Thousands of cash premiums could be yours every month; it’s like owning a business without any of the hassle…
- Enjoy a steady cash flow each month just like owning a healthy, income-generating business…
- It’s easy to set up… and it only takes about 15 minutes a week to keep those juicy cash premiums rolling in…
- Best of all, it’s totally recession proof. It doesn’t matter if the market’s up, down or sideways… You’ll get your cash premium no matter what!
- Your first opportunity to collect $800 is waiting!
Well that’s how Lee Lowell gets us started with his intro to his Instant Money Trader newsletter, sounds too good to be true NO! Yes it’s yet another,luscious advertising spiel, from Lee Lowell, an Options Trading newsletter that is intensely peddling Lee Lowell’s option trades.
What then is the specific idea behind this luscious sales spiel, let us find out.
We are conducting an Opinion poll, asking you to help us identify value of this ad campaign please…
If you are not familiar with the basic concept of options let us go through this first… An option by the way is a contract that gives you the right, sans the obligation, to buy or sell an asset at a fixed price on or before a specified date.
Baffled yet? Let me make it simpler an Option, like a bond or stock is a binding legal contract with strictly predefined terms. The basic arrangement behind an options trade is circumstances we frequently come across, say for instance you have been looking to buy a pre-owned Bentley your dream machine.
The Bentley would cost you $1000000 sadly you don’t have the funds to pay for it right away, consequently you find a seller who gives you an alternative without the obligation to buy the dream machine from him within three months.
You settle on a price ($ 1000000), and the seller consents to this, but for this option you pay him $ 3000 upfront, so fundamentally that is an options trade.
Let us now, reflect on two hypothetical situations that may come up after this trade:
- If the populace comes to know after sometime but within three months, the Bentley you bought is in fact a limited edition masterpiece, the value of the dream machine shoots up. Consequently making your options contract valued.
Since the seller has already closed the deal with you he is obligated to sell you the dream machine for $ 1000000. You end up making a huge profit on a meager investment.
- Or else the second situation might be quite opposite, while taking a second look at your dream machine you find out that it is in fact a worthless piece of junk even though, you at first thought that this was the dream machine you cherished, and now you consider the deal worthless.
You are under no obligation to go through the purchase, and you could let the Options Contract expire, of course you stand to lose your initial investment, the $ 3000 upfront payment you made.
The scenario here exhibits two essential points. When you get into an options trade you have the discretionary right to buy without the compulsion just in case. You can until the end of time let the options trade expire.
The options trade is merely a contract that almost always deals with an underlying asset, in our example its a Bentley, because of this options are called derivatives since it derives its value from the contracted deal, rather than the traded asset itself, although in most instances the underlying asset is a stock or an index.
Again there are two kinds of options Calls and Puts, while the Call Option gives you the discretionary right to buy at a predetermined price before the expiration of the contract. And the Put Option gives you the discretionary right to sell at a predetermined price before the expiration.
Of-course in both cases you are not obliged to exercise the contract and let it expire, even as you have the full right to exercise if the trade turns profitable for you, in theory this is a win-win situation for you, that’s one percent explanation about Options Contracts.
As you would expect there are pros and cons to this kind of trade, the disadvantage being that that most of all the options contracts expire worthless losing the money for you.
The key to making leveraged profits in an options trade is your speculative genius in predicting the future price of the stock, and that’s where folks like Lee Lowell with his Instant Money Trader service get into the scene fully loaded with juggling acumen to speculate on the future of the stock with…
Quotes such as:
Punch in Today’s ‘P.I.N #’: UNY85 And Withdraw Your $750 Instantly
“Virtual ATM” strategy to average $219,600 a year income … without buying or owning anything….
Amuse you but this is basically what he says, a low risk, steady way to generate cash in your brokerage account… let us analyze…
I always welcome any corrective suggestions to improve this review, simply click ‘Suggest Corrections’ to hook up with me, I promise to update any suggestions accordingly.