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Few things can get your blood rushing more than doubling your money on a stock in just a few weeks -- instead of watching it stay flat or (worse) go down. And my colleague Bernie Schaeffer does it all the time! In 2003, Bernie and his subscribers:
See a pattern emerging? Bernie Schaeffer is literally doubling his subscribers’ money on a new stock at least once a month … sometimes more often. In 2003, 24 of his trades returned profits of 100% or better. No wonder his opinions on the market – and his stock picks -- are regularly quoted in Forbes as well as in The Wall Street Journal, Barron’s, The New York Times, Fortune, CNBC, and other major media nationwide.
There’s no magic or mystery about why Bernie Schaeffer has been earning his subscribers triple-digit gains since 1981: He understands and interprets market and business fundamentals extraordinarily well. For instance, when eBay reported fourth quarter earnings that trumped Wall Street’s estimate by four cents per share, the news sent shares to a 52-week high on heavy volume. The stock broke above former resistance at the 70 level with strong support from its 10-day and 10-week moving averages. On January 22, Bernie recommended a July 65 call. Following a slight pullback to support, eBay resumed its steady trend higher, and Bernie’s Option Advisor subscribers made a 100% profit in approximately 3 months. And when disappointing earnings from Nokia left the shares poised for a sharp drop lower, Bernie recommended an April put position, betting that the stock would fall. “Nokia’s rally from its August 5 bottom had failed to reach the doubling point of 20.44 at its peak on December 2,” says Bernie. “In addition, Nokia’s short-interest painting a bearish picture.” Within 4 weeks, Option Advisor subscribers had pocketed a 100% profit on this trade.
What a costly mistake! With a subscription to Bernie Schaeffer’s Option Advisor, trading an option on IBM or Nokia is as simple and easy as buying the stock itself. Both can be done with a simple call to your broker – and Bernie tells you exactly how to place your options order. But options give you a tremendous leverage that owning stocks outright does not! For instance, suppose CitiGroup is selling for $40 and you think it’s going to go up. To buy 100 shares, you have to put up $4,000. Say the stock goes up to $50. You sell your 100 shares for $5,000, and your profit on the trade is $1,000 – a very respectable gain of 25%. If you had bought an option, however, you would have paid only $250 to control those 100 shares of Citigroup. Your profit on the trade would have been the same: $1,000. But you only put up $250 to get it. Your return on investment: a whopping 300%. Plus, Bernie’s low-price options contracts allow you to control shares of the quality companies he is buying for pennies on the dollar. That means lower up-front cost and minimal downside risk. For instance, if the Citigroup trade had gone against you, you could have lost a lot of money – after all, you had $4,000 at stake. With Bernie’s safe options play, your risk was limited to the $250 cost of the contract.
Bernie Schaeffer won The Wall Street Journal’s stock-picking contest three times. And Timer Digest ranks Bernie the #1 long-term market timer from 1999 - 2002!
Charles Morgan Associate Publisher,
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