It’s the start of a new month, a new year, a new decade – welcome to 2020, Power Profit Traders.
People everywhere are coming up with new year’s resolutions. Go to the gym more often. Meal prep lunch every day. Read more, and watch less TV.
The list goes on. But the most popular resolutions all fall under one category, be they to invest more, build retirement savings, or pay off credit card debt – and that category is financial.
Now, here’s the thing. All of these resolutions are great. But after just a few months, life gets in the way. According to U.S. News and World Report, 80% of people break their resolutions – and most fail by February 1.
That’s why today, I’m going to show you the easiest way to meet all of your financial goals. This strategy has stood the test of time since 1972. And every year since, it’s been able to produce an impressive set of profits for traders everywhere.
Here’s the best way to reach your new year’s resolutions…
How to Double Your Money on the Dow’s “Flying Five”
The “Dogs of the Dow” is one of the simplest investment strategies out there. Just find the 10 stocks in the Dow Jones Industrial Average with the highest dividend yield. Invest equal amounts into each of them, hold them for an entire year, and boom – watch the profits roll in.
But it gets even better than that. Of those 10 stocks, you can pick the cheapest five. These are called the “puppies,” or the Flying Five. But instead of buying and holding the stock, you could buy and hold the options – and make a ton more cash in the process.
You don’t have to take my word for it. Just take a look at how this strategy treated my readers in 2019…
On the last trading day of 2018, one of the Dow’s Flying Five was telecommunications conglomerate Verizon Communications Inc. (NYSE: VZ).
Now, if we were following the traditional Dogs of the Dow strategy, we would have bought shares of VZ on the first trading day of the year. But on January 2, 2019, VZ was trading around $56.16. For 100 shares, that would have cost a whopping $5,616.
I don’t know about you, but December can be a huge drainer on my wallet with the holidays. So $5,616 is a ton of money to drop right at the start of the year.
So, instead of investing a ton of cash into VZ, we took a look at the options – and created a Loophole Trade instead.
Now, you know that I’m typically a short-term options trader. I like to see a ton of cash fast. But in the case of the Flying Five, that strategy won’t work. Instead, we want to look at long-term equity anticipation securities (LEAPs).
So, we looked at VZ’s options expiring on January 17, 2020. By purchasing options a year out from expiration, we’re able to rake in all the benefits of the Dogs of the Dow strategy – and then some.
My readers bought a January 17, 2020 $57.50 call while simultaneously selling a January 17, 2020 $62.50 call – spending just $1.75, or $175 for control over 100 shares, for their Loophole Trade.
So, what’s next?
Well… nothing. All we had to do was sit and wait. That’s the beauty of the Flying Five strategy – it’s one of the simplest ways to make money. As VZ shares slowly climbed up throughout the year, so did the value of our Loophole Trade.
Then, near the end of the year, on December 6, 2019, VZ had risen to trade around $61. If you had bought the stock, that’s an 8% gain. Not bad – but we were able to sell our Loophole Trade for $3.50.
That’s an impressive 100% gain! And that’s just on one of the Flying Five stocks.
Altogether, my readers had the chance to take home 483% in 2019 using the Flying Five strategy. And this year could be even better – I’m talking projected gains of up to 1,000%!
Now, I said this was one of the easiest ways you can meet your financial goals for 2020. And I meant it. You don’t even need to put in the work to find which stocks to play and how to play them. Instead, I’m doing the heavy lifting for you…
I’ll tell you everything you need to know for the potential to make up to 1,000% this year. To learn how to take advantage of this once-a-year opportunity before it’s too late, click here.
To your continued success,
Tom Gentile
America’s #1 Pattern Trader
