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Selected Analysis and Commentary

The Options Professor

The Options Professor is a weekly Spear publication that provides both long-term and short-term option strategies, including a Play of the Week, a monthly in-depth issue, PLUS regular option alerts on open plays.

  • Options Professor Volume 6, Number 6
    Tuesday, June 16, 2009    Full Article

    On Monday the Dow declined almost 200 points and broke through the lower support level of a narrow consolidation band in which it had been trading.  We expect that many market participants were a bit shaken by the sudden decline.

  • Bear Market Rallies
    Thursday, May 14, 2009    Full Article

    Bear market rallies are rockets with two engines. One is fueled by the forced buying from skeptics who are short. Most of these bears are professional hedge fund managers who have been short for a long while and can recognize...

  • Cheap Stocks
    Tuesday, April 7, 2009    Full Article

    In a matter of a few days, gold has gone from flash to trash. The surrogate currency has fallen 6% in the last three days, closing at $852 on Monday. Blame the co-operative and hopeful spirit at the G20 along with hints from the IMF that it may sell some of its 400 tons of gold to raise cash for Emerging Market loans.

  • The Fed To The Rescue
    Thursday, March 19, 2009    Full Article

    The Fed lowered a key interest rate on Wednesday, but it wasnt the Fed funds rate, which remains near 0%. Rather, the announcement that the Fed would buy $300 billion of long-term treasuries and an additional $750 billion of mortgage...

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Everyone a Winner?

In traditional stock investing, at least in theory, everyone can be a winner, because over a multi-year period, the market as a whole has always gained in value. Someone doesn't have to lose for someone else to win. The "rising tide" of the market as a whole can "lift all boats."

Options, however, are a zero-sum game. For every winner, there must be a loser. Actually, there may be more losers than winners, after brokerage and market-maker commissions are considered.

This is why options traders need the advice of a professional service like The Options Professor.

The Options Professor takes advantage of many years of research and testing performed by Independent Investor on selecting the right underlying securities and selecting the right time frame and direction in which to place our trades. This is much more than half the battle in successful options trading.

Option plays contain inherent risk, are not recommended for inexperienced traders and are unsuitable for most investors. If you are have sufficient risk tolerance to play, however, the rewards can be considerable. Please consult a financial professional regarding appropriate investments for your portfolio before investing with options.

 

Make Money in Up or Down Markets With Options

As an investor, why should you consider options? The answer is that options offer the potential to greatly enhance your profit from investing in stocks and/or provide the means to protect your portfolio.

Simply put, options give you the ability to leverage a trade - and it doesn't matter if the market is going up OR down! That's a huge advantage over buying stocks.

Suppose you buy a stock for $30 a share and it goes to $33. The stock price has risen by 10% and accordingly you have a 10% profit. That's nice!

What would have happened if you purchased an option instead of a stock? Here's where the "leverage" comes in.

If instead of buying the stock, you buy an appropriate option, then you might make 150% profit or even more for the same 10% rise in the stock price. That's better than nice. That's fantastic!

Sign up now for a risk-free trial to The Options Professor and get started right away!

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