Optionpundit.com 1

Optionpundit.com 2

Trading Secrets They Don’t Want You to Know

Even if You are Not a Trader or Investor

Optionpundit.com 3

Copyright © 2014 by ProfitPitTM Press.

All Rights Reserved.

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The people and events described and depicted in this novel are

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Dedicated to:

Your Success

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Why Should You

Learn to Trade

Options

Options are probably the greatest wealth

building tool ever invented, especially for retail

investors. However, Options trading is

infamous for all the wrong reasons. The

Internet as well as newspapers is filled with

attractive, influencing marketing sales-letters

that promise to make you rich very quickly.

Let’s be fair, if those sales-letters were

promoting to OPERATE-IT-LIKE-A-

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BUSINESS, how many would really be attracted?

Let’s face it, making huge money in shortest

possible time hits well to our internal desires.

With this key book, let me introduce you

to key reasons why you should learn to trade

options EVEN IF YOU ARE NOT A

TRADER.

Protection, Hedge,

Safety, Insurance

What if you could guard your

business against price fluctuations?

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What if you could have protected your

wealth during severe market losses

2000, 2008? What if you could hedge

your retirement savings invested into

your company stocks?

The primary reason you should consider

learning to trade options is the same as

insurance coverage. Learning how to hedge is

not only required for traders, but it is an skill

that’s equally good for BUSINESS OWNERS

and COMPANY EMPLOYEE as well.

If you are a BUSINESS OWNER in a

sector where options are easily available, you

could hedge your business against price

fluctuations of factors that affect your

business activities.

These days options are available on almost

all asset classes such as Crude Oil, Gold,

Metals, Stocks, Grains (e.g. Soybean, Wheat,

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etc.), Currencies (e.g. Yen, British Pound,

Aussie Dollar, Euro, etc.). Knowing key

factors that can affect your business and then

hedging against those can be a really valuable

skill. Airlines do this most of the time, Coffee

producers/Starbucks continue to hedge and

similarly Copper and Gold Mine owners hedge

their output prices.

Even if you don’t have listed options, you

could envision some and then find some sort

of over the counter legal ways to hedge it.

Options market is growing day by day and

now covers a wide range of products.

John (not his real name but a real story)

was a long term employee of a fortune 50

company. He was about to retire in 2008. I

saw tears in this big man’s eyes when he saw

massive drop in his long term portfolio and he

needed to cash-in those holdings soon after

his retirement. He was counting his post

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retirement wealth mostly on his company

stocks.

"I try to buy stock in businesses that are so wonderful

that an idiot can run them. Because sooner or later, one

will."

Warren Buffett

As a company EMPLOYEE, our

fortunes are usually tied to the company we

work for (in form of company’s stock

ownership). Due to conflict of interest, one

might not be able to trade stocks/options on

that company but you could benchmark your

company stocks against relevant sector or

overall market that can help you in

protecting your long term wealth.

AS INDIVIDUAL INVESTOR, part of

your wealth might be in the form of long term

stocks holdings. Knowing how to protect your

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stock portfolio will save it for from

disappearing during severe market meltdown.

No one can pick market TOPS and

BOTTOMs else there won’t be any market.

During past 14 years, we have seen huge rallies

and severe market losses many times. What if

you could have protected your wealth

when markets sold off deeply?

Let us know if you need help or have

questions

Ask@OptionPundit.com

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Build Your

At Your Prices

What if you could buy Apple

shares at $475 or $450 (vs. current

market price $543)? What if you even

get paid if the stock is not given to you

at $450 in next 50 days?

Equity options investors (or physical

metal, grains where delivery is applicable) can

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build their stock portfolio at the prices which is much

lower than current market price. Using few easy-to-

learn skills, even an individual investor can

build his long term stock portfolio at lower

than current market prices following a

systemic approach. It is simple mathematics

that anyone with simple addition/subtraction

skills can do it.

