AIM for Millions with Stock Options

The Safe and Scientific Method to Profitable Investing with Long Term Stock Options (LEAPS)

Jeffrey Weber, Brett Hoffstadt, Brett Hoffstadt

• Éditeur: JJJ Investing Services
• Année: 2021
• ISBN:
  9780983730835
• Édition: 1
• Sujet: Business
• Sous-sujet: Investments & Securities

As a young auditor in the US Army in the 1980's, Jeff Weber discovered Robert Lichello and his Automated Investment Management (AIM) method. Thanks to AIM, Jeff found a reliable way to earn profits automatically and safely from the inevitable market swings that typically bring stress and uncertainty to other investors.

With the creation of Long Term Equity Anticipation Securities (LEAPS) in 1990, a unique opportunity to profit even more from AIM was introduced. With LEAPS, investors have the dual benefits of greater leverage (one contract contains 100 options) plus greater profits due to the larger volatility that comes from options. LEAPS also preserve the low-risk philosophy of AIM because they can have a three year period, thus you can safely invest in a company LEAPS for one year or more.

With ten of the "boring" Dogs of the Dow stocks, a portfolio that used AIM would have increased an impressive 70% growth from January 2014 to May 2019. Investing in the LEAPS of those same ten companies, however, would have increased the portfolio 485% over the same timeframe using the AIM method.

Jeff Weber has been teaching others about AIM with LEAPS since the 1990's as he has continued to refine, expand, and improve it himself. In this, his third investing book, readers receive step-by-step instructions on how to earn profits systematically with AIM through formulas, calculations, and actual screenshots of online brokerage website steps. While any active investor can benefit from this method, special attention is given to FAANG investors - those who want to profit from the high tech revolution. Examples with a FAANG portfolio are featured in this book.

If you want to benefit from the greater leverage and volatility of stock options, yet want to avoid risk, uncertainty, and stress that typically comes from options trading, AIM for Millions with Stock Options will give you a proven, automatic process that has made methodical investors happy and wealthy for nearly 50 years, through up and down markets.

NOTE TO READERS: This book is available as both a paperback and ebook in order to reach the largest potential audience, however the Author and Editor strongly recommend the full-size and full color paperback version for greater readability and value. The spreadsheets, calculations, and online brokerage screenshots are much easier to view on the 8.5"x11" pages. Taking notes in the margins and using the paperback as a quick reference next to your computer are additional benefits.

CHAPTER 1 - Stock Options 101

Businesses issue shares of stock to raise capital for their businesses.  Investors buy the shares of stock.  Then investors trade the stocks on Stock Exchanges. This trading causes the stock prices to go up and down.

Many stocks also have options.  Options give the buyer the right but not the obligation to buy shares of the stock at a set Strike Price.  Options are more volatile than stocks and thus their prices will go up and down faster than the corresponding stock price. But when used systematically and safely – as this book will explain for you – they can be just as safe as the stock they represent. Plus they are much cheaper than the stock price so you can control many more shares.  The volatility and increased number of LEAPS make them perfect for investors who want to maximize their investing dollars and profits.

When Robert Lichello introduced the AIM method to the world in 1977 with How to Make $1,000,000 in the Stock Market Automatically, he used his system with stocks. I have expanded and perfected his strategy with options - specifically, long-term options or LEAPS (Long-Term Equity Anticipation Securities).

LEAPS didn’t exist when Lichello first published his book so we can’t fault him for not seeing this potential! LEAPS began in 1990. Understanding and harnessing the power of AIM plus LEAPS together will change your financial future forever.

Options can expire in one month or up to three years depending on their expiration date.  We will only use long-term options (LEAPS) which expire more than two years in the future when we first buy them. For instance, the January 2021 LEAPS roll out in September, October, and November 2018. You can trade with LEAPS without ever risking that they will expire.

One of the biggest reasons investors stay away from options is that they are afraid they will be caught holding them when they expire. With long term options and my method that is never a risk. In December every year (still more than a year before their expiration) we roll over our LEAPS from one year to the next. Now we have another 2+ years of reliable and automatic trading available to us.

How to roll over LEAPS from one year to the next is covered in my book Here Are the Customers’ Yachts. Many of my clients prefer just to schedule a time with me in the fall and I walk them through the process with their particular portfolio.  This is also a good time to re-assess the portfolio, rebalance it (to obtain a 50% cash ratio for each LEAPS) and sometimes pick other companies when we sell one set of LEAPS. Don’t worry if this is too much to understand at this point. I will cover more about all of this in the pages ahead.

The point is that options are also investing in the companies you want to invest in but you have more leverage and more volatility. For people who want their money to work smarter and harder for them and who have a proven strategy to always buy low and sell high, it is actually foolish NOT to be using options. Long term options or LEAPS are the best of all worlds for stock market investments.

With the AIM method and long-term options, it is fine just to check on your portfolio once a month without worry. But the best practice is to set up your buys and sells ahead of time so that they will happen automatically whenever your target buy or sell prices are reached. That is what the “Automatic” in the AIM method does for you.

You will learn how to do this as just one more reason why AIM with LEAPS is the best guaranteed way to profit from the stock market - year after year for a lifetime. 

CHAPTER 2 - Why AIM + LEAPS + FAANGS Is The Magic Combination

I am going to show you an investing method that is very safe and makes high profits. My second book, Here Are the Customers’ Yachts, concentrated on lower-priced options. They are inexpensive so smaller investors can afford them. This book is geared to wealthier investors so I will concentrate on more expensive LEAPS. You will see how well they have worked over both a short period and a long-term horizon.

In order to make the high profits consistently year over year we need to use two things: LEAPS & AIM. When you have more money at your disposal to put to work for you, a FAANG type of portfolio will create big profits on these companies.

Only a fraction of all companies in the stock market have a long-term option or LEAPS. This is a good thing if you want to limit your investing risk. A company with LEAPS has to have a significant level of maturity, capitalization, and history. It would be highly unusual and unlikely for it to go completely out of business! The point is that by using LEAPS with AIM you avoiding all the risk associated with penny stocks, startups, and bad stocks. Companies with LEAPS are all highly established, mature, and respected corporations.

As of December 2018, there are just over 900 companies that have LEAPS (911 to be precise). In December 2018 as a Christmas present to my newsletter subscribers I sent them the complete list of all LEAPS that expire in 2021.

If you want to save yourself the time and trouble of compiling this list of over 900 companies with LEAPS, look for my contact information at the end of the book and I will send it to you if you ask.

When you hire me to educate you on how AIM works I will help you select the FAANG and high-priced LEAPS for AIM when you are starting. You will get some ideas of the types...