“How about 4,200 bucks?” you ask. “We’ll have a deal.”

It’s Sunday, February 2. And you’re standing outside of Hard Rock Stadium waiting to watch the Kansas City Chiefs face the San Francisco 49ers.

On a last-minute decision, you’ve flown to Miami for Super Bowl LIV (54). And for the last 10 minutes, you’ve been haggling with a scalper for a ticket.

“Forget it,” he says. “The market value is $4,500, easy. And I bet I can find someone who’d pay at least $4,800.”

As he starts to disappear into the crowd outside the stadium, an idea hits…

“Wait!” you yell out. “I have a new offer – a contingency deal.”

“How about I promise to buy the ticket for $4,200… any time up until 10 minutes before kickoff. Between now and then, you can try to sell your ticket for 4,800 bucks. But if you can’t, you sell it to me for $4,200.”

“What’s in this for you?” he asks.

“Well, first, I get the ticket at the discounted price I want. Second, I want you to pay me $400 cash right now – in exchange for giving you this guarantee. And I get to keep the cash regardless of whom you end up selling the ticket to.”

He thinks for a moment… then agrees to the deal. After all, by agreeing to your deal, he knows he has a guaranteed buyer for his ticket – no matter what happens.

Congratulations! You just learned the essence of our Alpha Edge low-ball strategy.

Now, I doubt any scalper would actually agree to a deal like this. But it’s an effective illustration of how we make money with options, week in, week out…

Today, I’ll tell you how Daily editor Teeka Tiwari and his chief options analyst William Mikula use this simple, profitable strategy to make consistent double-digit gains in all market conditions. Plus, I’ll show you three low-ball offers on their radar…

Options Are Simpler Than You Think

Many investors see “options” as mysterious, complex, and dangerous. But an options trade is nothing more than a deal between two parties. That’s it.

Only, instead of agreeing to buy valuable Super Bowl tickets, we agree to buy valuable blue-chip stocks. They’re the stocks of the safest, sturdiest companies in the world; companies with beloved products, decades of outperformance, and iconic brands.

Think Apple, Microsoft, or Johnson & Johnson…

Similar to the Super Bowl ticket example, our options deals come with conditions…

They last for a specific number of days – that we choose. Plus, we choose the preset discount price we want to pay for them beforehand.

In exchange for making these deals, we earn upfront cash. And we keep it… regardless of whether or not we end up buying the underlying stock (or the ticket, in this case).

That’s what makes trading options such a powerful strategy. “Keeping the cash, regardless,” transforms even flat markets into highly profitable ones.

Consider this…

In 2019, the S&P 500 returned 28.9%.

Now, those are impressive gains for buy-and-hold investors. But in 2019, William led Alpha Edge subscribers to annualized gains of 39.4% with a 100% win rate.

And on average, William’s trades last about two months. So it doesn’t take long to realize profits.

But here’s the thing… Teeka and William constructed their Alpha Edge strategy to work in up and down markets. In fact, William’s low-ball offer strategy works even better when there’s more volatility.

Here’s what Teeka had to say about his chief analyst’s performance:

I’ve never met anyone with his sheer skill at profitable options trading. It’s easy to dismiss his performance as just a by-product of a bull market – but that would be a mistake. I’ve seen William crush some of the best hedge funds in the world during some of the most difficult markets I have ever seen as a professional investor.

For instance, back in 2015 and 2018, when “superstar” hedge funds like Greenlight Capital, Pershing Square Capital, and Glenview Capital posted average losses of 18.3% in ’15 and 17% in ’18… William posted annualized gains of 15.7% and 24.4%, respectively, with a win rate of 100% in both 2015 and 2018. That’s just phenomenal outperformance.

As you can see, it’s possible to make strong returns even when the market is flat or down on the year.

The Right Time to Strike

In technical terms, low-ball offers are the same as selling put options. Think of them as a form of stock market insurance.

Now, put options pay heftier premiums when volatility (fear) increases in the market. The more fearful investors are, the more they’ll pay for the protection we provide.

Right now, we’re in a low-volatility market. So premiums aren’t as high as they would be in a high-volatility market.

But here’s the thing… periods of low volatility are always followed by spikes in fear. It’s one of the few “truisms” in trading.

And there are plenty of events on the horizon that could send volatility rocketing…

Geopolitically, we have ongoing tensions in the Middle East… U.S.-China trade agreements breaking down… and fallout from the U.K.’s Brexit impacting global trade.

And within the U.S., the impeachment trial of President Trump got underway last Thursday… while the upcoming 2020 presidential election promises to be just as controversial as 2016’s (if not more so).

To prepare for a spike in volatility, I asked William to put together a watch list for Daily readers. If the VIX goes above 20 again, he says be ready to strike on these trades…

Stock

Ticker

Wait for price to drop to…

Make a low-ball offer to buy shares at…

*This will give you a “cushion” of…

And target an annualized return of…

Stop making low-ball offers when the price hits…

Coca-Cola

KO

$50

$47

6%

20.5%

$60

Microsoft

MSFT

$150

$145

3.3%

25%

$170

Johnson & Johnson

JNJ

$130

$125

3.8%

22.8%

$150

If you don’t know how to make a low-ball offer (sell a put option), then simply buy shares when they drop to the level indicated in the fourth column.

And remember – as with any investing strategy – put options carry risk. For instance, you could end up owning the stock if it falls below your agreed-upon price.

But in Alpha Edge, Teeka and William only make low-ball offers on quality companies they’d want to own at a discount, anyway.

So even if you do end up owning these companies, they’re quality names that pay strong dividends and will appreciate over the long term… while padding your investment account with cash and profits.

Regards,

Chaka Ferguson
Managing Editor, Palm Beach Daily

P.S. As I mentioned above, Teeka’s low-ball strategy works best in volatile markets. And there’s a time-sensitive investment opportunity he’s seeing involving Brexit.

It could unlock $300 billion in profits for U.S. investors – and put you on the path to collecting thousands or tens of thousands of dollars (and perhaps even over $100,000). But you’ll only have a few hours to act, if you wish to take part.

Teeka’s put together a confidential briefing on this opportunity. You can click here to watch it now.