The Alpha Hunter: Profiting from Option LEAPS, 1st Edition

Earn triple-digit returns with option LEAPS! “Investing on the new Wall Street requires a strategic gameplan for all types of economic conditions. The information in this book can helpprepare your portfolio for the coming cycles.” —Randy Reid, Senior Vice President, Private Banking & Investment Group, Merrill Lynch “Jason Schwarz has written an investment book that will both inform and entertain. I have rarely come across investment wisdom that is dispensed with a combination of such humor and insight.” —William Hesterly, author of Strategic Management and Competitive Advantage and associate dean, Faculty and Research, David Eccles School of Business, University of Utah “In The Alpha Hunter, Jason Schwarz marries together two veryimportant and complex aspects of investing. Namely, extraction ofnondiversifiable risk returns, or alpha, through utilization of optionsstrategies called LEAPS. He achieves these objectives througha very down-to-earth and sensible approach to investing.” —Scott Rothbort, president and founder, LakeView Asset Management, LLC, andterm professor of finance, Stillman School of Business, Seton Hall University When the price of oil surged to an all-timehigh in summer 2008, optionsstrategist Jason Schwarz was among the fewexperts predicting imminent drops. Then, inMarch 2009, his was the lone voice tellinginvestors to return to financial stocks. Thoseintrepid “alpha hunters” who heeded his callsenjoyed huge returns. Now, Schwarz unveilsthe investment strategy of the future that willguide your efforts to outperform on the newWall Street. The Alpha Hunter provides the economicknowledge perfectly suited to conquer thenew-found volatility of the global enviroment.Schwarz examines the “four winds” of thestock market—online trading, hedge funds,bubbles, and the unintended consequences ofgovernment regulation—and explains how touse them to your benefit. His method beginsand ends with option LEAPS (Long-termEquity Anticipation Securities). Purchaseoption LEAPS headed in the right direction,and returns can reach triple digits. LEAPS allow you to carry a longer positionon the option, which is advantageous in threekey ways. They function as: An alternative to stocks: LEAPS callsenable you to benefit from stock price riseswhile placing less capital at risk than isrequired to purchase stock. A means of diversification: Helping youcapitalize on market overreactions, they getyou out of the market for the next downturnand get you in for the next growth phase. A tool for hedging: With a LEAPS putpurchase you can boldly take risks on wellresearchedtrades. In order to build a solid portfolio, you mustabandon the old buy-and-hold model. TheAlpha Hunter provides you with a methodologybuilt for the times we are living in. Explorehow the latest innovations coming out ofApple, China, and the White House will affectthe investment climate of tomorrow.