YTD Return Rises to 33%!

Our Aggressive portfolio has been on a tear rising another 6% last week bringing its YTD return to 33%. That is a great start to the new year, but the bigger story is our return since inception which has now reached 570%. That is an incredible return in just over three years in what has been one arguably one of the most difficult investing periods in history! We have laddered our option positions to take advantage of different expiration dates that close over the next eight months. That helps reduce some of the market timing risk that can wreak havoc with options trading. Generally speaking, option premiums are relatively cheap so now remains a good time for taking long positions. We have also taken more call spread positions where we buy to open a call with a lower expiration while selling to open a call having a higher strike price and the same expiration. This strategy reduces risk by lowering entry cost and the price required to breakeven. We look for six month positions where we have the opportunity for 150% gains while limiting our entry cost to 7% or less of the current stock price. Having six months until expiration provides enough time for the underlying stock to gain in price and for our option positions to make money. We use our Momentum and Value Stock Screen to find and select the stock and option combinations for investment.

Portfolio Details Available Online At:
http://www.marketbeatingstocks.com