Jeff Clark’s “Transfer Dividends”

By Travis Johnson, Stock Gumshoe, January 20, 2008

I was just settling down for a nice teaser read from our friends at Stansberry and Associates — this time teasing the relatively new Advanced Income newsletter from Jeff Clark.

And it started to sound a little bit familiar …

“It’s the world’s best income secret, perfected by a California Millionaire over the past 20 years… and the only opportunity we know of that is certain to add up to $1,550 or more to your account… in the next 24 hours.”

They’re calling this investment strategy “Transfer Dividends” now, but your friendly neighborhood Gumshoe sniffed it out for you
several months ago, when this teaser made it’s first rounds and was called the “California Overnight Dividend

Except back then, the tease was that you could add $5500 to your account in the next 24 hours. So we’re downsizing a little bit.

Still pretty much the same thing, with mostly the same wording … a veiled teaser for a strategy that essentially involves buying stocks and selling covered calls for income. I don’t have much new to add about the strategy, which is certainly a legitimate one, but if you missed the writeup on “California Overnight Dividends” a while back, you can read it here … just substitute “Transfer Dividend” for “California Overnight Dividend” and it will all make sense.

I didn’t notice any clues for particular companies he’s recommending this strategy with right now, but generally for this strategy you’re looking for stocks with relatively high option premiums in the near months — and companies that you should like, since you have to buy up quite a lot of shares to make any income selling covered call options.

He also included a couple paragraphs on a new strategy he’s teasing, called “Double Dividends” — haven’t sleuthed that one out yet, but I’ll take a look soon. You’ll be the first to hear.

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22 Comments on "Jeff Clark’s “Transfer Dividends”"

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Just some guy
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Just some guy
January 20, 2008 8:52 am
Yeah the transfer dividend thing is obviously covered call options. Gosh, could one not have figured that out since it is the most common form of option trading. As for the Double dividends, I am not really sure about that. It could be buying long term options and selling short term options against them. for example, instead of paying $33 a share for MSFT, laying out $3300 for 100 shares, and selling a February 35 call, that would net $72 less commissions (obviously not s good deal but this is just an example), you could buy one LEAP January 2010… Read more »
T. Atkinson
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T. Atkinson
January 20, 2008 10:53 am
I scoped this one out too, based on the reference (quoted below)to Joseph Hooper: [“As a former Merrill Lynch stockbroker named Joseph Hooper says, this is “without a doubt the most misunderstood… and poorly implemented financial tool in the world.” A financial planner in Washington named George Middleton agrees: “Most financial planners aren’t CFAs, so they don’t have the knowledge or background to understand [how this investment works].”] Hooper’s book is listed on Amazon.com for $78.75. Customer reviews are very mixed. A typical negative review is copied below. Covered Calls and LEAPS–A Wealth Option + DVD: A Guide for Generating… Read more »
mark
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January 20, 2008 11:25 am
i get emails from several investing sites but here latly i have started unsubscribing from a few of them. you know you get these news letters there five miles long they dont really tell you anything informational. and after waisting twenty to thirty minites of my life your told for three hundred dollars you can get these trade secrets sent to you. well my point is there just as bad as these info commercials it slices it dices it empties your wallet!! ha! ha! well to the add from daily reckoning its called the paddle strategy,it claims that with this… Read more »
G IMBURG
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G IMBURG
January 20, 2008 11:44 am

One technique I discovered at Dividendium is buying the target stock issuing the dividend 5 days before the EX DIVIDEND date and selling it on the EX DIVIDEND date.According to Forbes,the stock price tends to rise due to the volume of buyers gathering the dividend. I havent tested the tactic but it makes sense.

investorgirl
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investorgirl
January 20, 2008 12:25 pm
I JUST SIGNED UP ROF A 30 DAY FREE TRIAL WITH MARKETFN. i WENT TO THE SITE, AND THERE THEY ARE! THE GREAT INFO! NEW INVESTORS ARE NOT GIVEN MUCH HELP. I ALSO FOUND IE:NFG ONE OF THE BUYS HOWEVER SINCE THE SERVICE DON’T GIVE THE FOUR VITAL STATS I FOUND OUT I WOULD HAVE NEEDED TO OWN THE STOCK SINCE NOV OF 07. TO GET DIV THIS FEB. LOL BIG HELP! NOW HOW IS THAT A GOOD THING. PLUS THEY CHARGE 69 DOLLARS A MONTH FOR THIS SERVICE. PERSONALLY I THINK THEY SHOULD BE ASHAMED OF THEIR TABLOID! ANY… Read more »
rumadagga
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rumadagga
January 20, 2008 2:15 pm
“Double dividends” are indeed covered calls using LEAPS – I am a subscriber to Advanced Income. Normally I would think it unethical to just come out and say that on the web, but the real value in the subscription is Jeff Clark actually telling you which stocks to use for your covered call writing and sending email updates as necessary. So if you want somebody to read the charts for you and give you advice, pay the $200 subscription fee. Otherwise, now you know he’s talking about LEAPS and covered calls, and lots of people talk about that on the… Read more »
BlueSkyCasey
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BlueSkyCasey
January 20, 2008 2:26 pm
I like and have BIF and also Canadian oil stocks HTE, PGH, AAV. There are several more paying great dividends. They are down right now so the dividend percentage is even higher. I hope to be getting dividends for years from these. There is an excellent newsletter called Canadian Edge for $100 a quarter that goes indepth about lots of Canadian dividend paying stocks in other areas also like Yellow Pages, real estate reits, etc. I buy them with my Scottrade account if they trade in the US or Scottrade buys them for me if they don’t. I really like… Read more »
Roy Laws
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Roy Laws
January 20, 2008 9:08 pm
I have tried out several of these “newsletters” only to be bombarded monthly with endless promises that if I send $89.00, $129.00, $500.00, [Insert any ridiculous figure you like] they will send you the “Secret Information” to make a fortune. However, they don’t mention that each one you send to will only bombard you with yet more advertising, and precious little, if any, actual information that you could use to make a buck. When my current trials run out, I think I am going to just concentrate on using my hard-earned skills at reading charts etc. and just be my… Read more »
investorgirl
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investorgirl
January 21, 2008 11:56 am

