2. Often times, I feel like Iām living through an
episode of MythBusters. Let me give you a
quick overview if youāve never seen this
popular show thatās on the Discovery
Channel.
The show circulates around a group of guys
and gals who run elaborate tests (based on
science) to prove if long standing rumors, old
wives tales, unbelievable stories and myths
are true or not.
3. For example, my favorite episode is when
they were able to prove that cell phones,
iPodās or even laptop computers do not affect
flight instruments!
Now, Iām not a scientist by any stretch of the
imagination. However, Iām constantly myth-
busting when it comes to the financial
markets. In fact, just a couple weeks ago, at a
party, I was dispelling myths about options
investing.
4. It is where I met Ian, a successful young guy
(in his mid 30s) who owns two dental
practices. When Ian asked me what I do for a
living, I explained to him that I teach people
an efficient, more profitable way to make
money with less risk.
I went on to explain to him that I use options
to create risk/reward scenarios that shift the
probability of success in my favor. Of course,
he thought options were riskier than stocks or
mutual funds.
5. And believe me, Iāve heard it all before; options
leverage is dangerous, they are too complicated,
they are good for trading not investing, they lack
liquidity and trading costs are too damn high.
Donāt get confused. Some of these concerns are
actually legitimateā¦that is, back in 1994. Fast-
forward 20 years and these arguments simply
donāt hold true anymore. I told Ian, that most
investors (and even most investment
professionals) think the same. The overall
industry and investment education is still stuck
in the 90s.
6. You see, it hasnāt been until recently that
options have become a viable choice for
investors.
This is mainly due to improvements in
electronic trading platforms, analytic tools,
technology and competition amongst
exchanges to create better pricing.
I know a mouthful, right? But all these
aspects benefit you, the investor.
7. In addition, brokerage houses are fighting like
hell for your business, creating a price war,
which works in your favor by the form of
cheaper commissions and transaction fees.
Imagine being an āold schoolā investment
professional now having to learn about options.
These āprosā are so stuck in their old ways;
theyāll do anything to discourage you from
trading/learning about options.
Itās trueā¦ Iāve witnessed it with my own eyes.
8. For example, a couple years ago I was asked
to consult with small hedge fund ($100
million in assets) about using option
strategies to smooth out and enhance
performance.
When I sat down with the fund manager, I
started explaining some techniques that they
could start implementing. Of course, he was
nodding his head as if heād liked what I was
saying.
9. However, I knew that there was something
missingā¦my gut was telling me that we were
not on the same page.
Moving on, I started to ask some questions,
only to discover that he didnāt even
understand the difference between a call and
put option (the very first concepts you learn
about options)ā¦I was floored!
10. My shock started to turn into slight anger.
You see, people put their hard earned money
and trust into money managers like this all
the time. Donāt you think they owe it to their
clients to work hard to try achieving the best
results possible?
It still fires me up to this dayā¦thinking about
that meeting.
11. In all fairness, it wasnāt his fault. The mutual
fund and hedge fund business model is broken.
Sure, their pitch might sound sexy, but all
theyāre doing is selling and collecting assets for
a (undeserving high and sometimes hidden) fee.
Letās face it, weāve all been sold on the idea that
we need to hand over our money to an
investment professional. That theyāve got a
plethora of research, proprietary models, signals
and information that give them an
edgeā¦knowing when to buy low and sell
highā¦yada, yada, yada.
12. News Flash!
Less than one percent of managers have beat
index funds over the last ten years. Please,
go back and read that sentence again.
O.K. good - Thatās right folksā¦and thatās
not just me saying it, this hard to swallow
statistic comes from Motley Fool. In fact,
according to their study in 2013, only ten of
ten thousand actively managed mutual
funds were able to beat the S&P 500
consistently over the past decade.
13. Like a lamb to the slaughter.
Not only that, but these funds have to be fully
invested at all times. Nothing makes their
greed glands secrete more than the
management fees they stiff you with. The
more money invested, the higher the fee they
collectā¦
14. Now, when I asked Ian how this broken
model was working for himā¦he simply told
me, āJosh, itās notā. I agreed to meet up with
Ian at a local Starbucks to continue our
discussion at a later date.
