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Lowest Subscription Price Ever:
As our birthday present to you, we are offering the lowest subscription price than we have ever offered – our full package, including all the free reports, my White Paper, which explains my favorite option strategies in detail, and shows you exactly how to carry them out on your own, a 14-day options tutorial program which will give you a solid background on option trading, and two months of our weekly newsletter full of tradable option ideas. All this for a one-time fee of $39.95, less than half the cost of the White Paper alone ($79.95).
For this lowest-price-ever $39.95 offer, click here, enter Special Code 15Year (or 15YearP for Premium Service - $79.95). The premium service offers you real-time trade alerts so you can follow along with our trades if you wish, or participate in Auto-Trade at thinkorswim.
This is a time-limited offer. You must order by Wednesday, June 15, 2016. That’s when the half-price offer expires, and you will have to go back to the same old investment strategy that you have had limited success with for so long (if you are like most investors).
This is the perfect time to our 15th birthday with us, and give yourself and your family the perfect birthday gift that is designed to deliver higher financial returns for the rest of your investing life. It may take you a little homework on your part, but I am sure you will end up thinking it was well worth the investment.
Subscription A Conservative Nike Trade Which Should Gain 60% in 8 Months:
Timing is everything. The price of Nike (NKE) was beaten down last week, apparently on the news that one of their largest retailers, Sports Authority, had declared bankruptcy and was conducting a going-out-of-business sale. I believe that this news has unfairly impacted the price of NKE. After all, people will continue to buy NKE shoes. It just won’t be at Sports Authority.
NKE has been doing very well lately. It has had 4 consecutive spectacular quarters, exceeding estimated earnings by a wide margin each time, yet it is trading very near the low for the year, down 20% from its high reached in December. In that month, there was a 2-for-1 stock split, and this often results in a lower stock price over the subsequent few months (apparently, a fair number of people sell off half their stock so they retain the same number of shares they had before the split, with most or all of their original investment back in their pocket). The same thing happened to Google when it split its stock a few years ago – it was lower at the end of the year than it was at the beginning, the only time in its first 9 years of existence that that happened.
NKE is trading about $54 today. If you believed that this was about as low as it might go, you might make a 5-month bet that it won’t be trading below $52.50 when the 21Oct16 options expire. You would make 50% on your money (after commissions) if you bought 21Oct16 50 puts and sold 21Oct16 52.5 puts, collecting $.86 and risking $1.64 if the stock falls below $50 by that time (using the commission rate charged to Terry’s Tips subscribers at thinkorswim - $1.25 per contract).
This trade, executed as a vertical put credit spread, would put $83.50 in your account. Your broker would assess a maintenance requirement of $250. Subtracting out the $83.50 you received, the net amount the trade would cost you would be $166.50. This is also the maximum loss you could possibly incur. It would come along only if NKE fell below $50 on October 16th. If NKE is at any price above $52.50 on that date, both put options would expire worthless and you would not have to make another trade to close out your positions (saving you commissions on that end of the trade).
An even safer bet could be made by trading those same strikes for the 20Jan17 series where you could collect $.96, risk $1.54, and make 60% on your investment (and maximum loss) if NKE closes above $52.50 in January. Not only is the gain greater, but you have an extra quarter (including the Christmas selling season) to watch NKE grow (or at least not fall).
I consider this to be a conservative investment because I believe NKE has had its price unfairly pushed lower because of the Sports Authority bankruptcy and is selling near the low for the year in spite of exceeding earnings estimates every quarter for the last year. The stock does not have to go up a penny to make 60% on this trade. All it has to do is not fall by more than $1.50 by January 20, 2017. I think it is highly likely to be trading safely higher than $52.50 at the time.
As always, you should only invest money in stock options if you can truly afford to lose it. Options are risky, and while potential gains can be far greater than conventional investments, they usually incur a greater degree of risk (although in the above case, I like the odds when a stock is unfairly downtrodden and doesn’t have to go up a penny to guarantee a gain on the trade).
Happy trading,
Terry
P.S. For this lowest-price-ever $39.95 offer for the complete Terry’s Tips package (including my White Paper for which over 10,000 people have paid our regular price $79.95), click here, enter Special Code 15Year (or 15YearP for Premium Service - $79.95). It could be the best investment decision you ever make.
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Any questions? I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts. seth@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Seth@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you for our Premium Service package ($119.95 value plus an extra 4 months of our Premium Service, valued at another $190.80). You get $300.65 worth of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
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