Stansberry Alpha newsletter

By gimpie317, January 30, 2013

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.

Travis: Any thoughts on the new Alpha newsletter Stansberry’s coming out with? Cost is $1625/year for 12 option plays selling put options. Do you think their advice is worth that kind of money?

Leave a Reply

8 Comments on " Stansberry Alpha newsletter"

avatar

radesrochers
Irregular
1
January 30, 2013 9:32 pm

Travis, I just received Stanberry’s ALPHA Strategy also. What is your opinion in general on the strategy of selling put options?

alainbm
Member
1
alainbm
January 30, 2013 9:48 pm

Bottom line you have to be willing to buy the stock you are selling options on. So you have to have sufficient liquidity on hand or be willing to use a margin account.

Ron
Guest
0
Ron
January 31, 2013 3:13 pm

I have been selling Puts and it does work. True you must be willing to buy the stock, but you can alsways roll it out to a later date and in most cases pick up additional premium. It also allows you to cover the exposure in your margin account at no cost until it is excercised. Nice to get a return on borrowed money that you are paying noting for.

John Green
Guest
0
John Green
February 13, 2013 3:22 pm

Who is your broker? Broker’s generally do charge interest for margin money.

euclid
Irregular
1
January 31, 2013 7:33 pm

I haen’t done it but I think selling naked puts can be very profitable. You do not have to buy the underlying stock if the price drops. You; can simply close out the position with a generally small loss.

John Green
Guest
0
John Green
February 4, 2013 11:37 am
Stansberry & Associates already has Retirement Trader that specializes in selling puts. RT generally sells puts close to the money, which means you get a lot of premium but have a good chance of being put to the stock. That means that you should only sell cash secured puts (no margin). Which means that your annualized return will be about 20% of what they claim, since they love to state eye popping returns on margin. It is not clear whether Stansberry Alpha brings anything new to the table. And charging over $1600 for a put selling newsletter sounds pretty pricey… Read more »
John Green
Guest
0
John Green
March 7, 2013 11:57 am
What Stansberry Alpha does is combine long calls and short puts. So the put sales finance all or part of the long calls, while at the same time creating a margin requirement. Of course if the stock goes the wrong way you can lose money on both the puts and the calls. Buyer beware. Options are generally fairly priced — the “fair” value of an option is usually between the bid and ask. The real professionals in the options market are the market makers, and they make their money on the bid/ask spread — they hedge away all the delta… Read more »
Bill H
Guest
0
Bill H
April 22, 2014 7:55 pm
@John Green: I believe you are confusing two different “fairly priced” concepts. In any open market where there is a publicly posted bid and ask price, the “fair price” can be said to be in that range, with “market makers” able to collect the spread in each trade and others loose that spread in each trade. Thus the prices could be said to be “unfair” by the amount of the spread. But with options, there are other considerations as well. Here the main consideration is whether the price is high or low based on the price and the volatility of… Read more »
wpDiscuz