“It’s good to keep your options open.”
That’s one of the many slices of advice my father was fond of raining down on me in my youth. And though it is somewhat of a cliché, it’s also a pretty sound way to live. You see, what you want in life are choices, because the more choices you have, the better able you are to live the life that’s right for you.
When it comes to money, here, too, the more options, i.e. the more choices, the better. In fact, money should be looked at as a form of “choice currency.” What that means is that the more money you have, the more “units of choice” you have. And when you think about money that way, you realize that the more units of choice you have, the more you are able to “keep your options open” in life.
If you are a subscriber to one or more of my newsletter advisory services, you know that those publications are all about gaining a deeper understanding of the world at large, and in particular, gaining a better understanding of the machinations of the economy and the financial markets. And, of course, they’re also about knowing which asset classes and which investments are likely to work best to achieve the overriding objective of increasing our “units of choice.”
Now, since December 2018, subscribers to my Bullseye Stock Trader service have been profiting mightily by buying the right stocks — and the right options on those stocks — that give us the ability to achieve double-digit- and triple-digit-percentage gains. It’s those kinds of gains that give you those outsized “units of choice,” and I am very proud to have delivered on that front to subscribers over the past three years.
In fact, from late December 2018 to early December 2021, we have achieved an annualized return on all closed positions of 113.84%!
Moreover, our average holding time on each closed position is just 56.75 days! So, as you can see, we are collecting those gains fast — or to put it more eloquently, we are achieving these gains with “high velocity.”
Indeed, the concept of “high velocity” when discussing trading strategies is one that I like to use, because I’ve always been a fan of things that move fast. Fast cars, fast motorcycles, fast horses: they all have a special place in my fast-beating heart. And, of course, fast profits, i.e. high-velocity profits, also hold a special place in my head and my heart.
High velocity wins on the racetrack, and in your options trades.
Now, because of the success in my Bullseye Stock Trader service, I’ve had many subscribers ask me, no, beg me, for more trading advice.
And curiously, these subscribers were more interested in the high-velocity options trades than the common stock trades. In other words, the demand was overwhelming for an additional trading service that focused only on options trades, and one that didn’t even include stock recommendations.
So, being a person that’s always persuaded by good reader ideas, I went to the drawing board with my publisher to figure out how we can bring out a service that uses my same winning investment strategies, yet that is ALL OPTIONS.
Well, after a few weeks in the think tank, we achieved our objective.
The result is my new ALL-OPTIONS trading service, which we appropriately call “High Velocity Options.”
This new service focuses on identifying “slightly out of the money” call AND put options with expiration dates of anywhere from 30 to 120 days, on average. These are the options trades that, based on my analysis — the same analysis that has more than doubled readers’ money every year in Bullseye Stock Trader — are perfectly positioned to help generate double- and triple-digit-percentage profits.
Now, another slice of advice my father was fond of telling me is that in life, “Timing is everything.” Well, that’s yet another cliché, but here again, it’s very sound advice. And that’s especially true for trading. You see, when trading options, you have to get your timing right. Yet timing is just one of the many factors I use when identifying the best options trades.
Oh, and speaking of timing, if you’re reading this, then your timing also is great, because this article was written on Dec. 8, just six days before the official Dec. 14 launch of my new “High Velocity Options” trading service.
This service is designed for investors serious about making big profits, fast. It’s also intended for those who want simple, easy-to-follow options strategies that involve buying calls and puts.
The put-buying element is one that distinguishes this service from my others, because it allows us to make money when the market is trending lower. Of course, despite the recent flux, we remain firmly ensconced in a bull market, and we have since about May 2020.
Yet as we all know, there are times when stocks are going to trend lower, and there are times when certain sectors of the market are trending lower even when the rest of the market is soaring. When that happens, you need to be able to make money on the downside — and that’s what we intend to do, and expertly so, in High Velocity Options.
For more details on how you can become a charter member of High Velocity Options, and how you can be on the inaugural launch call via Zoom, simply go to my special offer now.
So, if you want more “units of choice” in life, then come along with me and we will “keep our options open” together in High Velocity Options.
ETF Talk: A Fund That Profits from Real Estate Trends
COVID-19 has done a number on the real estate market. In many places, the sellers’ market exacerbated by COVID-19 still persists, and that can make things difficult for people or businesses looking to secure a location. So, those individuals and businesses that already own real estate, whether to sell or in this case primarily rent, have found themselves in an advantageous position. One potential way to take advantage of this trend is through an exchange-traded fund (ETF) like iShares Residential and Multisector Real Estate ETF (REZ).
This fund invests in a broad swath of U.S. real estate investment trusts (REITs). This includes residential REITs, health care REITs, and specialized REITs such as Public Storage (PSA). This fund was recently changed from its former investment strategy focused only on residential REITs – hence the ticker symbol. The fund has some built-in diversification measures, including a clause stating that holdings over 5% can make up only 45% of assets.
REITs are usually dividend-paying investments due to their legal structure. As a result, REZ pays out close to 2%, which is higher than many ETFs. The fund’s expense ratio of 0.48% is ordinary. Assets under management total $1.25 billion.
REZ has had solid results this year, up 38.9%. It has averaged returns of about 12% annually, not including dividends, over a longer time frame.
Chart courtesy of StockCharts.com
REZ has 44 positions in total. The top 10 holdings have just under 60% of the fund’s assets invested in them, and they include Public Storage (PSA), 9.86%; Welltower Inc. (WELL), 7.59%; AvalonBay Communities Inc. (AVB), 6.64%; Equity Residential (EQR), 6.48%; and Invitation Homes Inc. (INVH), 4.83%.
For investors seeking to make profits from the domestic real estate market as a whole and gain some nice dividend payouts at the same time, iShares Residential and Multisector Real Estate ETF (REZ) is an investment that may be worth consideration.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
Trees You’ll Never Climb
It’s hard to see what you’re goin’ through
Just knowin’ can beat up on you
You’ll spend some time in the waitin’ place
And the purest things may leave no trace
Go up the mountaintop and shine
I’ll reflect it on my long decline
I’ve gathered sunsets in my prime
Now I’m plantin’ trees I’ll never climb
— Brett Dennen, “See The World”
The mellifluous voice of singer/songwriter Brett Dennen is a treat for those who love beautiful music. But what’s even more impressive is his lyrics, which are often delightfully optimistic yet also tinged with a bit of well-placed and thoughtful sadness. In his latest release, “See The World,” he reminds us that as we age, we collect memories that are glorious. And we can and should plan to leave something behind, because our actions today affect the world even after we’re gone. So get out there and plant some trees you’ll never climb. The world will thank you even if you aren’t around to hear it.
Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.