Scott Brown at Sabrient has set up a deal with OptionsXpress for those who want to subscribe to PSW and/or Sabrient, and open an account at OptionsXpress. Here’s the OptionsXpress deal, first with Sabrient. The same deal is available for new and renewing Phil’s Stock World subscribers. (Keep reading below.) – Ilene
How to Make Money in Stocks and Still Sleep Well at Night … and Get $500!
In this wild and crazy market of 2010 the Sabrient Investor’s (H)Edge Virtual Portfolio is UP +6.74% YTD while the S&P 500 is DOWN -0.91%! The Sabrient Investor’s (H)Edge Virtual Portfolio is a balanced long/short virtual portfolio which aims protects our subscribers in ALL markets.
How?
Based on Sabrient’s highly predictive Company Outlook Rank, we can identify the fundamentally strongest stocks with the best valuations and the most upside potential, as well as the fundamentally weakest stocks that should lag no matter what the market does. The resulting long/short virtual portfolio lets you capture the performance spread between the longs & shorts.
A balanced long/short virtual portfolio like Sabrient’s Investor’s (H)Edge is a great approach to a volatile, unpredictable market. Every Thursday, David Brown reviews one long and one short, and either renews or replaces the stocks, depending on their current rankings and fundamentals. Take a look at the latest selections HERE – And click the 2009 Virtual Portfolio link on that page to see all the trades from last year.
Our backtested, forward-tested and time-tested strategies have averaged +34.1% per year since 2000, providing safety in the 2008 meltdown and on virtually every down-market day in the past two years. The Investors’ (H)edge virtual portfolio has a beta of .25, an alpha of 28.6% and a Sharpe ratio of 1.36, and is designed to profit from both up and down market moves.
The Sabrient Platinum Subscription:
Investor’s (H)Edge Virtual Portfolio is part of our Platinum Subscription, which also includes:
• The Select Opportunity Virtual Portfolio, a long/short virtual portfolio for active traders, which is averaging 3.5% per stock trade, with an average holding time in each trade of 16 days.
• MyStockFinder, a powerful stock search program for finding stocks that match your particular investing requirements, such as stocks with high insider buying or recent analyst upgrades; stocks with high growth rates or strong dividend yields.
• The Sabrient Ratings Reports that let you see at a glance how Sabrient rates a stock, any stock from our 5,800+ universe, with our 5-level rating system: Strong Buy/Buy/Hold/Sell/Strong Sell.
• Ten Top 10 Stock Lists that present the top-ranked stocks of the day by cap (Micro-caps, Small-caps, Mid-caps, Large-caps) or by style (Value, Growth, Momentum) or by specialty niche (High Insider Buying, GARP, Hidden Gems).
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How to Buy Quality Stocks for a 10%-20% Discount & Get $500 Deposited in Your Trading Account
Here’s a simple method to concentrate on equity investments that give you better prices than those paid by the average retail investor.
First, pick stocks of highly-rated quality companies. Sound investing principles include purchasing stocks that have strong underlying fundamentals at good prices. To choose a high-quality company with an undervalued stock, take a look at Sabrient’s extensive database of in-depth research reports.
Second, stay ahead of the game using very basic option strategies, such as Phil Davis’s Buy/Write Strategy.
Phil’s Buy/Write Strategy is an excellent method for establishing a new bullish position in a value stock. It is a variation of one of the most effective, time-tested tools for investing in volatile markets and it allows us to purchase stocks for 10%-20% below their current price. By writing (selling) options against our stock, we collect option premiums. In addition, selling options simultaneously with buying a stock, using Phil’s Buy/Write Strategy, is one way to automatically scale in without having to monitor the position that closely.
Phil’s Buy/Write Strategy in Action
In the Sabrient-PSW virtual portfolio called Dark Horse Hedge, we used this strategy when adding VECO to our long positions on Wed. Aug. 25, 2010. We sent out a notification:
BUY Veeco Instruments, Inc. (VECO) at the market, Wednesday, August 25, 2010
Our strategy–for each 100 shares of VECO stock, sell 1 Oct. $32 call and 1 Oct. $32 put:
- Buy 100 shares of Veeco Instruments, Inc. (VECO) at the market. VECO was trading at $32.
- Sell VECO Oct $32 call at the market: Sell VECO101016C000320
00 call at $3.00. - Sell VECO Oct $32 puts at the market: Sell VECO101016P000320
00 put at $3.20.
We collected $6.20 in premium against our $32 price for the stock, reducing our cost basis to $25.80.
Two possible scenarios:
1. If VECO trades above $32 on Oct. 15, 10, then we give up our shares for $32, keeping the $6.20 premium we collected from selling the options. The result is a 20% profit, and we end up out of the position completely.
2. If VECO trades below $32, we are obligated (due to the sold put) to buy another 100 shares of stock at $32. Our average price will be ($25.80 + $32)/2, or $28.90. Our cost basis is 10% less than if we simply bought 200 shares of stock. If 200 shares is our full position, we can now write 2 calls against the position, and collect more premium. If our ultimate position size is larger, we can also write a put against the position–opening the possibility of owning another 100 shares in the future.
This is a common strategy of hedge fund managers, but anyone can do it. It is one of the best ways to capitalize on volatility while hedging risk on long positions.
If the market ends up flat-lining, we’ll be positioned in quality stocks at good prices and can generate a very reasonable monthly income.
Phil’s Stock World Report features some of these trades weekly… Try it out. To start, sign up for a subscription to PSW. To take advantage of the $500 cash offer from OptionsXpress, click on the large OptionsXpress button below.
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Sabrient and Phil’s Stock World Subscribers: Take Advantage of a Great Deal . . . $500 from OptionsXpress.
Open an account at OptionsXpress, and after 20 trades, we’ll fund your account with $500!
Pay your Special low Subscription rate
+ Get a $500 deposit from optionsXpress
= Great Deal!
Details on how to take advantage of this offer will be provided when you click on the optionsXpress link.
Disclaimer: Trading involves risk, including possible loss of principal and other losses, and past performance is no indication of future results. We make no representations that the techniques used in our rankings or selections will result in or guarantee profits in trading. Further, our analyses are based on third-party data, which we cannot guarantee as to adequacy, accuracy, completeness or timeliness. We accept no responsibility for any loss arising for use of these materials.
Hypothetical or simulated performance results have certain limitations unlike an actual performance report. Simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. Simulated trading programs in general are also subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Copyright © 2010 Sabrient Systems, LLC. All rights reserved.
