
I just want to say thanks, for years now I have been interested in trading and dabbled here and there with some success. I realized that time is the most important thing you need. read more Steve Irving - Sydney, NSW, Australia
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Market Reports > Power Writer |  |
Power Writer | Last 3 trades | +14.40 % in 59 days | +7.73 % in 25 days | +4.14 % in 26 days |
| | Mastering Wealth is pleased to present the Power Writer market report. The Power Writer is a high risk service which gives you the ability to ramp up your returns by using the leverage that is available to each investor. The Power Writer, through using naked puts, is a powerful way of generating income whether the stock goes up, down or sideways. | What Stock Options am I investing in? Mastering Wealth scours the market daily to find the best available trades for the Power Writer market report. Companies showing stable fundamentals and low to medium volatility technicals are the ideal play here. Time and time again the Power Writer has proven to be a great regular monthly premium earner that will strongly build your portfolio. | Market Report Summary | | MW Risk | High | MW Trade Duration | Short to long-term | | MW Recommended Investment | AU$10,000 up to AU$50,000 into this service | MW No. of Trades | 3-4 trades per month | | MW Recommended Allocation per trade | Max 10% allocation per trade | MW Trade Alert | Sent within 10 minutes of recommendation | | MW Auto Trade | Choose to allow your broker to automatically execute trade alerts | MW Commentary | Sent upon open and close of position |
| So tell me how does this service work? The Mastering Wealth Power Writer uses Naked Puts, which involves writing out-of-the-money (OTM) put options in order to receive a premium. For this, the broker will take an initial margin to cover a portion of the risk. When the put option expires worthless, the margin held will be returned and we get to keep the premium as income. Our probability for success is very high as we make the maximum profit if the stock trades up, sideways, and it can even down (as long as it stays above the strike price by expiry) | How do you recommend I allocate my funds?The Power Writer targets consistent returns of 10% to 25% per position. Even though our success rate is very high, we still need to have strategies in place to cover all potential outcomes. Therefore we recommend that you only expose a maximum of 10% of your account into any one position. The minimum amount we recommend that you invest into this service is AU$10,000, and the maximum we recommend that you invest into this service is AU$50,000. Now generally we will be running three to four positions at any one time, leaving the balance sitting in cash of which is to minimize the possibility of getting a margin call from the broker. | What are the Power Writer Risks? The Power Writer uses Naked Puts as its strategy, where the maximum risk is in theory limited, as a stock price can only fall to zero. This is in effect the same risk that you have with covered calls. However as the initial margin required for a position only covers a portion of our maximum risk, we could be exposed to lose more than we have received and/or initially invested. On occasions the broker may increase the margin held against a short position. This may be due to concern over the stock, or there may have been a drop in the stock price, hence getting close to the strike price. We can still have a 100% successful position, and get a margin call. | | At Mastering Wealth we show every profitable and negative position, for full service results click here |
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