Tuesday, November 24th, 2009

Mortgage Your House and Buy as Much of This Position as Possible

Apr 10th, 2008 | By Jeff Clark | Category: Stock Market Investing

Folks, I’m going to do something today that I rarely ever do. I’m going to make an unabashed request for you to subscribe to Advanced Income – my covered call writing newsletter service. Stocks are in a bear market. Treasury bills are offering 2% rates of return. And your money market funds are just over 1%.

The only low-risk strategy to generate income right now is to write covered calls. In fact, today’s market is the ideal environment for this technique.

Options are expensive because of the recent volatility, and a large number of stocks are trading at ridiculously low valuations. So investors have a unique opportunity to pick up low-risk value stocks and generate high rates of return by selling calls against them (a technique called “writing covered calls”).

Last month, for example, in a special e-mail to Advanced Income subscribers, I argued that NutriSystem (NTRI) was a dirt-cheap stock. And it represented a compelling investment opportunity.

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This One-Page Federal Letter has Predicted 58 of the Most Shocking Stock Swings THIS DECADE…

At first glance, it looks like any other piece of Government mail…

But this seldom-publicized and seldom-understood Federal Letter holds the secret to the easiest returns you’ll ever see in the US stock market.

Dr. George Huang – a PhD trader and former VC – has spent the past 12 months studying this letter, and discovered the secret to making money from it.

The next letter arrives on April 30th.

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It was a tough argument to make.

NTRI shares were down 80% from their high last summer. The company disappointed investors during the last three earnings announcements. Revenue growth was slowing. And the company’s advertising expenses were running higher than expected.

But the stock was trading at just six times earnings, and our covered call writing strategy allowed us to profit even if NTRI dropped another 11% from our purchase price.

It was the biggest “no brainer” trade I’d seen since I told Advanced Income subscribers to write covered calls on United States Natural Gas Fund (UNG) last September (we’re up 23% on that trade, by the way).

On Tuesday, NTRI announced its first-quarter revenues were better than expected, and the second quarter looked pretty good, too. Turns out, the NTRI commercials featuring Larry the Cable Guy, who dropped 50 pounds on the NutriSystem program, are pulling in better numbers than anticipated.

NTRI shares jumped on the news. And our NTRI covered call trade is up 17% in just one month.

That’s not too bad for a low-risk trade in a tough market environment.

In today’s issue of Advanced Income, I’m going to recommend a trade that’s even more of a no brainer. This trade will generate an 8% return right away. It can make up to 20% over the next three months. And it can only lose money if the stock drops more than 7% from its currently depressed levels.

Make 3% per Month – Every Month

This report, which will be issued after the close today, details the best, lowest-risk, highest-return, income-generating strategy that exists right now. Heck, I’d tell my mom to mortgage her house and put her money into the trade if I thought she’d listen to me. Sadly, I’ll always be the 8-year-old second baseman crying over a fouled up double play to her.

But you never saw me play baseball.

You have, however, seen me pick stocks and cover the stock market. If you think I know what I’m talking about, then take advantage of this trade by subscribing to Advanced Income. Click here to learn about a trial subscription.

It’ll be the best investment you’ve ever made.

Best regards and good trading,

Jeff Clark


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By Jeff Clark

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About the Author

Jeff Clark is the editor of BIG GOLD, a Casey Research publication that pinpoints the safest ways to capitalize on the gold bull market.

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Casey Research

The Daily Resource PLUS was designed from the start to be the world's most comprehensive yet quick-reading daily e-letter providing concise updates on precious metals, energy, resource stocks, currencies, unfolding economic trends and more... including private placement financings!

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