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I'm Jim Fink. I trade the market for extra cash.
If I tell you exactly what I'm buying and selling, you can copy me and make the exact same profits I do.
Why not? All it takes is 9 minutes a week. And you don't have to invest a dime upfront.
Hundreds of men and women who had never traded this way in their lives are already doing it. Some have already accumulated a lot more than $80,000. Check out my 9-minute-a-week system here.
| | | 10/29/2014 By Jim Fink 
Nine minutes.
That's about how long it takes the average person to scan the business headlines.
And if you take advantage of the simple strategy I'm about to show you, it's roughly how long you'll need to spend trading the market every week.
What can you expect in return for this tiny commitment?
How does an extra $226 a day sound? $226.22 to be exact.
That's an additional $82,569 a year—and you don't have to invest a dime up front.
I know that sounds like a ridiculous promise to make, but hundreds of men and women who have never traded this way in their lives are doing it right now. Some are already making over $100,000 a year.
Why Boring Is Beautiful
That $82,569 figure is no hypothetical number—it's exactly what you would have made each year if you'd followed my recommendations since I launched my Options for Income service back in April 2011.
Before we go any further, let's get one thing straight: if you associate the word "options" with "risk," you're not alone. Many investors do.
But the way I trade options is nothing like the roll-the-dice gambling you're probably imagining.
In fact, it's the exact opposite—so boring that some of my clients buy penny stocks on the side, just to keep their pulse above 60.
But you know what? After 1,248 days of watching the steady drip … drip … drip of $226 a day into our account, I'm starting to think boring is beautiful.
Let's look at the numbers: - We've made 273 trades so far, and we've made money on 231 of them, for a "win rate" of 84.6%. That's unheard of for investors—in stocks, options or anything else;
- Between October 18, 2012, and August 2, 2013, we made 55 profitable trades in a row. That's right: We didn't have a single losing trade in almost a year;
- My readers saw a 110.98% total return between the day we launched Options for Income in April 2011 and September 19, 2014. That's almost double the S&P 500's gain of 61.25%.
To be clear, we don't trade every day, so you don't actually get paid daily. We trade about once a week, making gains like $2,300 … $4,550 … and $1,150.
But it comes out to $226 a day.
Options Trading Buffett-Style
I'm not the only fan of trading options this way. Warren Buffett is, too.
Yes, you read that right. Warren Buffett—the man who made super-safe "value investing" a household word—trades options! And no small amount, either. Over the last decade, Buffett has racked up a whopping $4.9 billion by trading options!
He's done it by relying on the same no-nonsense, conservative approach that has made him a legend in the stock market.
So what's his secret?
Like me, Buffett's an options seller, not a buyer.
Studies show that options buyers lose money on 7 out of every 10 trades they make. That's because they're mostly speculators. They place high-risk trades hoping for a big payout, and that's why they strike out 70% of the time.
But when you sell options, the odds of winning tilt in your favor. Because every time the buyers strike out, you keep the money. That makes selling options about the closest you can get to almost never losing money when investing.
Here's how it works:
Most of the options I sell are puts. When you sell a put option, you're giving someone else the right to sell a stock to you at a particular price, which is called the strike price.
Say you're selling a put option on Microsoft, and the stock is sitting at around $45. A buyer might pay you $1 per share ($100 per options contract) for the right to sell, or "put," the stock to you at $40 a share anytime in the next 6 months.
So you sell 10 contracts, and the buyer deposits $1,000 in your account. That's usually the end of the story. Chances are the put option you sold is going to expire worthless because Microsoft won't dip below $40. You'll be $1,000 richer without investing a dime.
In the last few years, I've recommended that subscribers sell puts on Crown Holdings, Molson Coors Brewing, Berkshire Hathaway, Apple and Casey's General Stores.
If you'd followed those 5 recommendations, you would have pulled in a total profit of $33,500—just by selling 10 contracts on those 5 stocks. Because the stocks never dropped below the strike price, you kept the entire upfront payment and didn't pay anyone anything.
