The Risk Averse Alert

I recently was asked what this blog is about. I should like to answer this, so my objective here is readily apparent.

The Risk Averse Alert ventures to exploit rare opportunities to multiply initial stakes of $500 into sums upwards of $100,000 using OEX stock index options, and doing this over short periods of time lasting just weeks, at most.

IMPORTANT: I believe it is only on rare occasions options are suitable speculations. The trick is picking your spots. Knowing when to say when is an absolute must. Then (and only then) can options truly be a low-risk, high-reward proposition.

Let me be perfectly upfront. Options are no buy and hold speculative instrument. Options have "time value" partially priced into them, so a buy and hold approach simply is asking for trouble. This is true no matter how certain you are about your forecast. You must be flexible and nimble trading options, period.


In and out, long and short ... all with some big picture in view. Indeed, it is this latter matter I find most critical of all. This is why I am an Elliott Wave Guy ... and proud of it, too.

So, here's all you have to decide. If you believe $500 is not a lot to risk when $100,000 could be yours in a matter of weeks, then why not stick around. Prospective opportunities such as this do not present themselves very often. In fact, the last occasion was in 2002. It was beautiful.

Now, when it comes to making money, priority #1 is not at all specific to the options trade. Rather, it is true of all types of investing. Your first priority should always be capital preservation.

That is why you must insist any options position you initiate immediately appreciate following your purchase. Time is of the essence, because with options, time is priced in dollars and cents.

The Risk Averse Alert is a subsidiary public service supplementing a small, private 401(k) investment advisory I more or less informally have made available to select associates of mine over the past ten years. I am venturing to make this retirement investment advisory more broadly available soon.

Self-directed, defined contribution retirement plans like 401(k)s typically offer participants the ability to borrow from their savings. Therein could lie seed capital for OEX stock index options speculations The Risk Averse Alert will be advocating from time to time.

Again, the secret to making options speculations a low-risk proposition begins with your discipline to put very little investment capital in the line of fire. That is why every speculative venture The Risk Averse Alert recommends begins with a measly stake of $500.

Trade recommendations generally will be few and far between. These most often will venture to profit from very short-term opportunities lasting from one to several days. Speculative gains you can expect in these instances typically will be less than 1000%.

From time to time, however, extraordinary opportunities surface in forecast strong moves in the stock market. Here, The Risk Averse Alert will provide guidance over a period of weeks seeking to multiply an initial $500 stake into a 5-6 figure sum. Again, occasions such as these are fairly rare, but by no means are they extremely so.

I hope this gives you a better idea of what The Risk Averse Alert blog is about.

Presently, I am getting up to speed on RSS feeds and other available facilities for building a loyal following. Rest assured, there is a reason for this.

Do you see the "THINGS I BELIEVE" over to the left? Soon there might be millions of retirement investors who will wish they had known me.

Quite simply, I hope to make my introduction during the coming stock market melt-up to some small fraction of at-risk souls ... before things reverse and turn today's desperation into wider destitution ... and it simply is too late for all too many to retire comfortably as hoped.

I could quite easily bring the best of financial success, I believe, simply helping others thrive through what likely will be extraordinarily difficult times ahead...




By the way... multiplying $500 into 5-6 figures over a period of weeks does not need stocks to crash. A 20% move in rapid fashion (over weeks) generally will bring you $10K-$20K to the positive. Then, depending on the strength of what move follows, that stake can be bumped to (and through) six figures. Yes, I have seen the promised land.

Now, it just so happens stock market declines typically move faster than advances. This stands to reason, and I think you will agree. Fear is a powerful emotion, particularly when it comes to money...

Thus, prolonged plays lasting some short weeks generally begin during forecast stock market declines. That's because the added volatility does wonders to significantly lower the risk of ever losing the pittance one's initial $500 stake should represent (i.e. to your net worth or your better sense of it).

You are strongly advised to preserve your initial investment capital. As one's bank builds during a prolonged market move, it takes no time at all to exclusively play with the house's money. This, indeed, requires discipline. I aim to be an enforcing agent.

I cannot stress enough how relatively rare are opportunities to rapidly turn $500 into 5-6 figures. Most frequently years will pass between one opportunity and the next. Again, this is a supplemental activity to the sort of effective 401(k) investment strategy you can use for the rest of your life. It's simply a low-risk opportunity to rapidly improve your life's wealth in the present moment.

Over the next few years going into, say, 2012-2013, I believe it is quite reasonable to suppose volatility of the past decade might come to a crescendo. There could be several life-changing opportunities to positively manage one's 401(k), and in the process dramatically improve one's financial well-being in the here and now.

So, welcome aboard ... (Now, say hello!)



If you would like free, real-time notification of trade recommendations I make, simply e-mail me and I will put you on the hotlist:

TGolden21 (at) gmail (dot) com
Subject: "Risk Averse Alert Me"




The Risk Averse Stock Index Options Alert advocates a patient, disciplined approach to stock index options trading. The overriding objective is limiting one's financial risk. Minimizing investment capital loss is a priority.

Recommendations target the stock market's path of least resistance. Call and Put options alike are used when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.