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HOW TO GET 100% RETURNS IN A 10% WORLD

Learn everything you need to know
in three to five days

[Book Cover]

Dear Investor,

The truth is that the world of investing is barely a 10% world. Look at the facts:

  • History shows us that real estate returns 11.1% a year...

  • Stocks will give you 10.3% a year over the long haul (Standard and Poor's 500 total return, price gains plus dividends)...

  • You'll get 4.8% a year with Treasury Bonds (U.S. Government Long Bonds)...

  • And 3.7% a year with Treasury Bills...

  • And in the past couple of years, since the bull market stalled, it's been hard to get good returns at all.

But there is a way -- for people who understand how it works -- to ratchet up the percentages drastically.

I'm talking about a way to turn 10% returns into 100% returns...time after time.

The way to do this is through the use of options -- a powerful tool that sophisticated investors use to leverage their money.

Imagine an account worth $70,000 one day and over $1 million the next. I have seen this happen, on more than one occasion, and all from the use of options.

But this type of leverage is impossible to achieve through stocks alone.

If you understand how options work, you can do this yourself. Even the most basic options strategies have tremendous power, because they give you the right -- but not the obligation -- to buy a certain stock at a certain price. And for a specific period of time you can buy the stock at that price, no matter how much it's moved up from that price.

Limited loss....unlimited profit potential

Take a simple "call" option, for example. Let's say an investor pays $3 per share for the right to buy a stock at  $50. This is a "call" option. Now, no matter what happens, the most the investor can possibly lose is that $3. Here's how it works:

A stock price of $50 or below produces a $3 loss, while a stock price above $53 produces the profits of the option. If the stock closes at $55 dollars during the term of the option, for example, the $50 call will be worth exactly $5 at expiration. The investor now has a 66% profit. If you plot these results on a chart, you get the following picture:

[Chart 1]

As you can see, this option can never lose more than the $3 investment, but the upside is unlimited. As the stock rises, the option pays off more and more.

This is where the true value of options lies -- limited losses and unlimited profit potential. But there are very clever "combination" strategies you can learn that can pay off with even greater returns in the same period of time. Let me give you a real-life example...

Powerful "combination" strategies can make money on a rise and fall in a stock price

An investor I was advising had put together an options strategy for a stock called MicroStrategy. Using an advanced combination strategy called a "straddle," he was putting money on his belief that MicroStrategy was going to fall. But he took out some "insurance" at the same time, just in case it went up...

He took his position in early 2000. If you look at the chart below, you can see that it looked like the stock was starting to break down after a tremendous run, all the way from $18 to $180. He figured it was about to crash, and crash hard.

But he didn't want to bet the farm on it.

So he bought one option that would pay off if the stock crashed (going "short"). But just in case it went higher, he bought another option that would pay off if the stock went up (going "long").

Well, it was a good thing he did, because the stock did exactly the opposite of what he expected. It surged again, hitting a high of $333 on March 10. And when it broke $300, this investor closed out his "long" position with tremendous profits. But instead of cashing out of everything, he held on to his short position. "Who knows," he thought. "It could still crash."

Bingo. It did. MicroStrategy tumbled all the way to $63 on March 21. And the investor closed his short position on the last day with more huge profits from the down leg of the trade.

Here's how it looked:

[Chart 2]

Now, ordinary investing would have had him stay out of the stock, thinking it was going to go down. Or if he had thought it was going to go up, and he'd bought, he'd have lost money buying and selling at the same points.

Far greater returns than conventional investing

But by using options, he made 10 times what he would have made on the increase in the stock alone, and also cleaned up on the fall of the stock.

That's the power of options. It's all about leveraging your investments.

Let me introduce myself. My name is Bill Johnson, and I've spent nearly nine years actively trading options. Many of those years were with the brokerage firm that clears over 40% of all option trades -- more than any other firm.

I've had firsthand experience advising and trading for investors, speculators and fund managers from around the globe, and I've seen what works and what doesn't.

And I'll tell you this:

Most investors don't understand options at all. They think that trading options is like gambling, or that it's very risky.

The truth is that options were created to insure against risk. Their purpose is to protect the investor.

It's just that a few wild gamblers have given options a bad name. Fact is, you can use options very conservatively and even simply to protect your investments. Let me show you what I mean...

Options were created to prevent risk

Let's say the market is in a bull phase. Naturally, most of your investments are geared toward the market going up...lifting your portfolio as it does.

Sensible.

But what happens if the market takes an unexpected turn, like the famous "tech wreck" a couple of years ago? Or when the Dow reversed its long bull run and plunged in 1998 and 2000?

Investors who were positioned simply to follow the markets got clobbered. The losses were staggering.

