written by reader Re: Jeff clark of Stansberry research

by mike11336 | May 30, 2012 9:54 am

Can anyone comment on this latest tease about how to ’unlock your account for instant cash’? Apparently you need to talk your broker into giving you a ’special form’ which along with Clarks instructions allows you to ’unlock’ a hidden feature on your account page enabling you to access a share of the brokers fees. Sounds fishy, but great if true.

Source URL: https://www.stockgumshoe.com/2012/05/microblog-re-jeff-clark-of-stansberry-research/


16 responses to “written by reader Re: Jeff clark of Stansberry research”

  1. Bob S. says:

    It’s all about naked options. My IRA (Fidelity) doesn’t allow them. Be very careful with naked options.

  2. CaveBear says:

    The form is the options trading form, and the strategy is either covered call writing, or put selling (cash covered, probably, unless you have a margin account).
    I have rarely made money with covered call writing, although have used it to balance losses sometimes.
    I have made plenty of money with put selling, however, and it’s a great way to buy stocks you want, at a lower price than their trading for, and make some money while it waits to get down there.

    Watch out for taxes.

  3. Ron4usc says:

    I subscribed to the Stansberry stuff for awhile. For what it’s worth, my personal experience with this fellow was that his recommendations lost money far more often than they made money. I would have been a net loser if I followed them all. Granted my results are far from scientific and must be considered anecdotal. Just be careful. The case he makes for his recommendations always sounds foolproof – until it moves against you at which time he has an equally “sound” explanation. I realize that that last part could apply to the majority of newsletter pundits.

  4. Al says:

    Options and taxes is a good subject.
    Here is what I understand about it: my brokerage company does not seem to report the
    option transactions to the IRS. So, it seems that you could have gains on the transactions without reporting it to the IRS. It sort of works like the honor system.
    However, I was told recently that will change in the near future. The brokerage companies will be required to include the option transactions on their report to the IRS.
    This is a significant change that you should verify with someone who is well versed in this subject.

  5. jrg345 says:

    Others can speak to tax consequences better than I, but I have made money writing covered calls and cash backed puts. Doing a little research on your own and paying attention to basics like PE and current price relative to annual high/low, you can get annualized returns of 10 to 20 percent. I have averaged about 17% this year. I am operating in an IRA, so the taxes are put off anyway.

    I never buy options. That is like insurance; betting against something. I sell so I get cash in the account. I always sell puts on some stock I would like to have anyway. If I get exercised, no big deal since I wanted the stock at a good price anyway. I sell covered calls on something I’d like to maybe sell anyway.

    I am not brave (foolish) enough to write naked calls or puts and that is not allowed in an IRA anyway.

  6. Caribeq says:

    What is the term ‘naked’ supposed to imply? I understand call and put.. but why the ‘naked’ put – what is the difference?

  7. patrickw9 says:

    When one buys an option, the risk is limited to the cost of the option (which can lose 100%), but the potential gain is essentially unlimited.

    When one sells an option, the gain can never be more than the cost of the option, but the potential loss is essentially unlimited.

    This proposed strategy (selling uncovered options) is occasionally used very cautiously by top experts with advanced degrees in finance and years of experience; what do you think is the likelihood that you or I will routinely profit from it? To use a term from science and statistics, the probability is “vanishingly small.”

  8. Jeff says:

    Selling “naked” calls is less risky than shorting a stock. Stock “A” is $25. I sell the 20 calls in a future month for maybe $7. I have now shorted the stock @ 27 and will collect the difference if it goes down. Like selling puts on a stock you want, I’m shorting a stock at a higher price. Of course I’m relatively comfortable with my bet. Risky yes, but no more than shorting.

  9. hd123sftail says:

    I have been looking into selling calls and puts. Covered type only. My question has to do with the underlying stock getting assigned. Say you sell a jan 13 call for 3.00 and next week the underlying goes over the strike price. What I think I know is that my stock will get assigned. One question is when will it be assigned? Is there a cost of assigning my stock to the buyer? Why do people prefer not to have the underlying assigned? Thanks in advance for any information passed along.

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