written by reader What do you think about…..

By edbacon, November 1, 2011

Porter Stansberry and Dr. David Eifrig are offering to collaborate on the Retirement Trader Newsletter. To cash flow the market they are suggesting we sell puts and calls on companies we want to own. They say they have a proven track record and will provide continuing recommendations. I am considering pursuing this, what do you think?
Best,

Ed

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Travis Johnson, Stock Gumshoe
November 1, 2011 3:48 pm

These strategies are quite common, and if you’re looking for relatively low risk then they tend to be fairly low income generators except when volatility spikes. I don’t know what the track record is for the Retirement Trader, but it’s pretty expensive so you’d want to have a large chunk of cash to dedicate to option selling (you need cash to back up those commitments) in order to make the purchase price of the newsletter appear reasonable. Assuming that their strategy is effective, of course.

There are several newsletters that sell options as a regular strategy — selling covered calls is the most common one (ie, buy the stock then sell a call against it to earn income), but a few put-selling advisories have cropped up over the years too, including Lee Lowell’s Instant Money Trader. We’ve had at least one subscriber review of that one that talks a bit about the strategy, and I’ve written about it a couple times: http://stockgumshoe.com/reviews/instant-money-trader/

I’ve written about Retirement Trader before, but we don’t yet have any subscriber reviews — what we do have is here: http://stockgumshoe.com/reviews/retirement-trader/

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