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Profit From Experience

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The PSW Member Experience:

Market overviews: A daily outlook before and after the bell, often with trade ideas, notes on key indicators, and analysis of the day’s action.  Often Phil has market levels to watch that are the clearest indication you will ever get on when to enter and exit trades with rules that work for day traders and long-term investors alike.

Trading community: every trading day, our members swap ideas, advice, and post trades of their own. Phil responds to questions and ideas, often in real time. No other newsletter service gives its members this level of access and interactivity!

Virtual Portfolio management ideas: because we're all at different stages of the game, we discuss trades and strategies for those who want to take a longer or less volatile approach. We love to work with calendar spreads and income-producing strategies.

Education: new to options, or need some advanced strategies to jumpstart your trading? Our education section features one of the best options guides on the market today, Secrets to Explosive Stock Market Profits, as well as weekly educational posts.  You can read Section 1 of our options guide for free: click here to download.

Support: Our staff works hard to keep things running smoothly, and we respond promptly to any questions you have.

10 Great Reasons to Join Now

 

Keeping you on top of market events and giving you trade ideas is just a part of what we do at Phil's Stock World.  We also teach Stock and Option Strategies like Virtual Portfolio Management Techniques, How to Scale Into Positions and How to Stop Out with Profits - all useful things for any trader to know and practice!  Most importantly, we teach hedging strategies, both for your whole virtual portfolio as well teaching you How to Use Stock Options and ETFs to Hedge Your Individual Positions and Enhance Your Returns - Even in 401(k) Accounts!  (a link to Phil doing this live on TV is found below)

For instance, when we selected BAC as our "One Trade to Make for 2012" on January 5th, we were still concerned about a possible downturn.  Rather than just buy the stock at $5.75, we bought the stock and sold the Jan $5 puts and calls for a credit of $2.55.  This put us in the stock at net $3.20 with a call away at $5 (up 56%) if BAC is over that at Jan expiration and, if they finish below $5, the stock will be "put to us" and we will hold it at an average entry of $4.10, 28% off the January price.  Our break-even on the stock is then just $4.10 - even though we entered the trade when it was selling for $5.75.  As it turns out, BAC rocketed up to $10 (March 19th) and those Jan $5 puts and calls went to $5.20, which is net $4.80, already 89% of our expected profits in less than 90 days so the trade could be cashed out with a $1.60 profit on $3.20 invested in less than 90 days, an annualized return of over 200%!

In summary:  Buy a $5.75 stock for net $3.20 (plus .50 in margin on the short put).  Lower your break-even by 28% and you have a 56% upside on your cash committed AS LONG AS THE STOCK FALL LESS THAN 10% in 12 months.  Will learning strategies like this help you improve your trading performance?

This is just one of the great strategies we employ at Philstockworld, where we seek out value plays and utilize options to create significant hedging advantages for our members.  There are ways to do this with dividend paying stocks and Ultra ETFs and even the major indices - things you rarely hear anyone talking about to investors although it is certainly something that would benefit them far more than the usual "We think HOV is a compelling buy at $2.77" nonsense you get from other services.

Wouldn't you rather know that you can find a value stock like HOV AND be given a fantastic strategy to buy (in another late August trade idea for members) the Jan 2012 $1.50 calls for $1.35, selling the Jan $2.50 calls for .75?  On this trade you risk just the .60 net you may be willing to lose on a 20% drop in the  stock anyway but, with our trade idea, you make a 66% profit if HOV just holds $2.50, JUST $2.50, on Jan 19th, 2012 and you don't lose ANY money AT ALL unless HOV falls below $2.10 (24% downside protection for free)!

This is the sort of information that other services PROMISE to give you AFTER you subscribe but never give you at all or fall tragically short.  We are happy to share these strategies for free because we have DOZENS of excellent trade ideas EVERY week and the markets are dynamic - our service is not just about teaching you professional trading strategies but about identifying which strategy is right for each market situation and the BEST stocks to apply those strategies profitably to EVERY day!  Great strategies AND great picks - That's a winning combination that can make you money!  And it's not just the long-term trades that we excel in - Here's a link to one of our great day trading sessions, where 6 winning picks averaged 42% SINGLE DAY returns and 1 losing trade dropped 10%.

These are techniques we will teach you to that you will be able to se in ANY market direction.  Here's a link one of our Weekly Wraps which reviews 32 winning and 4 losing trades FOR THE WEEK with returns that averaged 39% - FOR THE WEEK!  You can browse our achives for ANY Weekly Wrap-Up and see similar performance...

