ODDS PROFIT HEDGE -FAQ'S
We Make Options Easy!
Q. How do I get your new trade recommendations?
A. We have a secure, private web site that is updated every evening. All you need to do is go visit that web site. You'll see a list of stocks that are suitable for trading. If one of those stocks is highlighted in yellow, our system has found a trade that is so good and our portfolio risk is such that we can take on new positions. We have provided you with exact option purchase instructions. Simply click on the stock symbol to get the entry instructions.
Q. How do I get exit instructions?
A. For those folks who have already traded options, you know it's relatively easy to get into a trade. The hard part is knowing when to get out! That's where ODDS Profit Hedge shines. When you log on to the secure, private web site, you'll see a link to a list of open positions. Just click on that link and you'll see specific, exact exit instructions for each and every trade in the right hand column.
Q. What kind of activity can I expect?
A. One of the most important things you can do as a trader is to trade only when appropriate. There are some advisory services out there that promise a certain number of trades per month. Our Mothers taught us that if we can't say something nice about someone, don't say anything at all. So we won't give you our opinion on the "give them a trade no matter what, because you've got a subscription obligation to fulfill" style of running an advisory service. We give you trades only when our system says we've got an edge. And sometimes, market conditions are such that we don't have an edge. In that instance, we think you'll agree that we're all better off not trading. Sometimes, that means we won't be able to find a "best of the best" trade for a few weeks.
Other times, however, market conditions are such that we find multiple trades each and every day. Sometimes, the number of trades can be overwhelming. That's when our portfolio risk management kicks in. If our system finds multiple trades in any one industry group, we only take the single best trade in that group. If volatility in the market gets too high, we cut back the number of trades we take per day, and the allocation. Finally, if we have a position in a stock's options, and we lose money in those options, we eliminate that stock from our trade list for a while. This has more to do with taxes than anything else.
Bottom line, we simply don't know how many trades we're going to have month-to-month. We do have a max number of trades each month to keep it manageable, and that is twenty. Rest assured, however, that we are looking every day. There have, however, been periods lasting a few weeks in which we've been unable to find any trades. But, remember, this is good as well, as it is keeping us from making trades when we should be on the sidelines. And, don't forget, you are protected 100% for a full year. Should our ODDS Profit Hedge not provide you with profitable recommendations for the year, you'll receive a refund of every penny you paid for the subscription. Also, if you don't make at least $6,000 profit in that year, your next year is free!
Q. What type of strategies are used in ODDS Profit Hedge?
A. By combining option purchases and short sales, you can create an option
spread that both limits risk and puts the probability of profit in your
favor.
This strategy is called a credit spread, because the user is paid to implement the spread. A credit spread is a strategy where you sell an option and then simultaneously buy an option that is further out-of-the money. For example, let's say you are a stock trader. You are following Goldman Sachs, which is trading at 70.72 in early-December 2008. If you thought Goldman shares were not going to rise by 15% in two weeks, you would sell a December 80 call and buy a December 85 call. You would get a credit of 1.20 for implementing that trade. As long as the index stayed below 81.20 over the next two weeks, you'd win. In other words, if the stock went down, you'd make money. If the stock stood still, you'd make money. If the stock rose by 5%, you'd make money. +10% you'd make money. Only if the stock rose by more than 15% in two weeks, would you lose. That's why the odds are so fantastic – there is only one situation that's a loser, and even then, the loss is limited. And remember, you aren't the one finding Goldman Sachs. We're doing that for you, and we're telling you what trade to take, what price, how much to invest, and when to get out!
You can also implement one of the lowest risk option trades out there – a cash secured put. [If you're more adventurous, you can use margin.] In this instance, we look for stocks that are priced around $20 to $40. For example, in November 2008, we found a trade on American Express when it was $23.98. In this instance, we sold the December 17.50 put. Only if AXP shares fell by more than -30% in a month would you lose. As it is with selling a call credit spread, the odds are fantastic because there is only one situation in which you lose. What's more, with these trades, we provide you with a stop to help control the risk.
What's really special is when we're able to combine a call credit spread and a put credit spread. Our research shows that over the past 50 years, the stock market rarely trades up or down more than 6% in a month. You can put that phenomenon to work for you by using options. History shows us that these types of strategies should make money at least 85% of the time.
ODDS Profit Hedge's actual results show that in the right market, even better results can be achieved.
Q. Is there a historical track record?
A. Yes there is an historical track record that uses actual data on the individual options and goes beyond just a hypothetical track record. We test everything. That track record can be found HERE.
Q. Is there a LIVE track record?
A. Yes, and it is amazing! See for yourself by clicking HERE.
Q. Can my broker trade this for me automatically?
A. That's a touchy subject. One must balance convenience for the subscriber with the risk of illegal distribution. I am not saying all brokers are crooked. It's just that I've been in this business for nearly 25 years, and there is an extraordinary consistency among the brokerage community—they get access to private trading advice and then disseminate it freely to all their buddies. Back in the early 1990s, I wrote an advisory newsletter that ended up being copied and distributed on the floor of the OEX pit. That was bad enough. What's worse—we didn't have any market makers as subscribers! Unfortunately, not much has changed. As recently as five years ago, brokers I knew were illegally redistributing my trading advice to their clients.
Because of that history, I am very sensitive to anyone wanting to pass this information on to their broker. Therefore, the answer is no. You would need to place the recommendations yourself either online or by phone. Auto trading, or any other broker or advisor-directed type of trading is not supported by FMR.
Q. Why is it called ODDS Profit Hedge?
A. Three reasons. First, ODDS stands for Options and Derivatives Decision Support. And this recommendation service provides all the support you need to make an options decision. Second, Profit, because that's our objective. And third, Hedge, because our goal is to take market directional exposure out of the equation. Instead, our investment objective is to profit from a discrepancy in the way the standard option pricing models calculate probability.
Q. What type of guarantee does ODDS Profit Hedge have?
A. It has a No Risk, Money Back Triple-Guarantee.
#1: You're protected 100% for a full year. Should our ODDS Profit Hedge not provide you with profitable recommendations for the year, just let us know and you'll receive a full refund of every penny you paid us. No quibbles, no delays, no questions asked.
#2: You will make at least $6,000 profit by the end of your subscription year, or your next year is free.
#3: In any case, "High Probability Secrets of the Stock Indexes" bonus DVD is yours to keep.
If you would like to check availability, click HERE. If you still have unanswered questions, call our office at 800-834-6488.
