Today I will list the trading rules for the new strategy that has made an average 6.4% gain every week since we set it up in early December.
More importantly, we are repeating of our offer of becoming an Insider for the lowest price we have ever offered.
Trading Rules for New 5%-a-Week Strategy
Our goal is to make 5% a week. Admittedly, that sounds a little extreme. But we did it for the first 3 weeks we tried it in a real account. In fact, we gained an average of 6.4% after commissions.
We call it the STUDD Strategy. STUDD stands for Short Term Under-Intrinsic Double Diagonal. How’s that for a weird acronym?
Here are the Trading Rules:
1) Purchase an equal number of deep in-the-money (5 – 8 strikes from the stock price) puts and calls for an expiration month which has 3 to 7 weeks of remaining life.
2) At the same time, sell the same number of at-the-money or just out-of-the-money Weekly puts and calls.
3) Make the above purchases and sales at a net price which is less than the intrinsic value of the long options. (Intrinsic value is the difference between the strike prices. For example, we purchased IWM January-12 70 calls and 80 puts, and the intrinsic value of these two options will be at least $10 no matter where the stock ends up. We paid a net $9.46 for the initial spreads, and as long as the short options are out of the money, the long options will eventually be worth at least their intrinsic value of $10). Any out-of-the-money premium collected in subsequent weeks would be pure profit.
4) During the week, if either of the short Weekly options become over $1 in the money, buy them back and replace them with another short option which is 2 strikes higher or lower (depending on which way the stock has moved). Move both short Weekly options by 2 strikes in the same direction, one at a debit (buying a vertical spread) and one at a credit (selling a vertical spread). The net amount that the two trades cost will reduce the potential maximum gain for the week.
5) On the Friday when the Weeklys expire, buy back the short Weeklys and sell next-week Weeklys at the just out-of-the-money strike price for both puts and calls.
6) On the Friday when the original monthly options are due to expire, close out all the positions and start the process over with new positions.
There will invariably be some variations to these trading rules. For example, instead of selling just out-of-the-money Weekly options, we might sell some which are a dollar more than the just out-of-the-money strike. We also might close out the original monthly options a week before the final Friday if they can be sold for appreciably more than the intrinsic price (the more the stock has moved during the month, the higher above the intrinsic value the options will be able to be sold for).
This all may seem a little confusing right now, but if you decide to make a serious investment in your financial future, it will all become clear as you can watch how an actual portfolio (or two) unfolds using these trading rules for the next two months as a Terry’s Tips Insider.
As our New Year’s gift to you, we are offering our service at the lowest price in the history of our company. We have never before offered a discount of this magnitude. If you ever considered becoming a Terry’s Tips Insider, this would be the absolutely best time to do it.
So what’s the investment? I’m suggesting that you spend a small amount to get a copy of my 70-page (electronic) White Paper, and devote some serious early-2012 hours studying the material.
And now for the Special Offer – If you make this investment in yourself by midnight, December 31, 2011, this is what happens:
For a one-time fee of only $39.95, you receive the White Paper (which normally costs $79.95 by itself), which explains my two favorite option strategies in detail, 20 “Lazy Way” companies with a minimum 100% gain in 2 years, mathematically guaranteed, if the stock stays flat or goes up, plus the following services :
1) Two free months of the Terry’s Tips Stock Options Tutorial Program, (a $49.90 value). This consists of 14 individual electronic tutorials delivered one each day for two weeks, and weekly Saturday Reports which provide timely Market Reports, discussion of option strategies, updates and commentaries on 8 different actual option portfolios, and much more.
2) Emailed Trade Alerts. I will email you with any trades I make at the end of each trading day, so you can mirror them if you wish (or with our Premium Service, you will receive real-time Trade Alerts as they are made for even faster order placement or Auto-Trading with a broker). These Trade Alerts cover all 8 portfolios we conduct.
3) If you choose to continue after two free months of the Options Tutorial Program, do nothing, and you’ll be billed at our discounted rate of $19.95 per month (rather than the regular $24.95 rate).
4) Access to the Insider’s Section of Terry’s Tips, where you will find many valuable articles about option trading, and several months of recent Saturday Reports and Trade Alerts.
5) A FREE special report “How We Made 100% on Apple in 2010-11 While AAPL Rose Only 25%“.
With this one-time offer, you will receive all of these benefits for only $39.95, less than the price of the White Paper alone. I have never made an offer anything like this in the eleven years I have published Terry’s Tips. But you must order by midnight on December 31, 2011. Click here and enter Special Code 2012 (or 2012P for Premium Service – $79.95) in the box to the right.
Investing in yourself is the most responsible New Year’s Resolution you could make for 2012. I feel confident that this offer could be the best investment you ever make in yourself.
Happy New Year! I hope 2012 is your most prosperous ever. I look forward to helping you get 2012 started right by sharing this valuable investment information with you.
P.S. If you would have any questions about this offer or Terry’s Tips, please call Seth Allen, our Senior Vice President at 800-803-4595. Or make this investment in yourself at the lowest price ever offered in our 8 years of publication – only $39.95 for our entire package – http://www.terrystips.com/track.php?tag=2012&dest=programs-and-pricing using Special Code 2012 (or 2012P for Premium Service – $79.95).