Where to put the money
before the market crashes?
 
Gold, Diversify, Cash out?
 
HOW ABOUT SOMETHING BETTER,
something Warren Buffet is doing!
 
 How can you buy puts and 
profit like Warren Buffet?
 
So you think the market will crash, but not sure exactly how to profit from the fall?
 
You are definitely at the right place...
 
This is so incredibly shocking when you research subjects like these:

what to buy during market crash

how to make money in a stock market crash

how to take advantage of stock market crash

what to invest in if market crashes

if the stock market crashes what happens to gold

what goes up when the stock market crashes

best investments during stock market crash

where to put your money before the market crashes

The most typical answer is you will find is this:

“Buy gold, diversify, sell some of your positions and keep more in cash”.

Why don’t they tell you the truth?!

They are not doing those things to “profit”, they are doing those things to reduce risk and exposure.

Reducing your risk and exposure strategies help you preserve your gains and minimize possible loses.

However this is not the strategy they use to profit from the market crash.

What large investors and investments banks do is they make massive bets on market downturn through “shorting stocks” or “buying put options.” There are other more complicated strategies. For example, they could also sell call options to those that think the stock will keep going higher and collect a premium.

We will not discuss the complex strategies here. Complex strategies could be profitable but they are simply not a requirement to produce huge gains. We will just briefly describe the first 2 strategies that anyone can use. You don’t have to be a math wizard!

“Shorting stocks” is exceptionally easy. It’s exactly the opposite of buying a stock. When you buy a stock you have reasons to believe that it will go up. You will be able to collect the profit from selling the stock at a higher price. When you short a stock you have a reason to believe it will decline. You will be able to collect profit when the stock declines in price. 

“Buying put options” is based on the same strategy as shorting stocks. 
The main difference is put options have a certain time limit. The main advantage of options is huge power of leverage that helps you maximize gains. We had situations where drop of 3-4% in the stock price produced 3890% return using put options. It’s the power of leverage of put options that allowed us to maximize that return and leverage it to a gain of 3890%. Options could range in time frame from 1 week to 2 years. So there’s tons of possibilities of how you can profit with a such a powerful instrument. Click here if want to learn more specifics…

We all know a simple fact: Prices Never Go Up exponentially without eventually falling!

But yet the entire 401k system in the country is based on the philosophy that stocks will just keep going up higher and higher!

This is insane!

And then they wonder why millions of people lose their pension funds!


 
Don't be let that happen to you! 
 
Just ask yourself a few basic questions:

Oil is a valuable commodity, right? Does the price of oil endlessly go up? It was at $110 a few years ago then it dropped to $30 and now it’s around $60.

Did your 401k tell you to profit on future oil price declines when it was at $110? No, they were telling you it will keep going higher and you should put more money into energy stocks!

Your house is a valuable asset, right? Does the price of your home endlessly go up? Do you remember 2005-2008? Have you heard of being “upside down in your home”? Yes, that means you owe more on it then what’s it worth! How on earth does that happen? Banks should not borrow you more money on the house then what it’s worth right? Wrong! Just like everyone else banks thought the housing prices will just keep going higher! That’s why you got the loan with 0 downpayment or maybe just 3% down.

So if they can’t even figure that out why should you trust them with your 401k?

Did your 401k tell you to profit from a housing decline? No, they kept saying that your house is your biggest asset and house prices will just keep going up! 

If you are a business owner, the older your business gets the more it’s worth, right? Of course not! The value of your business is based on your current and future sales and profits. Which all depend on demand for your products or services. Higher demand translates to higher sales. But that’s not everything. 

Have you been in a situation where your sales are going great and you keep expanding? Naturally, you raise your fixed and variable costs, new locations, equipment, new personnel, etc. All of a sudden sales drop! It could happen for many reasons: economic slowdown, natural disasters, high level of competition, Amazon cutting into your profits, personal or health reasons, new technological advances etc. 

So what happens if your sales drop, but your expenses stay high. Typically a decline in sales in combination with high overhead costs results in a Bankruptcy. How much is your business worth in a bankruptcy? I hope you can see the point.

The price of your business will go up or down, just like the price of oil, just like the price of your home. 

When you buy a stock - you essentially buy a business. (Or a tiny portion of a business represented by the number of shares you own).

Do you agree it would be insane to assume that the price of the business you are buying will endlessly go up?

However, your 401k assumes just that!

What makes it even crazier is to ignore the fact that in the last 100 years there has been more than 20 stock market crashes, depressions, recessions, slowdowns and downturns in the economy.

What does 401k say about that? Well just keep investing! Even if you buy at the peak and then wait patiently for 10 or maybe 20 years the prices will eventually come back up to the same or higher level.

Really!? You want me and my family to suffer for next 10-20 years for prices to come back up?

I don’t have 10-20 years to waist! Why have my 401k never told me I can profit from a stock market crash just as easily as I can from stock market rise?!

Well I know it’s the question most people never ask.

But You are Not “most people!” That is why you are here looking for the answers!

Here is the shocking truth:

Investment banks that run your 401k funds through a variety of mutual funds make a ton of money when markets crash.