It is like buying a house (but with a huge

difference).

Let’s assume, you want to buy a house but

at your price. The house-owner is not willing

to sell you right now at your price.

HOWEVER, the house-owner tells you

that he would pay you certain amount if he

decides not to sell the house to you in

next, say for example, 90 days!!!

Similarly, if you are not given the shares of

the company YOU chose, at the price YOU

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decided during the time frame YOU chose,

YOU WILL BE PAID and you can do it

again, and then again.

You choose the company, you choose the

Price!

Let us know if you need help or have

questions

Ask@OptionPundit.com

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Generate

Consistent Income

on Your Stock

Holdings

What if you could generate

additional regular income on your

stocks?

Imagine buying a house, then renting it

monthly to collect income. That is an excellent

way of monthly cash flow that riches of world

do it. However, there is an advantage of being

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an Option Trader. In case of a house, you may

not find a tenant. But in case of stocks, there

are ample “tenants’.

Most buy-and-hold investors keep stocks

in their portfolio expecting huge runs in the

long run. But when markets are going no-

where, your stocks earn NOTHING except

the dividends.

With few simple skills, one can learn how

to enhance yield on existing stock portfolio. In

fact, these strategies outperform pure buy-and-

hold strategy in 3 out of 4 scenarios-

1. When your stock is going no-where

2. When stock is selling-off

3. When the stock is moving up

moderately.

The only time, these simple techniques

underperform is when there is a sudden, huge

rally in the stock. In fact, there are very simple

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ways to increase returns even in such

scenarios.

Such strategies provide cushion against

moderate market drops and over a period of

time, the credit alone (similar to rent in case of

a house) will make your stock purchase FREE.

Let us know if you need help or have

questions

Ask@OptionPundit.com

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Regular Monthly

Cash Flow

What if you could generate monthly

cash flow whether markets go up, down

or no-where?

Options is probably the only asset class

that is so versatile to offer opportunities for

various scenarios like no other. Most other

investment vehicle are focused on “CAPITAL

APPRECIATION” (Buy low/ Sell High or

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vice versa) while options can be utilized for

regular monthly “CASH FLOW” (as well as for

capital appreciation).

Options are based on mathematics and

pricing is determined by a formula. It is a time

decaying asset. There are only two types

CALL and PUT, one benefits from upside

move in the stock while other benefits from

the downside move. You can create almost

infinite possibilities with options.

You can structure NON-DIRECTIONAL

(i.e. it can make money whether underlying

goes up or down) strategies that are

LIMITED RISK in nature while still offering

GREAT REWARDS.

Though there are tremendous possibilities,

based on our decade+ experience, we can tell

you that it is only 4-5 strategies that make up

for almost 80% of the gains.

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There is NO NEED to search for the best

stock. There is NO NEED to scan the

universe for quality stocks. There is NO

NEED to analyze company’s Balance sheet,

Cash flow, Profit & Loss statements as those

market neutral strategies are aimed to benefit

from options’ and underlying stock’s

characteristics.

While this is easy to learn and understand,

doing this requires practice and experience.

Let us know if you need help or have

questions

Ask@OptionPundit.com

After reading this, you may ask if Options

Trading is so easy, why everyone isn’t doing it.

And why majority of Options Trader’s fail

(some say > 90% of Options Traders fail).

This brings me to the final point -

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Leverage, Multiply,

Supercharge

What if you could covert $5K into

$1million?

Inappropriate usage of leverage is where

most traders fail. Theoretically, and in some

case practically, a small sum of money can

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convert into huge sums. It is this possibility

that attracts novice traders to enter into

options trading. Since most are familiar with

BUY and SELL (and HOLD), they start

trading options along the same principles

without really understanding how options

work.

This attracts the untrained side of traders

and investors. They think by investing small

sums, they can hugely profit from the

direction i.e. up or down.