But savvy investors who bought a little "insurance" -- options that paid off in multiples if the market reversed -- were very well protected. They may even have turned a profit while the market plunged.

Or what if the market is in a bear market pattern? And investors are positioning themselves defensively; then suddenly the market rallies -- moving against them?

Well, the savviest investors don't just pick stocks that play the general market movement -- they also protect this position with a few options that will pay off in spades if there's a sudden market rally.

And everyone knows the market can surge or tank with good or bad news.

Protect yourself -- and even profit -- when stocks crash

Same with individual stocks. What happens if a particular stock you've bought plunges on bad news? Like in August of 2000, when Eli Lilly plunged more than 31% because a court ruling allowed the marketing of generic Prozac to speed up. Look what happened:

Eli Lilly Stock Plunges on Bad News

[Chart 3]

Investors got crushed. Or a month later, when Apple Computer dropped by more than half because of poor 4th-quarter earnings estimates:

Apple Computer Stock Drops More Than 50%

[Chart 4]

Imagine those losses. If you were holding $50,000 worth of Apple stock, you lost over $25,000 in one whack. And don't think that stop losses always protect you.

In situations like these, a sell order may be activated well below a stop loss you've set. For example, you can have a sell order on a stock at $58. The stock can close at $58-1/2 one day, and you still own your shares. But it can open the next day at $40 on negative news. Your stop limit of $58 is now triggered and you will be sold at $40 -- $18 less than your stop price of $58.

One of the worst cases I ever witnessed was a client who placed a stop order on 3,000 shares of a "dot-com" stock trading around $120. This investor bought the shares around $100, and had a stop loss at $110 to "protect" his profits. But the stock price started to evaporate one afternoon, with each tick falling 1/2-point or more. Once his stop price was triggered, it became a market order, which sat in line behind a stack of tickets with the market maker, waiting to be filled. He got his confirmation back with the 3,000 shares filled at $87!

The $30,000 profit he thought he was protecting turned out to be a $39,000 loss!

Or look at these losses:

  • Priceline.com dropped 42% on 3rd-quarter estimates...

  • Xerox fell 26% when figures for declining sales and 3rd-quarter losses were released...

  • Eastman Kodak fell 25% on profit warnings...

  • Intel fell 22% on revenue warnings...

  • And Lucent fell 23% on 4th-quarter earnings estimates...

All of these were situations where options -- used for safety -- would have protected investors; and where people who anticipated the problems could have raked in huge profits. Speaking strictly from an investment standpoint, the profit power of options is staggering. Take a look at these figures from recent options moves:

  • Investors who bought Accredo Health (ACDO) calls on December 19, 2001 for $2.50 walked away 21 days later with a 540% profit!

  • Fuelcell Energy (FCEL) had options trading for $0.76 on December 21, 2001, which were worth $5.90 only 19 days later -- a 676% increase!

  • Circuit City calls were trading for $1.65 around Sept. 17, 2001. Just 114 days later those same options were worth $20.30 -- a 1,130% gain!

Plus, options contracts are usually highly liquid, which means there are many buyers and sellers standing by. You can buy an option contract with the same speed it takes you to call your broker and buy stock.

Options are truly the way to create a 100% world out of a 10% world. But until now, it's been difficult for the average investor to learn how to trade options like a pro.

Not any more.

Now there's a way to learn everything you need to know to begin capturing profits that are ordinary for Wall Street insiders.

I've written a new book that's perfect for options investors -- even those who've never used options before. It's called "An Investor's Guide to Understanding and Mastering Options Trading: Generating Steady Profits of 100% in a 10% World"...and it's the greatest book you'll ever find to learn how to use options like a pro.

So simple, you'll learn everything you need to know in three to five days...

You see, this book is unique -- you will learn the ins and outs of options from a perspective different than most others.

It's been my experience that most books written about options are either from the academic side or the market-making side -- neither of which apply to the retail investor. None of these books show you the in-depth side of the strategies involved with retail investing.

As a result, it's difficult for the average investor to learn from them. But I've approached it differently. I've written this book for the average investor -- not the academic or market maker.

My new book on options makes it all so easy; I guarantee you'll be amazed. It will guide you from basic knowledge to advanced strategies very quickly. Now people can learn everything they need to know in just three to five days. You'll learn:

  • Basic and intermediate options foundations -- what options are and how they work. Once you grasp these fundamentals, you're on your way...

  • How to use calls -- the most basic of options strategies -- for limited risk and unlimited profit potential...

  • How to use puts to reap huge profits even when the markets or particular stocks are dropping like stones in a pond...

  • Why you don't have to worry about margin (and those nasty "margin calls" you hear about)...

  • A simple way to determine the fair price of any option, created by a Nobel prize-winning economist...