I have to tell you something here: Even though collecting income this way is generally very safe, it still makes some people a little nervous.
That's because if the stock price does happen to fall below your option "strike" price—$40 in this Microsoft example—you might have to buy the stock at that price. That's why I only sell puts on stocks I'd like to own anyway … and at a price I'd like to own them at.
So if I have to buy MSFT at $40—a nice 11% markdown on today's price—I'm fine with that. There's no better way to pick up good stocks at a discount.
Start Collecting Your Instant Cash Now
I've just released a new special report that gives you everything you need to start collecting your $226 a day with a minimum time commitment—yes, just 9 minutes a week!—thanks to my proven approach to options trading.
It's called "5 Great Ways to Cash in on Options," and it's yours free with a no-obligation 90-day trial to Options for Income. This incredible deal gives you everything I have to offer for a full three months, including fresh trade recommendations every Thursday, my personal responses to all your questions and much, much more.
Don't miss this one-of-a-kind opportunity. Click here to grab your special report and start your risk-free trial now.
Editor's note: Here's what readers are saying about Options for Income:
"[Just made] my largest OFI gain on a single trade—over $5,000 … I look forward to more great advice this week."
—Glenn
"I have no doubt that your strategy works. I have been a member since August 2013, and my batting average experience using your trade instructions has so far been .900 or better, and I am grateful for that."
—Shane D., January 2014
"I ended the year with a cash flow well over $100,000 … which is just plain unbelievable."
—Roger
Now you can join this happy group with no risk and no obligation whatsoever. Reserve your spot now by clicking here. | | |
I'm making $226 a day! Every day. For the past 1,248 days! And it took me on average one minute and 17 seconds of my time every day. My profits are a mind-boggling, whopping $282,320. I can show you how to rake in $226 a day, too. You can even use what I know to put a quick $1,110 in your bank account today. Making money investing this way in the market is the easiest thing I ever did. You simply have to… Read more.
| | | 10/29/2014 By Chad Fraser 
Transportation stocks continue to race ahead of the overall market.
The performance of the iShares Transportation Average ETF (NYSE: IYT), a reasonable proxy for the industry, tells the tale. Year-to-date, the ETF has zoomed to a 19.1% gain—miles ahead of the Dow Jones Industrials (up 2.6%) and the S&P 500 (up 7.5%).
That's because many transportation stocks—including railways, airlines and courier companies—are seeing higher volumes and hiking their rates, resulting in significantly improved earnings.
United Parcel Service (NYSE: UPS), the world's largest package-delivery firm, is the latest major player to announce a rate hike: on October 20, the company said that as of December 29, its customers will have to shell out an average of 4.9% more to ship goods domestically and between the U.S., Canada and Puerto Rico.
UPS's move came on the heels of chief competitor FedEx's (NYSE: FDX) September decision to also bring in a 4.9% hike at its ground- and air-freight divisions.
In addition, both companies are shifting to dimensional weight pricing for their ground services, which means they will charge by package size as well as weight. That will add to their revenue and save space on trucks, because it will discourage customers from sending small, lightweight items in big boxes.
Meanwhile, higher rates and volumes helped Union Pacific (NYSE: UNP), North America's largest railroad, report strong quarterly results last week. More on that below.
Road Ahead Looks Smooth
Recent economic data suggests that we should expect more goods to hit the nation's roads, skies and railways in the coming months.
For one, the Federal Reserve forecasts continued moderate growth in the economy, with U.S. GDP expected to grow 2.6% to 3.0% next year, up from a 2.0% to 2.2% expansion in 2014. Unemployment also continues to trend lower, falling from 6.6% in January to a six-year low of 5.9% in September.
The improving job picture and falling gasoline prices have strengthened U.S. consumer confidence, with the Conference Board's indicator hitting a seven-year high of 94.5 in October, up from 89 in September and well ahead of the expected level of 87.
