stansberry Alpha newsletter

By jnksak, December 19, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

does anyone know if this is another naked put newsletter again?

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51 Comments on " stansberry Alpha newsletter"

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tearhill
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tearhill
December 19, 2012 11:15 am

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.

Lazar
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Lazar
January 28, 2013 5:27 pm
The strategy is synthetic long stock with 10 to 12 basket of stocks Sell a put and buy call.it will work on bull market only. He may be using hi volatility to sell the put( hense the alpha).Possible sell front month put and buy out of the money 12 monts call. The problem- you do not have downside protection. Facing debt selling debate in February I do not think that the happy rally will sustain Bottom line the % return is not achievable.I was with Stransbery letter and he did horrible job in 2012.canceled my subscription for this year.getting to… Read more »
kd1966
Member
1
kd1966
December 19, 2012 2:57 pm

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.
– Kevin

JIM KASSNER
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JIM KASSNER
January 25, 2013 2:45 pm

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.

Captain Jim
Guest
0
February 28, 2013 9:51 am

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.

Travis Johnson, Stock Gumshoe
Admin
4799
February 28, 2013 9:57 am

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.

Rob
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Rob
August 29, 2013 1:36 am

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.

Nick
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Nick
February 23, 2013 12:40 pm
It is doubtful anyone with a moderate amount of money can make much with the Alpha program. I think it is way overpriced for this reason unless you have hundreds of thousands to put into it and don’t mind holding a bunch of stock should the market tank. (1) of the first 4 recommendations he gave, I was only able to get into 1. Some of these options are thinly traded and if the stock runs up a bit, you will never get the combo pair at the price he recommends. (2) he quotes large % gains but in terms… Read more »
David Stanton
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David Stanton
December 19, 2012 4:56 pm

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.

J.P.
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J.P.
December 23, 2012 9:45 am

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.

steven
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steven
December 23, 2012 9:54 am
I believe like many others here that he is selling naked puts and taking the proceeds and buying out of the money calls 1 year out for less than he took in on the puts so if the calls expire worthless he still has some of the money from the puts and if they stock goes up he has a win on both sides. the higher the stock goes the more he makes and he is giving the call side a year to work out. if he gets put the stock he can then sell a covered call on it… Read more »
Bubba Gump
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Bubba Gump
December 19, 2012 11:51 pm
I was thinking its probably more like selling a Bull Put spread (sell near-money put for most money, buy cheaper out-of-the-money put for protection), and then using half the received credit to buy an OTM call or Bull Call spread for the upward bias. The “anomaly” is probably just that Puts are more expensive than calls, so you end up selling puts, buying calls, and still pocketing a little premium. Of course, you must use a margin account and tie up some margin for the duration of the trade. You want to collect the put premium, but want the stock… Read more »
Terry Hillen
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Terry Hillen
December 20, 2012 10:41 am
I actually tried out a couple of Stansberry Research newsletters. Some was okay but not worth the bucks. They notoriously label common technics as some highfallutin whamajama that only they know about…like “mind boggling unique approach to instantly get paid and profit immediately 100% of the time, within 15 minutes of enterring a trade”….Wow! What is that?! Duh….sell a put or call. 15 minutes? You better get a new broker. Sure you’re profitable immediately but not necessarily 15 minutes later. So I’m leary that this is anything new. A few of you folks have posted you actually have signed up… Read more »
packrateric
Member
2
December 20, 2012 5:27 pm
The most important task of a news letter business is to ge a sexy high society name like soveriegn society or the oxford club. Some cool looking . Icons to give a feeling of authority helps such a sheild with a Boars head or a group of Greek columns. I wonder if the soveirn society will later invit you to an “elite inner circle”. Probably. The invitation will come like this :sice we like you so much we are going to offer you this never before presented opportunity …select few …once in alife time….. I like gum shoe since it… Read more »
J.P.
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J.P.
December 22, 2012 10:56 am
From what this “junior gumshoe” gleaned, my guess is that he is buying an in-the-money call for $$$$ (i.e. one with nearly all intrinsic value and little extrinsic/time value) , then selling a same-month, higher strike price out-of-the-money call for $$ (i.e. one whose strike price close enough to the stock’s price so as to have significant extrinsic/time value and zero intrinsic value). In his CBI example, I was able to mimic this quite closely. Doing so does cost you some money (i.e. buying the more expensive in-the-money call for $$$$), but you offset some of that by getting about… Read more »
steven
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steven
December 22, 2012 1:25 pm

You want to split the $120? if interested email me at jnksak@comcast.net and i can give you my number and we can talk.

tearhill
Member
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tearhill
December 22, 2012 5:42 pm

