Portfolio Facts and Figures
| For 2 Months FREE of selected portfolios and over $1,000 of Bonuses Click Here |
| MarketSmart All-Weather Portfolio |
The MarketSmart All-Weather Portfolio service points out a series of trades every month that should generate around $200 to $1,000 in cash each. There will usually be three sets of two cash-generating credit spread trades that should produce from $1,000 to $4,000 total. One set of trades is designed for an up market, another for a flat market and a final set for a down market. Using your outlook on where the market is headed, you can pick a set of trades consistent with your insights. Since these are credit spreads if the stock does not go against us there is no closing transaction. You get your money up front on the day of the initial trade. This is a great way see the types of trades that can build the cash position in your portfolio. Since this portfolio uses option credit spreads, the trades cost no money but generate cash in your portfolio. Using sophisticated computer models we hunt down the trades with the highest return and the lowest risk. Relative Risk (1-10 -> 1= Highest risk): 6 |
Flat Market Trades (Conservative Put Spreads)
Up Market Trades (Aggressive Put Spreads)
Down Market Trades (Bearish Call Spreads)
* Still open, subject to change |
| Ultra-Conservative Income Portfolio |
Every month the Ultra-Conservative Income Portfolio service identifies new conservative covered call trades on solid underlying stocks. Each initial trade has target duration of 60 to 150 days and target return of up to 10% or more. This service uses sold call options that are in-the-money to provide substantial downside protection and to generate cash returns. The objective of this service is to generate additional cash income that beats the current annualized Certificate of Deposit return rate by up to four times or more. To achieve this goal, a series of follow-on trades involving repeated cash generating sold calls will be executed to provide a stream of periodic cash flows in addition to any actual dividends paid out on the stock. Relative Risk (1-10 -> 1= Highest risk): 8 Portfolio Performance: |
* portfolio still open - returns estimated and subject to change |
| ETF Covered Call Plus Portfolio |
Every month the ETF Covered Call Plus Portfolio service points out a series of covered call trades along with a companion series of hedged trades using the same underlying ETF (Exchange Traded Fund) requiring much less capital. The goal is for each trade to generate at least a 5% return over 60 to 180 days (for comparison purposes 15% to 30% annualized) even if the underlying ETF drops in price. Only underlying ETFs with reasonably strong technicals will be used. At or near option expiration either the ETF 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 diversified ETFs to produce double-digit annual returns while reducing overall risk of holding stock and conserving your investment funds. The Covered Call table below assumes a minimum of 100 shares and one option contract for each trade. Since the actual number of shares traded will probably vary, the covered call table only shows an average return rate for the portfolio assuming equal numbers of shares for each transaction. Relative Risk (1-10 -> 1= Highest risk): 6 Portfolio Performance: |
* portfolio still open - returns include current open positions and are subject to change. |
| MarketSmart Perfect Trade Portfolio |
The MarketSmart Perfect Trade Portfolio service points out a series of trades that have a high probability of making profits. Losses on any investment are always a real possibility but these trades are designed to generate significant cash income while preserving capital and exploiting expected moves in the market. The portfolio will show both entry and exit trades along with analysts comments. Entry and exit times for trade could vary from minutes to many months. The goal is to use hedged trades to partially protect against a potential adverse move in the stock. The plan is to capture our final profit (if any - there is always a risk of losing on these trades) we will either exit the trade before option expiration or go into expiration for an automatic clear out of the positions. 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 returns reduce the overall risk of holding stocks while conserving your investment funds. |
* Portfolio still open - returns include current open positions and are subject to change. |
| MarketSmart 10% Hedged Portfolio |
The MarketSmart 10% Hedged Portfolio service points out a series of trades every month with the goal of generating a 10% return if the stock rises, stays flat, or even drops by up to 10%. Usually three to five very conservative debit spread trades. Since these trades have an initial debit (amount you pay), that debit is the most you can lose on the trade. This is a great way to see the types of trades that can act as substitutes for holding stock. The idea is to take a hedged position in the stock without putting all the money out. The strategy at the core of this portfolio should help you preserve capital, reduce risk, and make index beating returns. Relative Risk (1-10 -> 1= Highest risk): 6 |