Sure enough, a couple weeks passed and
there was Ian at Starbucks, right on time as
we planned. From our previous discussion, he
told me that he knew nothing about options.
15. However, he did want to make his money
work harder for him. In addition, he was open
to learning about a better, more efficient way
to grow his wealth. After all, he had invested
$200,000 in various mutual funds with subpar
results.
As with anyone I teach, I went over the basics
behind options and how theyāre used to
achieve unordinary resultsā¦all while
skewing the risk/reward in your favor. I later
busted out my MacBook and logged into my
options trading platform.
16. First, I showed him what an option chain is
(options jargon for a list of all tradable
options for a particular stock)ā¦I noticed his
eyes started to gloss over.
Believe me, learning about options at first can
seem very overwhelming. There is no shame
if you ādonāt get itā right away. In fact, Iād be
surprised if you pick up the ball and run.
17. After all, the reason why most investors stick
to stocks and mutual funds is because they
are so damn easy. Itās the same thing when
you go to the casino and become surrounded
by so many slot machines. Needless to say,
itās a game where the casino has the biggest
edge.
You see, with stocks, you either buy or sell
short and you have a 50/50 shot of making
money. However, with options you can create
odds in your favor from 63%-92%.
18. Look, I understand options are tough and
there is a learning curve, but if you can create
better opportunities for success with options
than stocks, why wouldn't you take a little
extra time to learn?
19. Heck, Iāve been doing it for a decade now
and still continue to learn. Here are the four
reasons why you should consider:
Leverage- Use less money to achieve higher
returns. Options provide a better use of
capital and a better return on capital (ROC)
Better odds - Structured option strategies can
create more favorable probabilities of success
than equities
20. Reduce risk - Structured option strategies
will create max loss scenarios before entering
the transaction. You also reduce risk by using
limited capital and not fully invested.
Versatility: With options, youāre not
vulnerable to any specific market condition.
For example, there are strategies for high-
volatile markets, low-volatile markets,
trending and sideways markets. With stocks
you always have to make a directional bet.
21. Now, when I explained to the hedge fund
manager these reasons, this is what he told
me:
āJosh, this all sounds good, but with what
youāre suggesting we would not be fully
invested. Our business model is based on fees
and we make the most being fully invested.ā
22. āWeād like to achieve better returns for our
clients, but only slightly better for marketing
reasons. We donāt want to do that good for
our clients, because they might not believe it
and we donāt benefit. Our compliance officer
suggested options are too risky and we would
need to re-evaluate all of our clients.ā
23. This is the reason why I need to teach people
like Ian and you, a betterā¦more successful
way to investing, because these people arenāt
going to be anytime soon.
And, as always, Iāll continue to debunk the
myths about options and investing to all my
readers.
24. In fact, Iāve decided to do you one better.
After coaching thousands of students and
responding to countless emailsā¦ I began to
notice a pattern in the questions I was
receivingā¦a lot of them sounded the same.
I could sense that investors wanted to learn
about options, but were worried that they just
wouldnāt get them.
25. You see, options can be very complicated if
youāre not given proper directionā¦ and if
youāre like most people, youāre busy with
work, family life and maintaining health.
Letās face it, we just donāt have the same free
time we did as kids.
Thatās why I created a super-easy to
understand book, filtering out all the noise,
specifically geared towards those interested in
making the transition to options investingā¦
for quick and painless results.
26. Itās called Fearless Income For Leverage,
something Iām very proud of. And I want
anyone who has ever thought about getting
involved with options to read it.
Thatās why Iāve made it so affordable for
everyone to pick up. Not only that, Iām so
confident youāll get valuable use out of it
(maybe even change the way you view
investing forever)ā¦
27. Iām offering a thirty day, no questions asked,
money back guarantee if youāre not 100%
satisfied. Honestly, what do you have to lose?
Click Here To Purchase The Digital Copy
of My Book 'Fearless Income For
Leverage'
28. You can even download a free sample before
you decide to buy. Let me know your
thoughts below and how I can help you
understand options better.