More from Doc Eifrig... The people who give options a bad name... A better way to trade... How to flip the poker game... Drop the baggage... A real-life demo and a free recommendation...
 Today, Doc continues his series about options...
Like I (Dr. David "Doc" Eifrig) wrote yesterday, just reading the word "options" is enough to make most of you stop reading. I know that most of you probably know only enough about options to think they're complex and risky. But that's because you didn't dig deep enough. The first time you tried to drive a car, it probably seemed complex and risky, too. Now you do it every day. You put the time into learning how to drive because it made your life better. Options will do the same for your finances. And just like learning to drive when you were 16 years old, better finances and larger income streams give you more freedom. I don't blame options skeptics. I blame those who taught them options. Most folks get introduced to options the exact wrong way... as a way to make big, fast gains in the stock market. But when put into practice, this "big gain" tactic leads to big losses. That's why we take the opposite approach in my Retirement Trader service. We use options to reduce the risk of our investments while creating returns that don't exist for other investors. Today, I'm going to show you the right way to use options. If you choose to learn, please read on... If trading options doesn't scare you, does the word 'derivatives'?... Options are considered a type of derivative, a broad term for investments that are based on other investments. With derivatives, you don't invest in an asset. Instead, you bet on a contract that "derives" its value from another. During the 2008 to 2009 financial crisis, you couldn't find a word scarier than derivatives. Remember hearing about those credit-default swaps that nearly blew up Wall Street? Those were derivatives. They were bets that tied their payoff to the default status of mortgage bonds. Perhaps you've read about rogue trader Nick Leeson blowing up Britain's Barings Bank in 1995. He was using derivatives. Or Jérôme Kerviel, who lost 4.9 billion euros for French bank Société Générale with derivatives. And you might recall when a JPMorgan Chase trader known as the "London Whale" cost the financial giant $2 billion in 2012, again due to derivatives. These guys give options and other derivatives a bad name... They used them as a way to load up on risk and leverage, allowing them to make massive bets with little capital up front. Of course, their bonuses depended on taking stupid risks. That has shaped the perception of novice investors regarding options... But it's flat-out wrong. With options, you can make a bet on whatever sort of market activity you expect. A typical investor has two ways to play the market: He can buy stocks he thinks will rise or short the stocks he thinks will fall. An options trader adds several more tools to his bag: He can bet that stocks will rise, fall, stay the same, move within a certain range, rise then fall, and just about everything in between. Options can be used to increase leverage and risk or, just as easily, to reduce it. But most investors do it the wrong way... The standard options pitch goes something like this... Let's say you think a $20 stock is going to rise. Well, you could buy 100 shares for $2,000. If the stock rises to $25, then you'll have $2,500... a profit of $500 that gives you a 25% gain. Instead, you can buy a call option on that stock for just $150. Since each option contract represents 100 shares of stock, your $2,000 investment now lets you "control" 1,300 shares (via 13 call options) instead of 100. Based on the pricing of this particular option, if the stock rises to $25 within the month, it might turn your $2,000 into $3,250. That's a 62.5% return. And your gains quickly multiply with every penny the underlying stock moves higher. Phew! Who wouldn't be interested in boosting returns like that? The trouble comes with the first assumption. You may think a stock is going to rise, but when you trade options like this, you make a leveraged bet that a stock will make that move in a very specific period of time. No matter your investing prowess, you're going to get that wrong most of the time. And when you get it wrong as an options buyer, you'll likely lose your entire investment. People who learn to use options this way often lose their shirts on the first trade and quickly give up. We have a better way... At Stansberry Research, we love to earn higher returns, but we know that true investment success comes from obsessing over risk. In my newsletters, that's what we do all day long. At our different publications, we reduce our risk by employing the best analysts, focusing on quality and value, monitoring our position sizing, using bonds and other nontraditional investments, and using options to custom tailor our returns. In Retirement Trader in particular, our focus on risk lets us consistently make gains month after month, keeping our capital growing... and keeping our subscribers in the market. We do it by doing the exact opposite as the folks who lose money trading options. Let me ask you a question... Is poker a game of skill or chance?... On one hand, you need to get great cards. You can make all the right moves but still end up busted by a straight flush. On the other hand, making careful moves and controlling your risk tends to pay off in the end. People argue over poker because it's hard to prove that skill beats luck. Over any single game, month of games, or even years, the best player can lose. But here's the question that settles it for me: Can you sit down at a poker table and intentionally lose all your money? That's a stupid question, right? Of course you can. The reason poker is a challenge is that everyone is pursuing the same strategies and the same ultimate goal. That competition makes any edge held a small one. But when you take the opposite strategy as everyone else... it's easy to succeed. My options strategy makes it easy to reach your goal... Now, obviously, we're all about making money. My options strategy flips the game so that we're the only ones playing a certain way. Here's what I mean... Most individual traders buy options. And most of the time, they lose money. Instead, we sell options... And we almost always make money. Over more than a dozen years, 94% of our positions have ended up winners. That's the key to our strategy. Selling something you don't own sounds like an impossible arrangement. But it's just the vocabulary that makes it confusing. Tomorrow, I'll explain how we sell options and how it allows us to earn real cash returns on stocks. If you knew you could make double-digit returns in stocks... while reducing your risk... and could do so even if the market goes nowhere for the next few years... would you take an hour to learn how? My bet is you would. The only thing holding you back is what I call "options baggage." Options trading looks difficult, and many people have traded options improperly in the past and lost money. Drop that baggage... Keep an open mind, and I promise to show you that absolutely anyone can learn how to make conservative, risk-reducing options trades. I've shown thousands of people how to do it over the years from all walks of life, even my own mother. And I've used this strategy myself to generate income and pay everyday living expenses. Most recently, I sat down with a professional golfer, Kevin Kisner, to show him how to do it in his own brokerage account. Kevin had no prior experience trading options, but he can confirm it's a cinch. We recorded the whole thing in a real-money demo that you can watch right here – for free. As I explained to him, this is the exact opposite of the kind of conventional options-trading strategy most people have learned or been burned by... I walked Kevin through a real-life options trade designed to collect safe "income from nowhere" – specifically, nearly $4,000 in just 60 seconds on a company you've likely heard of. And in the video, I'll even give you a free recommendation to try this style of options trading yourself. Click here for the full details, and I will be back tomorrow evening to close out my guest appearance here in the Digest and explain more about how exactly to use this strategy in your own portfolio.