* Portfolio still open - returns include current open positions and are subject to change. |
| Conservative Covered Call Plus Portfolio - Click Here for more Info or to Subscribe |
| Every month the Conservative Covered Call Plus Portfolio service points out a series of covered call trades along with a companion series of hedged trades using the same underlying stocks requiring much less capital. The goal is for each trade to generate at least a 5% return over 60 to 180 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. Relative Risk (1-10 -> 1= Highest risk): 7 |
* portfolio still open - returns include current open positions and are subject to change. |
| 3-Way Managed Risk Portfolio - Click Here for more Info or to Subscribe |
The 3-Way Managed Risk Portfolio points out a series of trades every month with the goal of generating a 5% return over a 30 to 90 day period. These investments are set up to manage capital risk, stock price risk, and time risk. We typically use three to five very conservative debit spread trades. Since these trades have an initial debit (amount you pay), that debit is the most you can lose on the trade. This is a great way to see the types of trades that can act as substitutes for holding stock. The idea is to take a hedged position in the stock without putting all the money out. The strategy at the core of this portfolio should help you preserve capital, reduce risk, and make index beating returns. Monthly Subscription Cost: $99.95 |
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| Dividends Plus Portfolio - Click Here for more Info or to Subscribe |
| A series of trades every month that should generate around a 10% to 20% annual return including dividends. The goal is to use hedged trades on dividend paying stocks that protect against a potential drop in the stock of up to 25%. There will usually be from two to five trades a month. Only underlying stocks with reasonably strong technicals will be used and the plan is that at option expiration, either the stock will be called away or the option will be "rolled" farther out in time to capture more cash for the portfolio and further hedge the position. Since these are covered call trades there is usually no closing transaction required. Using sophisticated computer models, we hunt down the trades with the highest return and the lowest risk. Relative Risk (1-10 -> 1= Highest risk): 8 Capital Requirements: $5,000 to $100,000 Number of Trades Per Month: 2 to 5 Recent Holdings: MMM, AIG, APC, and AAPL |
* Portfolio still open - returns include current open positions and are subject to change. |
| HedegPro Portfolio - Click Here for more Info or to Subscribe |
A series of option credit spread trades that should generate several thousand dollars in cash. Although Investors Observer updates and maintains this page, the trades are identified, researched, and tracked by a professional hedge fund manager who remains anonymous so he doesn't upset the investors who pay big bucks for him to manage their money. For the details on how this portfolio came about click here. These are credit spreads so normally there is no closing transaction. You get your money up front on the day of the initial trade. Monthly Subscription Cost: $99.95 |
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| Autotrading Portfolios |
You can autotrade all our portfolios with your broker. Auto-trading allows you to quickly get into and out of InvetsorObserver portfolio trades even if you are not in touch with current market conditions and watching our Portfolio web page. Timely implementation of the Portfolio trades is vital since market conditions can change rapidly. When you autotrade, Portfolio
changes are sent directly to your broker where the trades are entered.
For more information, check with your broker or contact us at support@InvestorsObserver.com
| Important Information, Explanations, and Warnings (READ THIS!) |
Uncle Marv, our attorney, makes us put this stuff in so you need to read every word. (He’s not really our Uncle but as long
as we call him Uncle Marv he keeps sending our bills to some big multinational conglomerate who probably pays them.
I hope it’s not Enron.)
As with any historical investment results, the return rates and profits shown are not a guarantee of future portfolio
performance. The stock and options markets are risky places to play. Anything can happen, so be prepared for it. Never put any money that you are not prepared to lose into anything but a CD, US Savings BOND, or regular passbook bank account.