Why are we so consistent?  Very simple (but don't tell anyone else!) - We teach you to BE THE HOUSE, not the hapless gambler!  When you go to a casino - how often do you win?  How often does the house win?  Does Steve Wynn have a nicer house/car/boat/plane than you?  Well, using our stock option strategies, we can place you on the OTHER side of the table from the investing masses - MOVE OVER TO THE WINNING SIDE!

Profit From Experience

We trade stocks AND options.  There is a reason options trading is the fastest-growing segment of the investing community.  Through good times and bad, the number of option trades set all-time records in 16 of the last 17 years. In fact, despite the recession that tainted the early part of last year, more than 3.6 billion contracts were written in 2009.  Those who know exactly what to do are winning consistently and substantially. But most don't know what to do. In fact, most investors lose on options trades.

Most buy options on the cheap and out of the money. They wrongly jump in close to the time the contracts are about to expire and snatch them at the lowest prices.  In general, that is the worst possible time to get in. Usually, the big, quick moves they hoped for don't happen and the options expire worthless.  These investors often compound their mistakes and buy weak or uncertain companies.

Join us and we'll show you how to be on the winning side of trades that others lose.  We’ll teach you to be flexible but methodological.  We scan hundreds of stocks and even more options every day to find our Members the best opportunities. We use proven money-making techniques that most investors never heard of.  Join us and, each day, you'll receive our daily level watches and market outlook and our Basic and Premium Members will have access to our live chat rooms, where you'll get our fresh trade ideas as the market dynamically changes and you can even ask your own questions LIVE, while the markets are open.

 

At PSW we do not send out an Email and leave you on your own, in our daily Member Chat you will find out our best trade ideas on:

  • What options to buy or sell.
  • When to make your moves.
  • Why we are recommending them.

 

Here's 3 ways we can show you how to make money in ANY market conditions: .

 

PROFITS FROM SURGING STOCKS

For example, Amazon AMZN surged more than +50% in less than a couple month's time.

But prior to that, it had been stuck in a trading range for 7 long months.

Finally, as their earnings report date drew near, the buzz began to grow about AMZN. It was believed that they might report some pretty impressive numbers. Within the weeks leading up to their earnings, the stock was trading at roughly $95 per share.

You could have bought 100 shares and plunked down $9,500 – hoping that AMZN would deliver (or get crushed if it didn’t). 

Ride a company's earnings bonanza at a fraction of the risk! 
To gain $2,700 in about a month, which would you rather put up. $9,500? Or $1,200?

Instead, let’s say you bought an in-the-money $90 November call option for only $1,200 right before the earnings announcement.

Then on Oct. 22, 2009 AMZN was ignited by a spectacular earnings report. The stock skyrocketed over +26% in just one day. And by Nov 20th (the option’s expiration date), it was up nearly +39%. 

A $90 call at expiration would have been worth $3,966 for a gain of more than $2,700. That’s over a +225% gain on just $1,200 invested.

Here's the best part:

If AMZN had negatively surprised and went down -39%, you would have stood to lose $3,705 on the stock. In fact, if it went down -50%, you’d be down $4,750.

But when buying an option, even if your stock went to zero, you could never lose more than what you invested, which in this example is only $1,200 – way less than the $9,500 you would have poured into the stock itself.

 

PROFITS FROM FALLING STOCKS

We can also make a lot of money when the market goes down.

Buying puts is a great way to profit as the market falls without having to short a stock. And just like a call, your risk is limited to what you put in.

As of mid February, 2010, MasterCard was an "expensive" stock traded around $225 a share. But it was even more expensive in early February, when it was almost up to $270.

MA was coming off its highs as their Feb. 4th earnings date was approaching. Just days before announcing, it was nervously trading at $250.

Profit from a stock's price drop without the risk of going short! 
Why invest $25,000 to short 100 shares of MA when you could have used only $2,200 for put options?

You could have shorted 100 shares of MA for nearly $25,000.

However, at the same time, a $250 March put option would have cost only around $2,200. (Once again, you make money buying puts if the stock goes down.)

After a disappointing miss on earnings and a bleaker outlook, MA dropped -$25.47 the very next day, before trading as low as $217.15 shortly thereafter. That’s more than a -$30 drop, $3,000 in just a few days.

But look at how you'd profit:

For every one dollar decline in the stock, that’s a $100 increase in your option for each dollar below your strike price at expiration. As the stock keeps falling, your option will continue to increase in value.

