In a recent teleconference with our Eagle subscribers,
Roger Michalski and Bryan Perry discussed how
Breakout Profits Alert produces great gains and
what the best strategy is to profit from inflation.
Here’s the transcript from that call…
ROGER: Bryan, you have a way to profit from inflation. And most people have never traded these in their portfolio. Can you tell us a little bit more about that?
BRYAN: Sure, Roger. Most people read about the explosion of the options trading business and how exciting that is. It dominates the whole meme stock craze and what’s happening on Robinhood. In the last year, people have been sitting in front of their computer doing just about everything they can to trade in their personal accounts and have become enamored by the options business. But, as we know, for most people that trade options, about 99% of their options expire worthless. In the options business it’s the ultimate greed factor that kicks in. You think an option is going to move higher and people tend to buy way too little time and they buy too far out of the money for that option to really work out for them.
What I’ve crafted is a portfolio of long-term dated options called LEAPS – an acronym for long-term equity anticipations securities. What that means is you’re buying long-term dated call options between 1 and 3 years out. This way you buy all the time in the world for a stock to take a fundamental move higher. At the same time, you’ll be leveraging that position by using a long-term call option which means you don’t have to borrow money from Schwab, TD, or Fidelity to leverage that trade. Instead, you can leverage that position and take a turn around stories like Ford or any of the travel stocks where they have been crushed in the last year but have started to make their way back, growing higher and higher. By simply buying extremely cheap long-term dated call options, you can leverage these turnarounds.
Our service is called Breakout Profits Alert and is built entirely around creating a portfolio on these long-term dated LEAPS options that are tied to these stories where if the stock moves even 10%, then you’re looking at 30%, 40%, even 50% gains. With some of these stocks the potential is for them to double and trade even higher over the next year or two resulting in colossal returns on the call option – 100% or higher! Easily.
I have found this to be one of the more exciting strategies as the market recovers because there are still a lot of stocks that have yet to turn higher and trade well. We also want to be in those sectors where they are just under owned and still have a lot left in them because of institutional ownership. Keep in mind, the LEAPS option business has just become more popularized by all the short-term trading that has taken place in the last year. As more people get interested and they begin to understand the strategy of buying time and leveraging that time to buy stocks, it’s a great way, Roger, to take a $10,000 to $15,000 portfolio and control $300,000, $400,000, even $500,000 worth of stocks. And that is the beauty of buying long-term dated call options. You have incredible control over a vast basket of assets. That is what I find to be the most exciting investment proposition with this service.
ROGER: That’s what’s great about it. You have time on your side. With these LEAPS you have a great opportunity to multiply your gains. Can you tell us more about your portfolio and what exactly you do with Breakout Profits Alert?
BRYAN: There are two ways to go about this… one is to look at how to buy expensive stocks that take up so much capitol. If you want to buy one share of Amazon today, that’s going to cost you about $3,700 for one share. But, we can also buy a call options on Amazon that are going to cost about $5,000 with a $4,000 strike price. This will control 100 shares of Amazon – about $37,000 worth of stock. Breakout Profits Alert will buy into these heavy weight names without breaking the bank, allowing you to build a portfolio with 10-12 names where you are all in with $25,000 or less. This positioning gives you the opportunity to control market leading names for a fraction of the cost of the stock itself. Time is the enemy for many traders, but here, we have time on our side. That is the beauty of owning LEAPS.
ROGER: We’ve had this service for 5 years now, Bryan, and looking back at the full 5 years, this service has had an annualized gain of 176%! The average return per position is 40.83% and the average days held is 85. That includes every trade you’ve made in the last 5 years. We are making about 40% in a 3 month period! A lot of great gains here, and like Bryan said, time is on your side. It’s pretty clear that Bryan’s track record speaks for itself.
There you have it, a glimpse into what Breakout Profits Alert is all about!