The Key to a Successful Options Trade

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First, I’d like to thank once again everyone who joined my InvestorPlace colleague Eric Fry and I for Tuesday’s Escape Velocity Event. Thousands tuned in to find out about our groundbreaking new strategy that could hand investors big gains without taking big risks in options trading. (If you missed the event, or would like to watch a replay, click here.)

An electronic display shows the word "Options" next an upward green triangle.

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Throughout the years, my subscribers have asked me to use my proprietary, market-beating system, which has enabled me to beat the market by 3-to-1, to trade options. They thought it would be the perfect tool to help implement even greater gains that I’d been known for.

And achieve them without taking on excessive risk.

I took this as a challenge and crunched trillions of data points and explored the financial markets at a depth I’ve rarely explored before. As it turned out, my subscribers were right.

I also realized that the key to a successful options trade hinges on picking the right stock, based on superior fundamentals. Most investors get caught up in “hunting” for the perfect option at the perfect price. But they fail to consider the most important element to the entire equation: the underlying stock.

The reality is when options are used improperly, that trade is nothing short of gambling. It’s why it’s critical that before we pick the option, we pick the right company that we know has the potential to climb higher because of its strong fundamentals.

When you choose randomly, odds are high that you’ll be left holding the bag after the smart money flees the stock.

To find the right company, I use my proprietary system to scan 5,000 stocks per week and pinpoint those with growing sales and earnings that are sure to move higher over the next year or two. Once I’ve found the right stock, I do a second deep dive to find the safest, most lucrative LEAPS (Long-Term Equity Anticipation Securities) options for maximum gains.

This allows me to leverage the gains from fundamentally superior stocks with explosive potential. Unlike short-term trades, we have at least a year to benefit from the underlying stock’s movement, which also helps limit our risk.

With this approach, folks can reach financial escape velocity.

Now, I know now might seem like a tricky time to achieve financial escape velocity, but the reality is we’ve finally reached October, which is a seasonally strong month for the stock market. So, there couldn’t be a better time to start trading LEAPS on fundamentally superior stocks. I look for high-quality stocks to strengthen in October as we approach the seasonally strong time of year when family and friends gather and celebrate the holidays.

In addition, these stocks should benefit from positive analyst revisions in late September and early October ahead of the third-quarter earnings announcement season. And after that, the fourth-quarter earnings season itself should be stunning, as the seasonally strong time of year in the market ramps up.

These are the kinds of stocks I look for as I build my Power Options LEAPS Portfolio. In fact, the six escape velocity trades in my Power Options Portfolio are all plays on companies that posted strong earnings results in their most-recent quarters.

Every one of these stocks has posted at least double-digit earnings and sales growth. And they all beat Wall Street’s earnings estimates, too.

So, in an environment where the companies that post strong earnings are rewarded, these stocks are well-positioned to meander higher over the longer term. So, it would be foolish not to trade options on stocks with major potential upside ahead. These first six escape velocity plays are just a taste of what’s to come.

If you’re interested, click here to learn more.

Sincerely,

Louis Navellier

P.S. Once you sign up, in addition to receiving my six escape velocity trades, you’ll also have full access to Eric’s three LEAPS trade recommendations in his new report called The Spectacular LEAPS Portfolio: Three New “Escape Velocity” Trades. Get the full details, here.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.


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