“Superleverage, it’s the only sensible way to speculate.”
— Paul Sarnoff
With Comic-Con in town, this struck me as a natural subject. Superleverage is the art of profiting from changing prices, with limited risk AT ALL TIMES, without ever getting a margin call, asked to put up additional funds, or forced to liquidate your position.
The instruments of Superleverage are exchange traded put and call options.
Buyers of puts and calls are the ONLY ONES who possess the full profit power of Superleverage.
The Superleverage power of our method was on display again today, as our call on Barrick Gold Corp. (GOLD) closed +296% in a month, with an always known and strictly limited risk!
The underlying shares have made a nice move, from $13.89 to $17.35, propelling our recommended GOLD September $14 call option from $85 to $337!
If this is the type of options action you’re looking for, subscribe to Options Hotline today.
Manute Bol and Tyrone “Muggsy” Bogues, 1987 h/t Jerry Wachter/NBAE/Getty images
“Not only your returns but also your risk of ruin is dependent on your position sizing. Your risk exposure determines your long-term results regardless of how good your trading method is.”
— Steve Burns, @SJosephBurns
Proper position sizing is based on your psychological and financial tolerances for risk. And that differs for each individual trader.
Photo credit: Paperny Entertainment
“Finding winners, especially big winners, is a process of discovery. The losing trades are an integral part of that process.”
— Peter Brandt, @PeterLBrandt
Our recommended call option on Barrick Gold (GOLD), triggered 06-17-19 at $85, traded this morning at $280, +229% in less than a month, with an always known and strictly limited risk!
If that’s the type of options action you’re looking for, subscribe to Options Hotline today.
Peaks of Mount Kenya, h/t Chris73/Wikimedia Commons
“I made up my mind to buy high and sell higher.”
— Nicolas Darvas
“When a flower doesn’t bloom, you fix the environment in which it grows, not the flower.”
— Alexander den Heijer
“When the archer misses the center of the target, he turns around and seeks the cause of his failure in himself.”
Enjoy a Happy July 4th holiday!
Under the Wave off Kanagawa by Katsushika Hokusai, ca. 1830-32
“Vision without action is a daydream. Action without vision is a nightmare.”
— Japanese proverb
“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”
— George Soros
Money management may be the most important factor in successful speculation. A good money management plan is different for each individual.
Developing a sound approach to money management is often the overriding determinant of survival and success or failure in the market.
“The courage to press on regardless of whether we face calm seas or rough seas, and especially when the market storms howl around us is the quintessential attribute of the successful investor.”
— John “Jack” Bogle
For 30 years and counting, Options Hotline’s focus is on sensible speculating more than investing.
Courage, along with knowledge, discipline, and hard work is a key characteristic of successful traders, as well as investors.
“Nothing important comes into being overnight; even grapes or figs need time to ripen. If you say that you want a fig now, I will tell you to be patient.”
Patience tends to pay.