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…

J.P.
Guest
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J.P.
December 22, 2012 8:18 pm
In my analysis, there still was risk (and I believe that Porter mentions this). But in a recent example that I ran thru tonight (on a different stock), I found the following “anomalies”: 1.) The risk was limited to the cost of the option, which in this example, was equal to a mere 11% downside from the stock’s current price. 2.) The net cost of the spread was actually below the intrinsic value of the underlying stock (meaning that even if the stock stayed the exact same price for the entire year, I would still pocket a small profit (less… Read more »
Terry Hillen
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Terry Hillen
December 22, 2012 11:33 pm
Looks interesting. I had to go read the ad again and a couple of things sort of stuck out. He hints at selling puts when volatility is high – when this flyer hit my in box the vix was under 16 and he may have been guessing at a spike with the fiscal cliff but he also notes that CBI puts and calls are more expensive – so volatility is part of he “anomaly”. He also touts 50 – 100% returns AFTER your initial 15-18% payment. But THE KEY that I think negates your suggestion is that he says you… Read more »
J.P.
Guest
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J.P.
December 23, 2012 9:53 am

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!

Terry Hillen
Guest
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Terry Hillen
December 23, 2012 2:35 pm

J.P.
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.

Tim Hanks
Guest
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Tim Hanks
December 22, 2012 1:19 pm
ALL THIS SPECULATION ON THIS ALPHA NEWSLETTER. IF YOUR SPENDING SO MUCH TIME ANALYZING THIS OPTIONS STRATEGY, THEN JUST BUY THE NEWSLETTER TO GET THE STRATEGY. IT WILL ONLY COST YOU $120.00 DOLLARS TO GET IT IF YOU CANCEL IN 90 DAYS. HOW MUCH IS YOUR TIME WORTH? HOW MUCH TIME HAVE YOU SPENT ANALYZING AND ASSESSING THIS STRATEGY.? A.) FIRST HE HAS THE RIGHT STOCK. THAT SHOULD OFFER YOU SOME SATISFACTION. B.) YOUR NOT GOING TO LOSE MONEY ON THIS STOCK, IT’S GLOBAL WITH MORE CONTRACTS ON THE BOOKS THAT THEY CAN HANDLE. I BOUGHT THE NEWSLETTER AS SOON… Read more »
tearhill
Member
0
tearhill
December 22, 2012 5:34 pm

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.

J.P.
Guest
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J.P.
December 22, 2012 8:27 pm

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.

Tim Hanks
Guest
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Tim Hanks
March 1, 2013 7:14 am
In response to Terry Hillen on December 22,2012. His attack on my Character and calling me a liar among other insinuations. I won’t dignify your Lottery Ticket Mentality response or comment. However I feel calling someone a liar while hiding behind an email is a cowardly act. Poverty causes anger and frustration which you demonstrated in your response. I’m sorry for the unfortunate position you are in. I’ll pray for you. Options are a very complex It takes years to master but the pay off is for a lifetime. Dr.J Najarian told me it’s like med school, then Internship, then… Read more »
Tim Hanks
Guest
0
Tim Hanks
March 1, 2013 7:04 am
I won’t dignify your Lottery Ticket Mentality response or comment. However I feel calling someone a liar while hiding behind an email is a cowardly act. Poverty causes anger and frustration which you demonstrated in your response. I’m sorry for the unfortunate position you are in. I’ll pray for you. Options are a very complex It takes years to master but the pay off is for a lifetime. Dr.J Najarian told me it’s like med school, then Internship, then private practice. Bottom line, Option traders are specialist, no different then a Cardiologist. This strategy only works with all the right… Read more »
Rufus Caldwell
Guest
0
December 22, 2012 8:58 pm

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 .

Rufus Caldwell
Guest
0
December 22, 2012 9:02 pm

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.

ken miller
Guest
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ken miller
December 26, 2012 9:35 am

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

ACCv
Guest
0
December 27, 2012 1:13 pm

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?

Terry Hillen
Guest
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Terry Hillen
December 27, 2012 10:07 pm
With all due respect I don’t think that’s it ken. Jeff Clark who publishes the Short Report for Stansberry just sent an e-mail the last 2 days exactly detailing the trade you just describe – a bull call spread with a naked put. For free he gave it away, no amazing mystery and no “anomaly” You can make that trade on any stock with options…you’d have to be a little crazy or have cahones of steel to do the reverse with a naked call, you could go bankrupt and you can loose crazy money on a naked put as well.… Read more »
archives2001
Irregular
33
archives2001
December 29, 2012 12:47 pm

Quite the mystery…
What’s next Sherlock?