  • The secret of Deltas and Gammas -- how certain factors affect options pricing and value...

  • The basics of combination strategies: I take the theories behind these complex strategies and make them remarkably simple to understand...

  • Every useful, hugely profitable combination strategy there is -- explained in detail and easy to understand -- like straddles, covered straddles, strangles, strips, straps, the covered call (and the one danger most investors don't recognize), rollups and rolldowns, buy-writes and sell-writes, bull and bear spreads, the box spread, the equity collar, the butterfly spread, and the iron butterfly...

  • A very sophisticated strategy known almost exclusively to professional traders. It's called the option repair strategy, and it's designed to take you out of a losing position at breakeven or better. Most investors bail out when they suddenly find themselves down 20% on a stock. But with this simple strategy you'll know how to recoup those losses, quickly and easily...

Plus, I'll answer all your questions along the way. And you'll get a glossary with options terms you need to know.

This information you'll learn is easily worth $5,000 to $10,000 dollars. That's what most pros charge to teach you information that isn't even really geared toward the average investor.

Plus, it's completely possible to make that much on a single options trade.

But I'm not going to charge you $10,000...or $5,000...or even $500.

Try it for 30 days FREE!$10,000 dollars worth of knowledge for pennies on the dollar...

You can have "An Investor's Guide to Understanding and Mastering Options Trading: Generating Steady Profits of 100% in a 10% World" (book and workbook) FREE for 30 days!

I'll send you the book and workbook for just the shipping and handling charge of $9.95. After the 30-day FREE examination period, if you keep the books you'll be charged just $99 -- an incredible $596 off the retail price of the books.

Ridiculously cheap.

What's more -- I'll even guarantee that you're satisfied. If you're not, simply return it within 30 days and I'll refund every penny of your money -- no questions asked.

How can you lose?

Plus, I'll give you something that's absolutely invaluable.

I'll include a workbook that ensures you've got every single aspect of options nailed down. You'll find a condensed summary of every important aspect of options, followed by questions, drills, and real scenarios... everything you need to completely master options.

And probably the best part is where you'll learn how to "map" the profit and loss potential in any options trade. I'll show you how to make a table of the trade, and then draw a profit and loss chart for the trade -- just like the one at the beginning of this letter.

Not only will I show you step by step, but I'll show you how to do this for combination strategies. Once you can do this, you'll be light years ahead of the average investor.

Remember, there's incredible power for leveraging your investments in options. It's really the only way to get 100% returns in a 10% world.

And as I pointed out earlier, if you refuse to use options, you are really just speculating.

As we've shown, options were created as hedging tools. Whenever you hedge, you take out protection against a stock moving against you. So if you buy stock and refuse to buy or sell options, you are speculating that nothing will go wrong with your stock position.

Options give you the ability -- for a few dollars -- to profit if your stock goes the other way than you hoped.

Additionally, you can use options to generate huge profits when you're fairly sure a stock is going to make a strong move.

So why not send for my book and workbook on options? As I said, you'll learn everything you need to know to start trading options like a pro within a few days.

And if you're not happy, I'll refund every penny.

Why not order today and see for yourself?

You won't be disappointed.

Sincerely,

[Signature]

Bill Johnson, Editor
21st Century Options Education

Try it for 30 days FREE!
Pay $9.95 shipping and handling only*

I'll send you the book and workbook for just the shipping and handling charge. After the 30-day FREE examination period, if you keep the books you'll be charged just $99 -- an incredible $596 off the retail price of the books.

Use the button below to order online. Your credit card will be charged just the shipping and handling ($9.95) now and not a single penny extra for 30 days. Then once you've had 30 days to examine the book and workbook I'll charge you just $99! You save $596!

If you're not thrilled, send the book and workbook back within 30 days, and we won't charge you for them. But I know once my book and its companion workbook land in your hands, nothing is going to pry them loose. Nothing!

To place your order with a live person, call 1-800-931-9137 or 1-561-750-6717 and mention adcode webi0010.

*Shipping and handling charges are not refundable. International shipping charge is $20.00. FedEx USA Overnight is available for $25 and again is not refundable. Florida residents add 6.5% sales tax. Sorry, we do not deliver to P.O. boxes.

Important Disclosures

All profit examples are hypothetical. Actual results can and do vary based on day of execution and commission charges and can be directly tied to market conditions and competence of the investor/speculator making the trades. 21st Century Investor Publishing, Inc. publishes books and online training courses that are intended for purely educational purposes. There is no guarantee of results.

There is a very high degree of risk involved in trading options, single-stock futures, gold and equities. Past results are not indicative of future returns. 21st Century Investor Publishing, Inc. and all individuals affiliated with 21st Century Investor Publishing, Inc. assume no responsibilities for your trading and investment results.

 

 

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