I bought pgh and when I go my dividends I ended up with much less than I was told by the site promoter. The reason for this is you also have to pay up front the Canadian tax which is almost half of the dividend, which cuts you earnings in half. bif is way down from what i paid for it, but i like the fact that it pays monthly, and would like to know what other div paying stocks pay monthly.

Ken Levin
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Ken Levin
January 21, 2008 2:00 pm

As a retired contractor-developer, I started playing around in the market and other financial instruments recently in an effort to make some easy money on my hard-earned money. After buying memberships in several clubs and newsletters, I think I know now how to make money in this business; SELL MEMBERSHIPS! It’s been a bit painful & expesive, but I’m catching on!

chris
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chris
January 23, 2008 8:23 pm

BlueSkyCasy and Investorgirl,
I purchased shares of PVX, which is paying around 15%. The stock is down from where I bought it, but I hope to buy more.

Stan
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Stan
March 4, 2008 10:49 am

Jeff Clark I have followed for years and he is really quite good. His plan is two fold, buying stocks that have little dowside and have large near months premuims for covered call writing. Since he has started this service he has done fantastic. Everything has worked to plan so far. I have done quite well and am pleased with his picks. This service is touted for people who have larger sums of cash and need income. This service does provide this and am sure its helping many who use it.

Gravity Switch
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March 4, 2008 10:56 am
Thanks Stan — glad to hear it. I certainly don’t doubt that selling covered calls is a good strategy for many people. My main concern is what you noted — though the ads for this are sent to pretty much everyone and nothing in the ad says you need to start with a big pile of capital to get this income, this strategy really does work much better for folks who have capital but need more income. I’m glad to hear that Clark has helped you, it’s always nice when investors can weed through the junk to find the advisers… Read more »
Tim
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Tim
March 5, 2008 4:52 pm

I have come up with a different “double dividend” method. Buy a multiple of 100 shares of a high dividend stock. Sell “deep in the money” LEAPS. Collect the dividends. You can sell LEAPS that are 50% of the cost of the shares. That method is my own creation as far as I know. It is low risk since the LEAP owner takes the majority of the risk.

Tim
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Tim
March 5, 2008 4:54 pm

Could you buy an option 5 day before ex dividend date and sell the day of the ex dividend date? Could one buy puts and sell after the ex dividend date to get value?

Gravity Switch
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March 7, 2008 9:10 pm
Options contract terms don’t adjust for routine dividends (they do adjust, usually, for significant one time dividends of more than 10% or so of the share price, much as they adjust for splits and mergers). So theoretically, yes, you could buy and sell your options around the ex div date if you believe your strategy will make that profitable — but the prices in the time before the dividend will gradually adjust to reflect the dividend in almost all cases. You might get lucky in contracts with very low volume and sneak a bargain in against a seller who makes… Read more »
John Moore
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John Moore
June 2, 2008 8:56 pm

Jeff Clark has a new plan “unclaimed dividends”. Just sign up with any big brokerage house, fill out a “special” form and then you receive $1,500 to $2,000 per month from a big pile of “secret” money known only to the big brokers. No stock purchases are necessary just open an account and apply for your monthly “free money”.

Ken
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Ken
June 4, 2008 11:32 am

Yeah,isawthesamething. itsnow”unclaimeddividends”whichisanother”buzzword”in the lineof”buzzwords”like”transferdividends”and”californiaovernightdividends”. Same pig different lipstick.

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June 4, 2008 11:48 am
Jon
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Jon
February 1, 2011 1:22 pm
I have dealt with stansbury and associates for quite a while, consistently have lost month trying to follow their advice. You will get one newletter from Porter telling you that the whole world is about to crash and one from Jeff or another person saying quite the opposite and one to buy gold and silver, but don't be surprised if they make a short term correction. So pretty much whatever you do you will be wrong in the short term, and if you are looking to make money long term, you don't need these guys, just buy on dips and… Read more »
David Knight
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David Knight
August 1, 2012 8:38 am

Perhaps you are trying to hard. My story has been very different. I’ve made money following their advice and using the sources and information that they provide.

David Knight
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David Knight
August 1, 2012 8:34 am
I am blown away with all the sorry investment loosers that post here. I for one, have made more money with the information that Stansbeery provides then any other investment source- PERIOD. They provide the invester with investment OPTIONS. End of story. How difficult can this be people? I am an average guy, that has had zero knowledge of the stock market. By following the advice from these various news letters, I pick and choose that that interest me and foget those that do not. I have made a lot of money (lets just say- more than I would have… Read more »
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