And a trade like this can be done at a fraction of what it would have cost you to trade the actual stock.

 

COLLECTING AUTOMATIC PREMIUMS

Now consider another strategy that we use to profit every which way.

On December 3, 2008, AAPL was selling at approximately $93 and let's say you believed that it would go up – or at least not go down much below $70.

At the time, with the bear market raging on, maybe you weren't convinced that AAPL would go straight up and didn't want to commit $9,300 to buy 100 shares. But you also didn’t want to miss an opportunity to make money because you had a strong feeling about its general range. And you felt that even if AAPL went down to $70, it would be great to own at that price. 

Let's say you wrote the April, $70 put at $8.35 per share, collecting $835.

Make money even when
you’re wrong! 

Apple went down nearly -16%, yet the option remained profitable virtually every day after it was written.

If AAPL stayed above $70 at expiration (the third Friday of April), you'd have pocketed the full $835. And potentially you could have owned shares if it had dipped to $70.

Yet, even if it sunk below $70 to as low as $61.65, you still wouldn’t have lost a cent. Only if it went below $61.65, would you actually start to lose on the trade.  

Here's what really happened:

Between the day your put was written, 12/3/2008, and its 4/17/2009 expiration date, the price of AAPL got as low as $78.20 and as high as $124.25.

Since Apple, at expiration, stayed above $70, you would have kept the full $8.35 per share, less commissions and fees for a gain of +98.7 on the trade. And you would have done it in less than 5 months, with less money and less risk than if you had invested $9,300 in the actual stock.

The best news is that you can do this again and again in the months to come.

 

Try our service, get our latest picks and learn all the ways YOU can enhance your trading performace using our common-sense hedging strategies to help YOU trade like a Professional!

What Our Subscribers Have To Say:

This is why I love this site. Blunt truth. While all these financial thieves don their $150 Armani ties and tell you to stay calm, much like the day after 9/11, you tell people to save themselves. Your site is quite possibly one of the best blogs around. Thanks for keeping it "real" and educating many of us lemmings. Keep up the good work. 
-Lloyd P.

I have paid many dollars for education, coaching and stupidity! I have also followed dozens of advisories, coaches and newsletters. This is by far the most educational site with the best strategy for this type of whipsaw market! I've already started recommending you to my trading buddies. You better get this site ready for some major traffic as people catch on to what you're doing! 
-Mike N.

Praising PSW for enlightenment is a bit  akin to praising the Pope for being  holy.  I've been reading PSW for about two months now and have learned more about investing technique and the world in general than I've learned from the books and seminars I've paid for. Thanks for the enlightenment, the education, the guidance and the truth,which is not a commodity these days, but a virtue in short supply
-Andy M.

Profit From Experience

What You Get: 

Stock Chart ComputerTrade Ideas:  In addition to discussing market moving events, we regularly discuss trade set-ups that might work in conjunction with the news. *

To watch Phil in action, click here to view Phil's March 6th, 2009 appearance on LiveStock, where he called the market bottom on the nose and gave viewers 13 HUGE winning trades in 3 hours.  Note how Phil calmly talks viewers through a crash, explains the crash and explains why the markets will turn up the next week.  This is what Phil does in chat at PSW every day - we discuss the market and the news that's affecting it and Phil, David, Optrader and our featured members put up trade ideas and discuss new entries and trade adjustments along the way.

In the first 10 minutes of the above broadcast, Phil explains the "Buy/Write Strategy" and puts out a trade idea on FAS that made 212% in 3 weeks - taking a $80 investment to $250 using one of our key option strategies that ANYONE can follow.  FAS is now (9/5) $71.55, up from $2.41(+2,800%) where Phil strongly recommended it on a day the markets were collapsing and everyone else was panicking.