An example most often sighted is-

To buy 1,000 Shares of Apple Inc. (Ticker-

AAPL) you need $543,000 (assuming $543 current

market price). If Apple goes to $600 in 3 month, your

stock gains are $57,000 thus gaining +10.5%.

What if you purchased 10 AAPL APR’14 call

options (3months, 550 strike) for $29,500 and if it

goes to $600, your gains will be $20,500 thus gaining

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+69.5%!!!

That’s almost 6 times more money using

Options vs stocks. How cool is that?

And it is just the beginning. You could

increase these returns even many more folds

using various other types of options (e.g.

shorter time frame).

This logic and the potential risk/reward

are easy to understand and satisfy our internal

desires to make money in the shortest time.

But it is not easy to predict stock’s

direction. This is where specialized skills in

predicting the stock moves come into play and

hence search of a holy grail to predict stock’s

move.

"Long ago, Sir Isaac Newton gave us three laws of

motion, which were the work of genius. But Sir Isaac’s

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talents didn’t extend to investing: He lost a bundle in

the South Sea Bubble, explaining later, “I can

calculate the movement of the stars, but not the

madness of men.” If he had not been traumatized by

this loss, Sir Isaac might well have gone on to discover

the Fourth Law of Motion: For investors as a

whole, returns decrease as motion

increases."

-Warren Buffet/ Source: Letters to shareholders,

2005

Since amount to be invested tends to be

fraction vs buying shares, majority of option

traders also tend to overtrade resulting into

poor outcome.

So when do one use options to leverage?

If you have a PROVEN system to predict

underlying stock direction, if you have

specialized skill set to understand what is

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going drive a particular underlying stock or

commodity’s prices, if you can envision any

potential merger & acquisitions and many

more.

Bottom-line: If you have a specialized skill

set to forecast underlying asset’s price move,

you should learn how to trade options well so

you could benefit from your specialized skill to

multiple your returns.

Let us know if you need help or have

questions

Ask@OptionPundit.com

Optionpundit.com 25

In Search of a

Holy Grail

Where Do You Go From Here?

Congratulations for making it this far. You

have now been exposed to some of the most

powerful and effective reasons available for

succeeding in Options Trading business.

While options are one of the greatest

wealth building tools available to common

investors, many still fail as they don’t do it

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properly.

No matter how compelling these reasons

are, just being exposed to them is not enough.

You must also do something with them. In

order for you to get the most value out of this

knowledge, you might want to consider

developing a step-by-step action plan.

Just like any other regular business,

TRADING is a BUSINESS too and in order

to maximize benefits from it, one needs to

have right mind-set before diving in.

Before you start, let me answer most

commonly asked questions-

DOES IT WORK?

IS IT EASY?

CAN I DO IT?

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The answer to all three is a resounding YES!!

If you are a business owner, or a trader,

sooner or later options skills are going to be

useful. However, it is dependent upon

SKILLs, SYSTEM and SUPPORT you have

before you begin your real journey.

Find a good mentor who can shorten your

learning curve and save you fortune by

transferring his skills to you. Don’t choose

someone randomly. Ask for student referrals

and speak to them. This will provide you with

Truth, Authenticity and Proof before you

make a commitment. Invest time wisely.

Though your coach or mentor will provide

you with tools, systems to help you get started,

you will have to develop your own system. A

system is something that will continue to

produce results which are duplicable and

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transferable. It is the system that will enable you

to do more with less time.

If you are looking for a quick start, you

may want to start reading about Options at

www.OptionPundit.com.

OptionPundit.com is dedicated to options

trading and contains over 800 posts and

articles. There is also a huge collection of

powerful tools, all absolutely FREE at no cost

to you.

Alternately you can approach me at

Ask@OptionPundit.com anytime and I would

love, absolutely adore to personally answer any

questions you might have.

Now you have the reasons…and

SUPPORT

GO FOR IT!

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Scan the QR code or go to

OPTIONPUNDIT.COM to find out more.