All this week, Sleuth guest contributor and options expert Steve Sarnoff has been sharing his most potent bank bulging secrets. Each one of them a gem, unearthed from a 30-year career as a top-gun market analyst.

Today, I’m going to reveal the biggest secret of them all. And perhaps the one and only reason you should start trading options right now – if you like making a lot of money, fast! It’s a simple strategy that you can use to squeeze penny stock sized gains out of even the biggest blue chips.

It’s why market legend Paul Sarnoff (Steve’s dad) said options are: “The best… Perhaps on the only way to get rich very quickly.”

I’m talking about the secret of “Super-Leverage.”

In a nutshell, “Super-Leverage” allows you to turn a small upfront investment into a potentially life changing payday.

Let me show you how…

When you buy an options contract you are buying the right (not the obligation) to buy 100 underlying shares at a specific price. But, you don’t pay anywhere near what those 100 shares might cost on the open market.

For example:

Steve recommended buying Navistar January $20 calls for $120. At the time, the shares were trading for $16.92.

His charts couldn’t have been more on the money. By the end of that week, the shares were up to $19.59 — a 16% jump.  When it was all over, by the first week of December, the shares topped out at $29.55 a share.  And the options he had recommended were worth $1,150 — an incredible jump of 858%.

You could have bought 10 options for $1,200, and less than two months later, you could have cashed out with $10,300!

That’s the power of “Super-Leverage.”

Can you see why options and “Super-Leverage” can make you rich, quick? Limited risk with unlimited gain is the perfect recipe for explosive profit.

And that’s why, especially now, I urge you to add options to your trading arsenal if you haven’t already. With the market the way it is now, “Super-Leverage” allows you to get in on the action without, gambling your life savings.

Before we wrap up I have one last thing to share. Or rather, options expert Steve Sarnoff does… It’s a FREE ($47 value) report fresh off the press!

It’s called “The Lazy Way To Pick Profitable Options Trades,” and you can download a copy instantly simply by clicking here. (You don’t have to give your e-mail address or anything, just click the link to get the report straight away.)

Cheers,
Jonas Elmerraji

October 16, 2009

Jonas Elmerraji

A big-four public accounting alum, Jonas Elmerraji brings his readers extensive expertise in small-cap stocks and broad market moves. Elmerraji’s interest in the market started with an investing course in elementary school – today he holds a degree in financial economics from UMBC and specializes in blending fundamental and technical analysis. Elmerraji has contributed to Forbes, TheStreet.com, and Investors Business Daily among others. He is managing editor of the Penny Momentum Trader, and a co-editor of Penny Stock Fortunes.

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