Summary of 10K Investment Strategy

I have a quiz for you...which investment is best?

Stock Purchase (#1) - Profit area = orange + red (purple area is a loss for stock purchase)

Option Portfolio (#2) - Profit area = yellow + orange (loss doesn't start in until $84)

This graph depicts what will happen in one month if $10,000 is invested in the S&P 500 tracking stock (SPY) when the stock is trading at $95 (Investment #1) compared to $10,000 invested in an options portfolio using our 10K Strategy (Investment #2).

Buying the stock only results in a profit when the stock goes up. If it goes up more than 10% (from $95 to $104), the stock purchase will do better than the options portfolio. However, SPY has historically gained over 10% in a single month only about one month out of 20. In the other 19 months, the option portfolio should do better (unless the stock falls over 12%, also an unlikely event).

The option portfolio could gain over 15% if the stock fluctuates by 5% or less in either direction. Yes, that means if the stock falls by 5% in the month, the option portfolio could gain about 15% while the stock portfolio loses 5%.

How the 10K Strategy Will Typically Perform:

If the market falls by 5% in a single month, the strategy will make a profit.*
If the market goes up by less than 8%, the strategy will make a profit.
If the market is about the same at the end of the month as at the beginning, a large profit will result, usually 10% or more.
If the market falls by more than 5% or goes up by more than 8% in one month, a loss may result, although cash is set aside for adjustments to minimize the potential loss.

*In rare circumstances, a 5% drop in the market might result in a loss for the options portfolio. See Conditions Which Might Cause a Loss.

What the 10K Strategy is Based On: Rather than trading options on an individual stock as the underlying, we use indices made up of a large number of companies so that unusually bad (or good) news for a single company does not result in a sudden and sharp move in the stock price. Since the 10K Strategy performs best when there is only a moderate fluctuation in either direction, we try to avoid underlying stocks or ETFs with high volatility.

Our more conservative portfolio, Boomer's Revenge, uses the S&P 500 tracking stock, SPY, as the underlying. SPY is made up of the 500 largest industrial companies in the market, and is considered by many people to be "the" stock market. See a list of S&P 500 Component Companies.

How it Works: The 10K Strategy is similar to buying stock and writing calls against the stock, except that LEAPS (call options with one or two years of remaining life) are used as collateral rather than stock. Faster-decaying short-term call options are sold at several different strike prices to reduce risk.

Why it Works: The strategy is based on the simple fact that options decrease in value (decay) every month of their existence (assuming that the underlying stays flat), but the rate of decay varies considerably. In the final month, an option may decay at four or more times the rate it decays in a month when it has two years of remaining life. The 10K Strategy involves buying the slowly-decaying long-term options (LEAPS) and coincidentally selling fast-decaying short-term call options against the LEAPS See Sample Decay Graph.

Where it is Carried Out: The strategy is carried out in an actual portfolio at BoomersInvesting.com - Boomer's Revenge, $10,000 per unit. Insiders can mirror either or both portfolios in their own account with that starting amount or multiples thereof. Most subscribers have the trades done for them through Auto-Trade so they don't have to monitor the market and be alert for Trade Alerts on their own.

How To Start Your Nest Egg Growing:

You open an account at thinkorswim (voted by Barron's as the #1 on-line options broker for 3 years running). While we recommend that this account be an IRA (see why), it can be a regular brokerage account as well. If you have funds in a 401(K) plan, you may want to transfer some to your own self-directed IRA (see 401(K) Transfer Considerations).
You become a BoomersInvesting.com Insider and agree to pay our low monthly subscription fee for one portfolio. The first month is free, there is no set-up fee, and you can cancel at any time. We believe that if you're not making superior returns with this portfolio, you shouldn't be paying for it.
You authorize thinkorswim (through their Auto-Trade program) to set up and make all the necessary trades in your account for you (after you decide how much money you want to invest).
You get a monthly newsletter (by email) which discusses how the portfolio has worked out for the last month. Of course, you can always check your own account at any time to find out how you are doing.
At the end of each expiration month, we withdraw gains over the starting amounts of the portfolio in increments of 3% of the starting values so that new investors can participate for approximately $10,000 for Boomer's Revenge. In your account, you decide whether you would like to leave the cash sitting there, withdraw it, or invest it in something else.

The BoomersInvesting.com service is designed for busy Baby Boomers who simply want to earn exceptional returns on their invested capital without learning the intricacies of the complex world of stock options. If you are interested in learning more, please visit the Boomers Investment Library.

Are you ready to read the whole story?

I have written a White Paper that gives you complete details about the 10K Strategy .It is similar to another White Paper I wrote which costs $79.95 (and over 10,000 copies were sold). I will give it to you absolutely free, in exchange for one little favor from you.

That favor is simply to ask you to forward a copy of this short Summary to another Baby Boomer who might be interested in learning more about a high-yielding alternative investment strategy involving options. You might benefit from another set of eyes checking it out, and I might benefit by having more people become familiar with the 10K Strategy.

Why am I offering you the White Paper for free?

If the 10K Strategy is so valuable, you may wonder why I am offering you the details without asking for any payment. I think I have some good reasons. First, I expect that you are not willing to risk your hard-earned money on anything that you don't fully understand. As a Baby Boomer, you have been subjected to just about every imaginable claim and promise for your entire life, and you are just too smart to accept an unconventional idea without knowing the full details.

Second, I don't think you will want to carry out this strategy on your own. You have too many other things going on in your life. You have better things to do other than to keep your eye on the market every day (that is my only job, and I love it with a passion).

Third, I suspect that once you see how this strategy works, you will want to invest some of your Ultimate Third money in a strategy that might yield many times what you could earn with a conventional investment. You can accomplish this by signing up for a discount broker's Auto-Trade program, and asking him to follow one or both of the portfolios I conduct using this strategy.

Get your free copy of the White Paper right here:

Yes, please send me the FREE White Paper.

You should receive your copy by email in a few minutes. I will also send you a copy of this Summary for you to forward on to another Boomer. Thank you, and happy reading!

Terry