Collect Income While The Dreaded ‘Triple Top’ Destroys Wealth
There is a lot of discussion lately that we are reaching the peak of a dreaded “triple top.”
Here are just a couple of the many warnings from market experts…
#-ad_banner-#– If the S&P 500 and other major U.S. indexes are turned back at today’s critical, even historic, juncture, we could see a significant upcoming decline in the U.S. stock market as history repeats and also rhymes. – MarketWatch, “Is this the biggest triple top ever?”
— A third top has now formed, and a 60% stock market drop is inevitable – and it could strike at any moment. – MoneyNews, “Market Collapse Predicted By Scientist”
That’s just a sampling of the reports that are being released almost every day.
In 2000 and 2007, the S&P 500 peaked near current levels. The market then plummeted, causing long and agonizing bear markets. These crashes eliminated trillions of dollars in wealth and eroded investor confidence. J.P. Morgan Asset Management recently published this chart highlighting the S&P 500’s inflection points over the past 16 years.
As you can see, the market ballooned from 1997 to 2000 and from 2002 to 2007. But both increases were answered with sharp tumbles from both the tech bubble burst (-49%) and the financial crisis (-57%). And the latest uptick is even sharper — 132%. That holds the potential for an even steeper drop.
But I’m not worried. In fact, you can reap immediate income without worrying about the market — because you won’t have to own any shares to profit. In other words, Mr. Market can watch the news. He can watch the blog posts. He can soar to new highs or sink to new lows.
But this volatility won’t make us panic or pull out of the market — in fact, this volatility should increase our returns.
I am talking about selling options.
I know many people are hesitant to dabble in the options market. After all, statistics show that 80% to 90% of investors lose money trading options. It’s hard to blame anyone for avoiding options given this statistic… but it’s actually not true.
What is true is that 80% to 90% of options buyers lose. But, if 80% to 90% of buyers lose money, then 80% to 90% of options sellers make money.
When we sell an option, we get money deposited in our brokerage accounts. It’s called a premium, but I like to call it “Instant Income.” We get paid upfront for options that more than likely will expire worthless. That may sound like a bad thing, but it’s actually what makes my strategy successful. When an option I am selling expires worthless, that means I keep that “Instant Income.” And so far, all of my trades have been winners.
And this is just one part of my strategy. There is a lot more I want to tell you about options and the potential triple top that could send the stock market tumbling. But regardless of what the market does, I’m confident my “Instant Income” strategy will continue to deliver winners. My team and I put together a new report to explain exactly how selling options works and how you can get started today.
P.S. — Since I’ve started telling people about my strategy, I’ve helped investors make thousands of dollars. One reader said: “When I first started using [Amber’s] picks, my goal was to earn $500. Then I quickly realized I can earn at least $1,000 per month.” So far, every single one of my suggested trades has made investors money. I hate to brag, but a 100% track record is nearly unheard of. To learn everything you need to know about selling options, click here.