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The Perfect Trade/Double Hedge


Our hard-working team of analysts were combing the markets a while back when they came across an options strategy that was great for stocks that do not move very much.

When they investigated further, they found that if this strategy was implemented on the correct stocks, this was another way to place "Perfect Trades".

After experimenting for a while behind the scenes, they created the Perfect Trade/Double Hedge Portfolio.

Read on for all the details...

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Every month the Perfect Trade/Double Hedge Portfolio service points out a series of calendar call or put trades using very stable stocks and requiring much little capital. We will sell a call (or put) at the money or just out of the money and about 30 days away, while at the same time buying the call (or put) at the same strike price about 60 days away.

The goal is for each trade to generate at least a 5% return over 30 to 60 days even if the underlying stock drops in price. Only underlying stocks with reasonably strong technicals will be used. At or near option expiration either the stock will be called away, the call option we own will be executed, or the sold option will be "rolled" to a month farther out in time to capture more cash for the portfolio. For the covered call trades usually there is no closing transaction required while the hedged trades may require follow-on trades to maximize returns. 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 trades that can rely on solid stocks to produce double-digit annual returns while reducing overall risk of holding the stock and conserving your investment funds.

The idea behind the trades in this portfolio is to identify the most solid stocks possible then create trades that in most cases may actually be less risky than just buying the stock alone.

Less risk, higher returns, and solid stocks. Sounds good to me.

And it's guaranteed!  Click here for more information on our Money Back Guarantee

Relative Risk (1-10 -> 1= Highest risk): 6
Capital Requirements: $2,500 - $10,000
Number of Trades Per Month: 2 to 12
Recent Holdings: CVS Corp (CVS), Colgate-Palmolive (CL), American Tower (AMT), PNC Financial Services Group (PNC)

 

All stocks and options shown are examples only. These are not recommendations to buy or sell any security. The examples above do not take into account your trade size, brokerage commissions or taxes  which will effect actual investment returns. Stocks and options involve risk and are not suitable for all  investors and investing in options 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.