Shipping companies also stand to gain from lower fuel prices. For example, fuel was FedEx's third-biggest operating cost in its 2014 fiscal year (ended May 31), behind salaries and employee benefits and purchased transportation.
Here's a brief look at two major transportation stocks we've recommended on investingdaily.com and in our Personal Finance advisory. Both are doing a good job of tapping into rising demand for shipping while keeping a lid on costs.
FedEx: Still on a Roll
On March 18, we spotlighted FedEx on investingdaily.com as a solid pick after the S&P 500 got off to a sluggish start to the year.
At the time, our research team forecast that the stock could climb above $155 in 2014, and it has easily exceeded that prediction: since the article was published, FedEx has gained 20%, from $137.59 to its current level of around $165.00.
The company's shipping business has three main segments: FedEx Express, which accounted for 58.9% of its fiscal 2014 revenue, offers domestic and worldwide delivery within one to three business days; FedEx Ground (25.2% of revenue) delivers packages throughout the U.S. and Canada; and FedEx Freight (12.5%) ships less-than-truckload (LTL) deliveries.
FedEx reported its latest quarterly results on September 17.
In its fiscal 2015 first quarter, which ended August 31, the company posted net income of $606 million, up 23.9% from a year ago. Per-share earnings jumped 37.3%, to $2.10, on a reduced share count resulting from the company's buybacks (including 5.3 million in the latest quarter).
Revenue rose 6.0%, to $11.68 billion, topping the consensus forecast of $11.48 billion. Profits were also well ahead of the $1.96 a share the Street was looking for.
The company saw improved revenue at all of its divisions, primarily due to more domestic shipments. Higher rates and continued cost reductions, particularly at the Express division, also added to its earnings.
Cashing in on Online Shopping
E-commerce continues to be a big growth area for FedEx. During the approaching holiday season, for example, the National Retail Federation forecasts an 8% to 11% increase in online sales over last year. That roughly aligns with FedEx's own prediction that it will ship a record 290 million packages between Thanksgiving and Christmas Eve, up 8.8% from the same period in 2013.
The company currently forecasts earnings of $8.50 to $9.00 a share for all of fiscal 2015, up from $6.75 last year. Analysts expect profits at the top of that range, at $8.99 a share, rising to $10.85 in fiscal 2016. The stock trades at 18.7 times the fiscal 2015 projection.
Union Pacific: Leaving the Station
Another transportation stalwart that's posted strong results lately is Union Pacific (NYSE: UNP), a holding in Personal Finance's Growth Portfolio.
The company is North America's largest railroad, with a track network spanning 32,000 miles across 23 states.
Union Pacific's revenue is well diversified across six different categories of freight. Intermodal represented 19.5% of its revenue in 2013, followed by coal (19.2%), industrial products (18.5%), chemicals, including oil from U.S. shale formations (16.9%), agricultural (15.8%) and automotive (10.0%).
The company's third quarter earnings rose 19.0% from a year ago, to $1.37 billion, while EPS gained 23.5%, to $1.53, on fewer shares outstanding due to the company's buybacks. That beat the Street's forecast by a penny.
Revenue gained 10.9%, to $6.18 billion, also topping the consensus estimate of $6.09 billion. Union Pacific saw higher revenues across all its segments, with the greatest increases in industrial and agricultural products (both up 19%) and intermodal (up 15%). Chemical revenue gained 6%, while automotive and coal saw increases of 3% and 2%, respectively.
"We are optimistic about the remainder of the year," said CEO Jack Koraleski. "Assuming the weather and economy co-operate, we are well positioned to finish up the year with record results."
The company continues to take advantage of rising demand for intermodal service, which involves containers that can be loaded onto ships, trucks and trains. In the first half of the year, Union Pacific added intermodal capacity between Portland and Chicago and northern California and Chicago.
Key Ratio Sets Union Pacific Apart
An important measure of a railroad's health is its operating ratio, which measures operating costs against revenue (the lower the ratio, the better).
