By jnksak, December 19, 2012
does anyone know if this is another naked put newsletter again?
51 Comments on " stansberry Alpha newsletter"
Can’t be naked put because he is talking of buying calls as well.
You get paid immediately, and it’s options so there has to be selling. On CBI he talks of you’ll do well for the next decade in this stock so there has to be an upside bias. Has to be some sort of calendar spread right? with a short front month and a loooong (takes a year to play out) call. But what is the anomaly, can’t figure that. Says it’s not that rare and happens on lots of blue chip stocks.
I joined a couple of the Stansberry investment letters and have recently been receiving the “Alpha” marketing teaser. As stated above, using the CBI example in the presentation, it would have been more informative to have more clear information, but then, that’s how they get paid. I have learned a great deal of stock market stuff from the Stansberry group, including options strategies, but this one’s a head scratcher for me.
I FEEL “ALPHA” IS A SCAM! The possible profit he talks about does not take into account the 80% you must have to have available if you are required to purchase the stock. I feel it would be much more profitable to buy a good company outright.
I have been trading options for several years and although I have the trading level qualifications for selling naked puts but I haven’t tried them yet. From your comments I assume that a 80% reserve is required for this type of trade.
Depends on the broker — from what I can tell, they all have different margin requirements. In a retirement account (401k, IRA, etc) you have to have 100% cash coverage because margin isn’t allowed. I only use cash-covered puts personally, I’ll take my margin risk elsewhere.
Naked puts are a great strategy buy you have to be willing to take the stock. I’d check with Interactive Brokers, who I use. Their margin requirements are the absolute lowest and so are their commissions. But you will have to be willing to spend some time to learn their trading platform, and if you don’t keep enough margin requirement in your account they will liquidate you in a heartbeat. However, if you check on your account on a daily basis that shouldn’t ever have to happen.
I can’t figure that out either. He is probably just making stuff up to get you to spend $1250 for his newsletter. I wonder if anyone actually bought it that could share?
He is selling naked puts and using proceeds to buy calls in stocks he believes have long term appreciation potential. Same expiration dates and appear to be twelve or more months out. Not exactly revolutionary.
David, Are you stating that “He is selling naked puts….” or are you making an educated guess? Isn’t the act of “selling a put and buying a call” a synthetic long stock position (i.e. but you don’t get any dividends). I would need to review his presentation again, but I am not sure that a “synthetic long” meets all of the criteria that the selling-pitch contains.
i have the daily wealth trader and would be willing to share some ideas if anyone has another publication that they feel is worthwhile and not one of his bad newsletters. this one may be interesting but he claims he is making money and if he is buy long calls out a year how could that be that they are misplaced?
I think you’ve got it, and it depends on on dependable companies.
You want to split the $120? if interested email me at email@example.com and i can give you my number and we can talk.
Interesting…but you are still at risk at expiration if the stock goes against you. Maybe I’m remembering the add wrong but I thought it was a risk free strategy. You can do a vertical calendar spread on any stock that has options…I don’t see what the anomaly is…
But yeah, that seems part and parcel for how they do things – a standard strategy and then relabel things to imply somethign new and revolutionary…
Terry I am going to have to review the ad again. My take on the “15-18% payment” was not that you would “immediately get paid 15-18%”, but instead that you would “immediately get paid 15-18% of your initial investment”. In other words, buy a $100 call, and “immediately get paid $15-$18 of your $100 by selling a higher-strike call”. For what it is worth, I get the impression that you are the type of person I would thoroughly enjoy having financial strategizing discussions with. Hope you have a great holiday season!
That’s funny that you say looks like we could profit from discussing trades…I’ve actually been thinking of trying to get an options “club” together locally but seriously busy. So if you want to: Tearhill@aol.com is how you can reach me. Have been simply buying puts and calls for the last couple of years but have done tons of reading @ CBOE, McMillen, Schaefer, etc and ready to get on to more complex strategies. Send me an e-mail if you want, happy to go over some ideas and receive feedback.
Speculation is the point of the entire website, hello? Anybody home? So you can’t figure that out, you can’t figure out the word projection, meanwhile you mock others income and brag of yours? Lie much? Guys that have it aren’t that insecure.
…all while giving and advertisng plug for the Stansberry newsletter? Yeah, I doubt all of that very much.
In Stansberry’s most recent podcast, he half-jokingly said that his business is build around or by people who are not smart enough or talented enough to do investing on their own. If I had more money than time, then all of this “SPECULATION” might NOT be worth it. But for me, this is both a challenge and a learning opportunity. I am sure that most of the other “gumshoes” would agree. BTW, thanks for the info and contact for spreading the payments.
I like your website and will probably join but now is not a good time . Im toying with Porter Stansberry with his new option service and need your help .
Im trying to decipher Porter Stansberrys new option service , Stansberry Alpha . Im not an options guru and I cant get a handle on it. If you can throw any light it would be appreciated.
the alpha has more agressive put/call plays. for example on stocks he expects to go up or stay constant, he would combine a bull spread call with a naked put…and vice versa for a stock he expects to decline
It seems Ken has made the purchase and is carefully sharing. Thank you. Would you suggest the opinion that the knowledge is worth the price of the Alpha for a year?
Quite the mystery…
What’s next Sherlock?
Without a doubt.
Look at the Jan ’14 options volume of CBI. It is upnormally high. So I guess he is using selling Jan’14 $40 put and buying jan’14 $50 call.
Their newsletters are reasonable, but the trading services are scam. Even when the make few profitable trades, you won’t be able to execute it as the options prices shoot up even before you receive the email alert. Suspect some insiders making use of the opportunity to make money.
Look at the review of short report to get an idea of the quality the service.
Did anyone see the latest offer for the S&A Resource Report where they talk about Obama and where he makes so much money on some gold program? What is he talking about? Does anyone have this newsletter he is now offering at $39? It seems like every day Stansberry is offering something.
Stansberry is part of the humongous James Dale Davidson empire: They promo fear and greed, sometimes w/ juxtaposing or contradicting teasers.
Steven, was the Obama thing based on gold, or on the royalties from his books? Some newsletter–may have been Stansberry—- sent me a teaser in December about “royalties” using Obama’s tax return entry as the example.
Yikes! If the moderator can fix the table by adding spaces I’d appreciate it.
In the file for Irregulars you wrote that the stock price is $45. Then you wrote: “…So you could, for example, sell a put option on CBI at $35 and get income of about $2.20 for that…” I may be missing something but how could you get 2.20 for a sSell Put that is way out of the money?
I viewed the teaser and then recieved a call from a rep at S&A who inadvertantly told me that the Alpha Strategy is buying OTM Calls and selling OTM Puts. He also said that Eifrig’s strategy involves naked Puts. I decided it was over my head at this time and did not subscribe. But Joe Maestro’s explanation sounds very much like what the caller described to me.