For full details on our 13 Bullish Plays on March 6th that made Members a 469% return in 6 months* - CLICK HERE

Compare what Phil was saying live on March 6th (buying with the Dow at 6,500) at the exact same time (2:30) as Jim Cramer was calling 5,320 as a possible bottom - 20% lower - adding to the panic for the average viewer.  Phil was specifically saying to buy DIS which Cramer predicts would go lower, virtually at the same time on two different shows!  Later that night, even after having a chance to view Phil's show,Cramer was still VERY negative, with the OPPOSITE advice Phil gave (you can subscribe to Cramer here - tell him Phil sent you!).  Fast money also told viewers that same Friday that "there’s too much risk and too little reward to get involved."  That night, even though they could have taken some time to listen to Phil, the Fast Money team said:

Here's an example of Phil Davis going head to head with the "finest minds on Wall Street" on a day the market was crashing and the chips were down.  Phil did not just make great picks, he spent the better part of 3 hours explaining the economic and political climate and the reason behind his decisions to buy and he laid out strategies for what to do, even if he was wrong (he wasn't), if the market had continued to fall.  You could have listened to CNBC's All-Star "Experts" and gotten out with huge losses and missed the rally that followed or you could have listened to Phil, who was EMPHATIC that this was the buying opportunity of a lifetime.  Phil said we would bottom out the next session on Monday, March 9th, 2009 and here is the Daily Dow Chart - enough said...

Television is a powerful and emotional medium, it is very difficult to go against the will of ALL these "experts" when they get on TV and all tell you to sell (or buy) and then their TV station backs them up with bearish news and bearish guests - it's a natural bias that develops, they aren't going to make their own paid personalities look foolish by contradicting them with facts and dissenting opinions.  

This is WHY you subscribe to a newsletter, not for a trade idea here or there but for an unbiased investing viewpoint THAT CAN MAKE YOU MONEY.  To work with a person who knows how to spot opportunities when the crowd is panicking and helps steer investors safely through the madness.  Philstockworld is the fastest-growing Stock Market Newsletter for very good reasons - now that you've gotten this far - you can see why.

Profit From Experience

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A sample of the educational trade ideas our members receive in our famous Member's Virtual Portfolios:

AAPL $89, 1/11 price: $90.58, 1/30 $93.  Oh I love these guys!  Well, we made a very easy $15 with the last play, selling the conservative $85s ahead of earnings for $15.35 so I’ll assume everyone is called away and we’re starting from scratch.  March $90s are $12.85 so still not bad at net $80.15/85.08 and I like the new revenue stream with SIRI.  It’s still AAPL and you still need a strong stomach to ride it but us believers have had the best time ever buying out callers on the dips and selling them back again on the runs up.  Leaps are still too pricey unfrortunately but you can sell naked March $85 puts for $3.20 but maybe wait and see if you get $5 on a dip.

MSFT for $18.65, 1/11 price: $20.52, 1/30 $17.59.  LOL, I’m just looking at what I wrote pre-earnings: "This company is a disaster.  I hate the company, I detest the management and their products are aging and falling apart and competition is nipping at their heels."  Man was that on the money!  So was my other comment: "So why are they on the list?  Well they are a money printing machine that will keep making money through sheer inertia even with a chimpanzee at the helm (and Steve Ballmer has proven that). At this price, they are accidental good dividend payers (2.9%) so my plan here is to always hedge them low and be happy to get cashed out if they run up."  Still I was not cautious enough as we took the $20s, now $2.60 for the set and I guess we should sell the March $18s this time for $2.29 which is net $15.30/16.65, that’s the spike low of earnings.

TIE at $7.28, 1/11 price: $9.39, 1/30 $7.39.  Last time I said wait  and even if you missed our entry last week $7.39 is still a great entry.  Selling March $7.50s for $1.78 nets $5.61/6.56 and that’s just fine

UYG at $4.34, 1/11 price: $5.86, 1/30 $3.40.  As I said last time: "This is XLFs hyperactive little brother."  UYG pays a 7% dividend too!  Of course, many banks may suspend dividends this year but we’re talking about long-term holds, not trades and with banking getting back to a dull business, dividends should also make a comeback over time.  We last sold the $5s, now $1.80 and that can be rolled to March $5s for $2.16 if you are a believer.  As a new entry, there’s nothing wrong with selling the March $3s for $1.35 to bring you down to net $2.05/2.53, which is better than you would do naked selling the puts alone and a 50% gain if called away

Profit From Experience

Please read this statement of our terms and conditions. It's written in plain English, and by subscribing you consent to its contents. Disclaimer

*Please note that we often discuss options trades.  Not all trades are taken by all people and not all traders choose to (or have the clearance to) sell options against other positions or have the capital available to add money to trades - all this impacts your individual ability to profit and options trading is an inherantly risky practice.  You must consult a professional financial advisor before making any trade (see disclaimer) and decide what is best for your own virtual portfolio.  This site is meant to help educate you and we recommend setting up a Paper Trading Account with ThinkorSwim/TD AmeriTrade or another on-line broker so you can try some of these strategies on-line without risking cash.