Portfolio results shown in this document are NOT audited. We make every effort to assure the reporting accuracy but we
do not have a CPA on our staff and we are not even sure we want a CPA in our office. Did you ever see how they get around
April 15th? Because of the varying expiration dates for equity option, follow on option revenues or costs, stock price
fluctuations, and other market related items these results may change. Even thought these portfolios are divided up into
months the positions are actually in place for many months so do not view the returns shown as returns over a one month
period. In some cases these portfolio positions may remain in place for up to or over one year. Refer the InvestorsObserver
web site to keep tabs on portfolio performance. And... We have to say this again because it's true... Past performance is not a guarantee of future performance. This is the stock market, anything can happen.
When you do these kind of trades, you should enter the stock purchase and option sale as one "buy/write" or “spread trade”
order. Even if the stock and option prices vary, you should be able to lock in the debit or credit shown in the table.
For the long version of all our disclaimers and CYAs (You know what that means) see the InvestorsObserver web site. Before you will be allowed to view any of our portfolios, you will be presented with a full disclosure, disclaimer, and “other factors document. You must read it. We apologize in advance but it’s all Uncle Marv’s doing.
Brokerage Account Capital Requirements Monthly 2000 and HedgePro Portfolios
To do these type of trades your broker will require that you have some assets in your account in the unlikely event (but it does happen) that one of these trades goes against you. No margin is used for these trades and they do not cause any margin charges. Assets in your account can be stocks, bonds, cash, or any other assets accepted by your broker. Placing these trades does not use these assets so they will continue to value as they always have. In general, to do every trade in the Monthly 2000 portfolio, you will need $50,000 in assets in your brokerage account.
Commissions and Other Expenses
Our portfolios do not take into consideration trading costs such as brokerage commissions, taxes, etc…
Risk Factors Monthly 2000 and HedgePro Portfolio
There are two main ways these trades can go bad: (1) For the Call spreads, the stock rises above the sold call price.
(2) For the Put spreads, the stock drops below the sold put price. The loss would be limited to the difference between the strike prices items the number of contracts sold. To view more on the risk factors go to http://www.cboe.com/Resources/Intro.asp.
Risk Factors Dividends Plus Portfolio
There are several ways that these trades can go bad: (1) The stock can drastically drop below the break even amount.
(2) The company declares that it will reduce or eliminate its dividend. (3) The stock can be called away at any time and may happen just before a dividend payment. (4) The stock could drastically increase in price. Your return will be limited to the strike price on the sold option.
Risk Factors 10-10 Portfolio and 3 Way Managed Risk Portfolio
There are several main ways these trades can go bad: (1) For the Call spreads, the stock drops below the bought call price.
(2) For the Put spreads, the stock shoots up above the bought put price. (3) Liquidity – The Options market is not always as
liquid as the stock market in general. If the active buyers and sellers of a specific option “dry up”, we may not be able to
close a position at the price we want or the Put spreads, the stock shoots up above the bought put price. (4) Option pricing near
expiration– All the calculations in the tables above are based on the assumption that the options will be fairly priced. But due to supply and demand imbalances along with many other factors, there is no guarantee that these options will be priced at levels exactly related to the underlying stock price. (Translated = An option that should be priced at 2.50 may be 2.40). The
maximum loss would be limited to the amount you paid for the Debit spread when it was initially established. You can lose the entire amount (debit) you paid for the position. We will make every effort to minimize losses if a stock seems to be going
against our position but there is always the risk of losing the entire investment. To view more on the risk factors go to http://www.cboe.com/Resources/Intro.aspx.
Investing in Stocks and/or Options involves risk and are not suitable for all investors. On-line trading has inherent risks due to system response and access times that vary due to market conditions, system performance and other factors such as your
Internet provider. An investor should understand these and additional risks before trading. Please read "Characteristics
and Risks of Standardized Options" available at http://www.cboe.com/Resources/Intro.aspx.