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Secret Buffett Trading Strategy Revealed


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- Marketplace Review

As part of our ongoing effort to provide you with the safety and profits you require, here's a look at some of the top investment strategies we've uncovered that will deliver big yields under any market conditions.

Buffett's Big Secret!

Jim Fink

Warren Buffett made $4.9 billion trading options. How? He knows something most investors don't. Trading options doesn't have to be risky. In fact, it can be safer than trading stocks. What does Buffett know about options that you may be missing? A secret so big it could see you with thousands of EXTRA dollars in your pocket every month. Details here.

Secret Buffett Trading Strategy Revealed

Jim Fink

I bet you think you've heard everything about Warren Buffett.

After all, he's the world's most famous investor. His every utterance is dissected in the financial press on what seems like a daily basis.

But there's something about Buffett that I'm almost certain you don't know.

He trades options.

That's right. The man who made super-safe “value investing” a household word trades options! And no small amount, either. Over the last decade, Buffett has racked up a whopping $4.9 billion by trading options!

He's done it by relying on the same no-nonsense, conservative approach to options that has made him a legend in the stock market. Why? Because he realizes something most investors don't: trading options does NOT have to be risky if you stick to a few super-conservative strategies.

How to Profit on 80% of Your Trades … Without Breaking a Sweat

Right now, I'm helping a small group of investors use the same super-safe strategies Buffett uses to pocket extra income—like $1,300, $1,950 or $2,700—several times each month through my Options for Income advisory.

These powerful strategies couldn't be easier to put to work. All you need is an extra 9 minutes a week.

The best part? They're actually SAFER than trading stocks. In fact, they're so effective, I guarantee you'll make money on 80% of your trades.

I know that sounds crazy, but that's the success rate my Options for Income readers are enjoying right now (82%, to be precise). Between the service's launch on April 21, 2011, and January 15, 2014, they've pocketed a 77.1% annualized return. That's practically unheard of for most investors—in stocks or options!

(Just days ago, I released my very latest recommendations to Options for Income subscribers. Read on to learn how to get your hands on them with no obligation whatsoever.)

The business media is just beginning to pick up on the power of options trading. In a recent article, Forbes magazine said it was “like finding money in the street.” Barron's says it's “too often ignored by investors.”

Now that I've shown you some of the low-risk gains my approach is generating, let's take a look under the hood and see how straightforward it really is.

Which brings us back to Mr. Buffett.

How Buffett Takes the Risk Out of Options

You may be familiar with the legendary Buffett investing rule: “Rule No. 1: Never lose money. Rule No. 2: Don't forget rule No. 1.”

I hate losing money as much as Buffett does. That's why I don't buy options, and neither does Buffett. Instead, we sell them.

Studies show that options buyers lose money on 7 out of every 10 trades they make. That's because they're mostly speculators. They place high-risk trades hoping for a big payout, and that's why they strike out 7 times out of 10.

But when you sell options, you put the odds in your favor. Because every time the buyers strike out, you keep the money. That makes selling options about the closest you can get to almost never losing money when investing.

Here's how it works:

When you sell an options contract, you're selling the right to buy a particular stock at a particular price, which is called the strike price.

Say you're selling contracts of Microsoft, and the stock is sitting at around $37. A buyer might pay you $100 per contract for the right to sell, or “put,” the stock to you if the price falls to around $33 a share (about an 11% drop).

If you sell 10 contracts, the buyer deposits $1,000 in your account, and you have access to that cash immediately. If the stock never falls to $33 a share, you simply keep the buyer's money. You're $1,000 richer without investing a single dime.

In the last few years, I've recommended that subscribers sell puts on Crown Holdings, Molson Coors Brewing, Berkshire Hathaway Class B, Apple and Casey's General Stores.

If you'd followed those 5 recommendations, you would have pulled in a total profit of $33,500—just by selling 10 contracts on those 5 trades. And because the stocks never dropped below the strike price, you wouldn't have to pay one dime out of your brokerage account.

Snapping Up Winners at a Bargain

I have to tell you something here: Even though investing this way is super-safe, it still makes some people a little nervous.

That's because if the stock price does happen to fall below your strike price, you could end up having to buy the stock at that price. That's why I only send out recommendations on stocks I think are good investments—companies I think any investor would love to own at a discount.

So even though I don't expect to ever have to buy a stock when I sell puts, I invest as if I might.

Think of it this way: if the stock takes a temporary dip and the put you sold is exercised, you end up buying 100 shares of a great company at a bargain. I think you'll agree that most investors would love to find themselves in a “losing situation” like this!

Knowing When to Swing

The biggest challenge in options trading is not figuring out what trade to make, but when to make it. Because entering a trade at the wrong time can mean the difference between a strikeout and a home run.

Again, Buffett put it best: “The stock market is a no-called-strike game. You don't have to swing at everything. You can wait for your pitch.”

Luckily, I have a secret weapon that tells me exactly when I should swing. It's called seasonality.

If you've heard the advice “sell in May and go away,” you're familiar with the concept. It is simply the tendency of the market—or sectors within the market—to move in a given direction during a particular time of the year.

Historical data shows that by following seasonal trends in stocks, you can boost your returns significantly. For instance, say you'd put $10,000 in the Dow Jones Industrial Average back in 1950. If you'd followed a buy-and-hold strategy, your $10,000 would be worth $650,000 by April 2013.

But if you'd followed the “sell in May and go away” approach and pulled your money out of the market from May 1 to October 31 each year, your $10,000 would be worth over $2 million by April 2013.

That's how powerful an indicator seasonality is. And it's why I incorporate it into every recommendation I make.

Start Collecting Your Instant Cash Now

I've just released a new special report that shows you all the ins and outs of my proven approach to options trading. It's called “5 Great Ways to Cash in on Options,” and it gives you everything you need to start collecting guaranteed cash payouts every month with a minimum time commitment. Yes, just 9 minutes a week!

You get it free when you take a no-risk 90-day trial to Options for Income. This incredible deal gives you everything I have to offer for a full three months, including fresh trade recommendations every Thursday, my personal responses to all your questions and much more.

But you must respond now! We keep a tight limit on the number of subscribers we accept so I can give each one the attention they deserve. As I write this, we only have 250 slots remaining.

Don't be left out. to grab your special report and start your risk-free trial now.

Editor's Note: If you had followed all of Jim Fink's recommendations since he launched Options for Income, you'd be sitting on an extra $208,100, assuming you traded 10 contracts on each one.

Imagine what you could do with a windfall like that. It's enough to pay for a very nice new car, a down payment on a vacation home or that big trip you've always dreamed of. That's how powerful Fink's strategy is, and I don't want you to miss this chance to experience it for yourself.

Grab your special report and start your trial now!

The New Baby Boomer Hobby That Could Earn You Extra Dough Every Month

Jim Fink

Baby Boomers across the country are using their new hobby to make thousands in extra retirement cash. I'm talking regular income like $800, $1,800 or $2,200 – several times a month. No second job or Internet knowledge required… and it takes just 9 minutes! So safe and profitable, even Warren Buffett uses it… More details here.

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The Secret to a Perfect Trading Track Record

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