In the third quarter, Union Pacific once again showed that it's among the most efficient railroads in the U.S., posting a best-ever quarterly operating ratio of 62.3%, down 2.5 points from a year ago and 1.2 points from the record it set in the second quarter of 2014.
The stock pays dividends at a rate of $2.00 annually (1.7% yield) and trades at 17.9 times the company's forecast 2015 earnings. That puts it roughly in the middle of the railway pack: Canadian National Railway (NYSE: CNR), for example, sports a multiple of 18.6, while CSX Corp. (NYSE: CSX) stands at 16.3. | | |
Option buyers lose money on 7 of every 10 trades. They place high-risk trades, hoping for a big payout. But they lose – a LOT! But I don't buy options. Instead, I flip them on their head and do this with them. When I do, I make money 82% of the time. I turned $50,000 into $5 million trading options this way. To know my little option secret, you must click here.
| | | 10/28/2014 By Robert Rapier 
One of the most anticipated master limited partnership (MLP) offerings of the year debuts this week. Shell Pipeline Company (SPLC), a midstream subsidiary of Royal Dutch Shell (NYSE: RDS-A) recently formed Shell Midstream Partners(which will trade as SHLX), and units are expected to price late on Oct. 28 with trading kicking off the next morning. Shell Midstream Partners intends to grow by acquiring more of Shell's extensive portfolio of midstream assets, investing in expansion projects and potentially pursuing strategic acquisitions of assets from third parties. Most future growth will probably come from further dropdowns of Shell's midstream assets. The impending IPO was covered in some detail in the Aug. 11 issue of MLP Profits ("Shell Sells Pipelines by the Seashore.") With this offering, Shell becomes the first major integrated oil and gas company to launch an MLP. Initial assets of Shell Midstream Partners will include interests in two refined products pipelines and two crude oil pipelines: -
A 49% interest in Bengal Pipeline Company, which owns a refined products pipeline that connects four refineries in Louisiana -
A 1.612% ownership interest in Colonial Pipeline Company, which runs a major finished product line connecting the Gulf Coast to the East Coast -
A 43% interest in Zydeco Pipeline Company, which will own the Houston-to-Houma crude oil pipeline system -
A 28.6% interest in Mars Oil Pipeline Company, which owns the Mars crude oil pipeline The Bengal Pipeline is operated by SPLC and connects four refineries in Louisiana with the Plantation and Colonial pipelines, providing market outlets to the East Coast. Colonial Pipeline Company (Colonial) operates the largest refined products pipeline in the United States, traversing 11 states across the southeast and eastern seaboard. Colonial transports more than 100 million gallons per day of refined products, or approximately 50% of refined petroleum products consumed in the East Coast region of the United States, through its 5,500-mile system. Zydeco Pipeline Company (Zydeco) is currently owned by SPLC. Zydeco will own the Houston-to-Houma Louisiana crude oil pipeline system (Ho-Ho). The Mars Oil Pipeline Company (Mars) operates a major crude oil pipeline in the offshore Gulf of Mexico, originating approximately 130 miles offshore and terminating in salt dome caverns in Clovelly, Louisiana. The IPO aims to raise approximately $750 million with 37.5 million shares priced between $19 and $21, which would provide an annualized yield of 3.25% at the midpoint. The most recent market talk had shares pricing at $22 or higher. While that would push prospective yield below 3%, Shell has a very large portfolio of midstream assets that can drive the growth of the partnership for many years to come. Demand for this IPO is expected to be strong, so expect an opening well above the indicated price range. This will likely be a good long-term portfolio holding for MLP investors, but it is much more appealing for the potential capital appreciation than for investors seeking income. This article originally appeared in the MLP Investing Insider column. Never miss an issue. Sign up to receive MLP Investing Insider by email. | | |
Warren Buffett made $4.9 billion in cash by making this one small change to his investment strategy. It's the closest thing you'll ever get to almost NEVER losing money while investing. I've made $226 every day for the past 1,248 days. Is it time for a change and more money in your pocket? Details here.
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