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Oil Income Portfolio
When I think of oil I can’t help it
to hear the old “Beverly Hillbillies” theme song in
my head. Click Here
if you would like it in your head.
Well old Jed Clampet, Texas wildcatters, and Saudi sheiks aren’t
the only ones who can make money on oil. You just might be able
make some money, too. And you won’t have to start digging
holes in your backyard. In fact your hands won’t even get
dirty.
Impossible you might think… Well you haven’t seen our
Dividends Plus portfolio yet...
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You might think the only way you can pocket
some cash off oil is to open a gas station. Well we’ve found
a better way. The downside is if you do it our way you won’t
get a spiffy striped shirt with your name on it.
Oil prices seem to only go in one direction… Up, up, up…
While everyone else complains, smart investors can use the same
oil companies that have been making windfall profits to help build
the cash in their portfolios.
Many oil companies pay nice fat dividends. Some as high as 10%
a year. We know of a few that pay those fat dividends every month.
But as with any stock purchase you risk getting hurt if the stock
price drops. Those dividends won’t mean much if the stock
drops few dollars and wipes out those dividend payments. So what
we do is hedge our position in this portfolio against a drop in
the stock. Not only does this protect our downside but it also increases
our actual dividend yield.
Let’s see… You collect dividends. You are protected
from a drop in the stock prices. And dividend yields are amplified.
Plus no dirty hands.
Sounds good to me… Here are more details:
The Oil Income Portfolio service points out a series of trades
that should generate up to 10% to 20% annual return including dividends.
The goal is to use hedged trades on dividend paying oil stocks.
Hedging with a covered call partially protects against a potential
drop in the stock. There will usually be from one to two trades
a month. Only underlying stocks with reasonably strong technical’s
and a history of higher dividend payments will be used. The plan
is that at option expiration either the stock will be called away
or the option will be "rolled" to month farther out in
time to capture more cash for the portfolio and further hedge the
position. The stock may also be sold at expiration if it is determined
that closing the position is the best way to maximize return or
minimize losses. Using sophisticated computer models we hunt down
the trades with the highest return and the lowest risk.
This is a great way see the types of investments that can produce
solid dividends and reducing the overall risk of holding stocks
while conserving your investment funds. We use sophisticated computer
models to hunt down the trades with the highest return and the lowest
risk.
This service uses one page with each trade dated along with a short
discussion of why the trade was chosen. A table summarizes the trades
and the total profit for the month. These trades do involve equity
options as a hedging tool and there are risk factors, so be sure
to see the disclaimer below.
You could take part of the dividends you make from this portfolio
and buy one of those striped
gas station shirts with your name on it. Think how it woulD
look with “Jed”.
And it's guaranteed! Click
here for more information on our Money Back Guarantee
Relative Risk (1-10 -> 1= Highest risk): 8
Capital Requirements: $2,500 to $100,000
Number of Trades Per Month: 0 to 5
Recent Holdings: New Portfolio
Monthly Subscription Cost: $99.95 (Note: This portfolio is included
for free as part of our Premium Service)
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All stocks, options and E-Mini
futures shown are examples only. These are not recommendations to
buy or sell any security. Any pricing or potential profitability
shown does not take into account your trade size, brokerage commissions
or taxes which will effect actual investment returns. Stocks, options
and E-Mini Futures involve risk and are not suitable for all investors
and investing in options and futures carries substantial risk. Prior
to buying or selling options, a person must receive a copy of Characteristics
and Risks of Standardized Options available at: http://www.cboe.com/Resources/Intro.asp.
If you choose to trade the E-Mini, you should review and familiarize
yourself with information available at http://www.cme.com/files/E-Mini.pdf,
http://www.cme.com/prd/overview_ES702.html. Stock recommendations
and comments presented are solely those of the analysts, experts,
or information source quoted. They do not represent the opinions
of Investors Observer or InvestorsKeyhole on whether to buy, sell
or hold shares of a particular stock or option. Investors should
be cautious about any and all stock or option recommendations and
should consider the source of any advice on stock or option selection.
Various factors, including personal or corporate ownership, may
influence or factor into an expert's stock analysis or opinion.
All investors are advised to conduct their own independent research
into individual stocks before making a purchase decision. In addition,
investors are advised that past stock / options / E-Mini futures
performance is no guarantee of future price appreciation or depreciation.
Those involved with the preparation and distribution of this report
may have had in the past, currently hold, or may purchase in the
future stock and/or options in companies discussed in this report.
It is expected that the limited distribution of this report to a
relatively small number of investor will not materially affect the
price of this widely held stock.
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