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 FBI Fraud Adviser: 'Sell META Immediately' As millions of investors continue to pile into artificial-intelligence stocks like Mark Zuckerberg's Meta Platforms (META)... one highly respected forensic accountant just sounded the alarm – and named THREE popular stocks he's urging you to dump right away. It's all because of a stock market manipulation scheme he's warning will fool millions of investors this year. See his evidence right here. | | |
New 52-week highs (as of 8/1/23): Adobe (ADBE), Aehr Test Systems (AEHR), Applied Materials (AMAT), Atkore (ATKR), Booz Allen Hamilton (BAH), Berkshire Hathaway (BRK-B), Dice Therapeutics (DICE), iShares U.S. Home Construction Fund (ITB), MSA Safety (MSA), MasTec (MTZ), Parker-Hannifin (PH), TFI International (TFII), and Textron (TXT). In today's mailbag, feedback on my Digest yesterday about trading options... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "One very important point I think I'd add to Doc's pitch about using options is this: "I'm a very big user of options; Puts when I am not afraid to buy a certain stock at a lower price and calls when I want to hold onto a stock but I also want to juice my return over the long haul. Here's the point I want to make though... every time I sell an option, that money, AND the restricted balance, (in the case of a put sale), earns interest in my money market settlement account. I don't think a lot of people think about that part but it can be a huge advantage to safe returns that many times beat the overall S&P. "I confess that I have learned this through Stansberry." – Subscriber Rob W. Here's to our health, wealth, and a great retirement, Dr. David Eifrig, MD, MBA
Baltimore, Maryland
August 2, 2023
Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios | Stock | Buy Date | Return | Publication | Analyst | MSFT
Microsoft | 11/11/10 | 1,222.9% | Retirement Millionaire | Doc | MSFT
Microsoft | 02/10/12 | 1,055.5% | Stansberry's Investment Advisory | Porter | ADP
Automatic Data Processing | 10/09/08 | 887.1% | Extreme Value | Ferris | wstETH
Wrapped Staked Ethereum | 02/21/20 | 703.9% | Stansberry Innovations Report | Wade | HSY
Hershey | 12/07/07 | 557.2% | Stansberry's Investment Advisory | Porter | WRB
W.R. Berkley | 03/16/12 | 544.5% | Stansberry's Investment Advisory | Porter | BRK.B
Berkshire Hathaway | 04/01/09 | 524.6% | Retirement Millionaire | Doc | AFG
American Financial | 10/12/12 | 415.6% | Stansberry's Investment Advisory | Porter | TTD
The Trade Desk | 10/17/19 | 355.6% | Stansberry Innovations Report | Engel | FSMEX
Fidelity Sel Med | 09/03/08 | 319.5% | Retirement Millionaire | Doc | Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.
| Top 10 Totals | | 4 | Stansberry's Investment Advisory | Porter | | 3 | Retirement Millionaire | Doc | | 2 | Stansberry Innovations Report | Engel/Wade | | 1 | Extreme Value | Ferris |
Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio | Stock | Buy Date | Return | Publication | Analyst | wstETH
Wrapped Staked Ethereum | 12/07/18 | 1,602.5% | Crypto Capital | Wade | ONE-USD
Harmony | 12/16/19 | 1,068.7% | Crypto Capital | Wade | POLY/USD
Polymath | 05/19/20 | 1,044.7% | Crypto Capital | Wade | MATIC/USD
Polygon | 02/25/21 | 809.2% | Crypto Capital | Wade | BTC/USD
Bitcoin | 11/27/18 | 689.6% | Crypto Capital | Wade | Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio.
Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios | Investment | Symbol | Duration | Gain | Publication | Analyst | | Nvidia^* | NVDA | 5.96 years | 1,466% | Venture Tech. | Lashmet | | Band Protocol crypto | | 0.32 years | 1,169% | Crypto Capital | Wade | | Terra crypto | | 0.41 years | 1,164% | Crypto Capital | Wade | | Inovio Pharma.^ | INO | 1.01 years | 1,139% | Venture Tech. | Lashmet | | Seabridge Gold^ | SA | 4.20 years | 995% | Sjug Conf. | Sjuggerud | | Frontier crypto | | 0.08 years | 978% | Crypto Capital | Wade | | Binance Coin crypto | | 1.78 years | 963% | Crypto Capital | Wade | | Nvidia^* | NVDA | 4.12 years | 777% | Venture Tech. | Lashmet | | Intellia Therapeutics | NTLA | 1.95 years | 775% | Amer. Moonshots | Root | | Rite Aid 8.5% bond | | 4.97 years | 773% | True Income | Williams | ^ These gains occurred with a partial position in the respective stocks.
* The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. | 
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