Paul Thomas
Guest
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Paul Thomas
December 29, 2012 6:12 pm
I think David Stanton ( 12/19/12 ) has it right. My guess is he is selling puts to pay for the calls he buys. This is not a new strategy, option traders have been using this since puts started trading on the CBOE. I don’t think he has to go out 12 months to utilize this method as he wants to take advantage of time decay on the put sale and that doesn’t accelerate until the last month. This is done at a credit so even if the call does not go up the trade is still profjtable and on… Read more »
J.P.
Guest
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J.P.
December 30, 2012 9:28 am

Without a doubt.

jack
Guest
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jack
December 30, 2012 1:47 pm

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.

penny
Guest
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penny
January 4, 2013 4:06 pm
The anomaly is, according to an email I received from Jeff in Growth Stock Wire today, the stock was fairly flat for a time, months or years, then begins to have “money piling up around the stock in a niche.” – options. He said he follows 3,000 stocks. He MUST be looking for rising volume and open interest in those options and waiting/hoping for a catalyst to get the stock moving, hence the interest in LEAPS. I don’t think I can track rising OI on even a dozen stocks with flat pps. And how flat over what period of time?… Read more »
bobbyb
Member
0
bobbyb
January 4, 2013 7:16 pm

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.

Terry McCall
Guest
0
January 18, 2013 11:30 am
I purchase a number of Porter’s products but not this one. I trade options and like the challenge of figuring out what he’s doing both for the mental exercise and the fun of it. I’ve come up with close to what David estimates he is doing. But, slightly different and I think more accurate. My difference is that I believe that Porter is selling front month Puts and buying out month Calls. The strategy is a form of a time spread (i.e. Calendar) on an up trending stock. Terry H alludes to this and he is also correct that one… Read more »
Terry McCall
Guest
0
January 18, 2013 11:39 am
Sorry, the table did not paste well. Let’s try that again. Date Price Trades Credit/c P/L Rate of Return 12/17/12 $41.80 STO Dec 12 41 Put BTO Apr 13 50 Call $ 3 $170 3.9% 1/20/12 $45.49 STO Jan 45 Put $118 $128 1.5% 1/17/13 $48.79 STO Feb 48 Put $216 $320 3.5%
Terry McCall
Guest
0
January 18, 2013 11:41 am

Yikes! If the moderator can fix the table by adding spaces I’d appreciate it.

petrohog
Member
0
petrohog
January 18, 2013 7:57 pm
Do we have any clear winner to this Tease? I am interested in the ideas and theory behind Stanberry’s Alpha strategy. I don’t mind paying for the report but $1300 just to educate myself!?!! Also, I do not want and would not use the 12 stock tips Porter is offering. IMO, those who follow promoted ideas are often too late to dinner, or worse… the main dish. Does anyone know what the Anomaly is? What about a proper name or general description of the strategy to point Irreggulars like myself in the right direction for FREE. If this information is… Read more »
Travis Johnson, Stock Gumshoe
Admin
4799
January 18, 2013 9:50 pm
I posted some guesses about this strategy in a Friday File for the Irregulars a few weeks ago, my conclusion was that he’s selling year-out puts and using some of the premium you get to buy calls at the same expiration. Following is an excerpt from that Friday File, the full note is here: It sounds very much like he’s recommending you both sell puts and buy calls at the same expiration, with presumably different strike prices to create some income. And no, you’re not going to generate 20% returns (or 18.5%) in a year with this strategy unless you’re… Read more »
a1maestro
Member
0
a1maestro
January 30, 2013 8:39 pm
I believe his ALPHA strategy is really quite simple, but am open to other ideas. Back in December when I first received this teaser, I played around and came close, but not quite there. Having been a Stansberry subscriber for a number of years, I am familiar with his ideas. CBI was at $41.75 when I ran my exercise. I believe the inefficient market anomaly he is talking about is where ATM calls and puts at the same strike price are out of whack. Efficient market theory says that they should both be nearly the same as the probability of… Read more »
tanshoe
Member
0
tanshoe
February 9, 2013 2:36 pm

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?

Arlene
Guest
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Arlene
February 28, 2013 10:25 am

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.

Tim Hanks
Guest
0
Tim Hanks
March 1, 2013 8:46 am
Travis Johnson and Joe Maestro have it right. Fundamentals of the underling stock has to be a winner to make the returns stated. First you have to do your home work on the underlining asset CBI. Chicago Bridge & Iron Company N.V. was founded in 1889. 124 years in business. I guess I’m showing my old age now. CBI has the expertise in building the LNG Export terminals and CNG worldwide. Huge speculation that this is next BOOM in energy industry. With speculation comes greed. Everybody wants CBI to build their Export terminals. They have more work than they can… Read more »
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