkey TKF -6.1%

Sectors Symbol Change
Gambling BJK -6.1%
Telecom IYZ -3.4%
Media PBS -2.4%

Commodities Change
Lean Hogs -3.9%
Palladium -3.2%
Zinc -2.8%
Date Range:7/31/2014 to 8/7/2014
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