Someone has to lose. Unfortunately, it’s millions of hardworking American Citizens.

The entire system is based to benefit the banks. After all, they are in the business to make money. So it makes perfect sense.

Jim Cramer on CNBC describes it the best:

"As much as I like the tax-favored status of 401(k) plans, I need to tell you something heretical, something almost nobody else will come out and say: Most company 401(k) plans stink," he said.

"They have high management fees and administrative costs that eat into your returns, and worst of all, they typically offer you lousy choices for your investments and not nearly enough control over them," Cramer added. "The 401(k) business is a racket for the managers who get to charge you these fees.

If you have the wherewithal Jim Cramer thinks the best way to maximize your investments is with a diversified portfolio of 5 to 10 individual stocks.

And typically a 401(k) plan doesn't allow for that. "They only let you choose from mutual funds, bond funds and perhaps index funds.” Cramer reminded that the whole premise of Mad Money is predicated on his belief that you can do better than many pros by actively managing your portfolio.

"Sometimes it feels like the whole 401(k) system was set up to benefit the financial services industry, not you," Cramer added.

What exactly should I do to avoid being trapped by the faulty system like millions of others?

Are you looking for the solution?
1
It’s because of the unlimited supply of alternative cryptocurrencies that the value of bitcoin will not rise to infinity.
 
Watch the quick video below...
Bitcoin Jesus says get ready as people rush for the exit...
Bitcoin is obsolete...
Would you like to have high returns of a bitcoin? But less risk?
Real life example of how options work compared to just buying stocks... 
 
How to make the money in a stock market crash?
 
There are a few different ways such as buying gold, shorting stocks, but the most lucrative of all is trading short and long term put options.

Most people naturally don’t think of making profit on a stock price collapse of a particular company or a sector. Intuitively people want to buy something hold it and sell it later for a profit. We are going to do exactly the opposite of that.

Let me explain.

A few years back when facebook was first publicly traded the shares opened around $40. In the following few days they experienced a massive sell off. Lot’s of bad coverage on the company poor abilities to monetize it’s platform and so on.

The price dropped to $17.90 per share within 2 weeks.

I knew Facebook would eventually go up, but was not sure when exactly that would happen and by how much.

The best part about trading options is you have choices of time frame. If you know when a stock will go up or down you could by an option with weekly time limit and earn a much higher return. If you are not sure you could invest in an option with time frame of a month, 3 months, 6 months, etc all the way up to 2 years.

So in this case I was not sure about timing. So I chose a 2 year option.

The sentiment was so negative that call options were priced very inexpensively by the market.

I was able to buy 2 year options with strike price of $45 at just .50 cents each.

I bought 100 contracts for a total investment of $5000.

I won’t get into all the details right now, but simply understand this… 100 option contracts controls 10,000 shares. Without options there is no way I would have been able to buy 10,000 shares for $5000. Also notice an important fact that I did not borrow $5000 on margin. So my risk exposure was also less because it was 100% cash transaction. But it allowed me to control a lot more shares with a lot less investment capital and therefore less risk.

Options could be bought or sold at any time without any penalties. So you are not locked in any type of mandatory holding period like with money market cd’s for example.

This option trade would become profitable if the shares of Facebook were simply to move higher within next few months. They would really gain lots of value and premium increase if they were to move higher faster. And if they would move closer or over the $45 strike.

And we all know what happened. Within just a few months Facebook was trading at $40 then $50 then $60.

By the time the share price reached $62 my options were worth $20 each. And they still had close to a year till the 2 year time frame was to end. (till expiration)

Keep in mind I paid .50 cents for each. So how much of a return was this? 

4000%

My $5000 initial investment was now valued at $200,000.

Warren Buffet had similar percentage returns when he bought millions of Bank Of America call options when it was trading at just $5 and sold them for billions in profit when stock price reached $24.

Very important to notice that: If I simply purchased shares for $18 and waited till shares reached $62, such strategy would have only produced a gain of roughly 250%.

By the end of the 2 year expiration my option contract were worth around $50 as the price of Facebook shares was trading between $90-100. Now I did not keep them till the end of expiration therefore my realized gain was not as much as it could have been. 

By now you are probably wondering what does this example have to do with the market crash or decline?

The answer is simple. You can utilize a strategy exactly the opposite of the one I described to profit from the market crash.

If you believe the markets will decline, drop or crash in the next 2 years you can simply purchase put options with expiration in 2 years.

The mentality behind the reverse strategy is this…

As the market is hitting new records every day and everyone thinks it will just keep climbing higher you are actually able to buy put options (which allow you to profit if a particular stock falls) very inexpensively.

As Warren Buffet would say: “They are undervalued by the market.”

When market directions reverses put options appreciate in price very drastically.

You can use the same time strategy as I did with Facebook and purchase 2 year puts. But if you know the timing of when the market will crash or decline you will be able to gain much greater returns by buying put options with shorter time frame.

The reason it is such a lucrative strategy is because markets fall much faster then they go up and so do individual stocks.

So which stocks do you buy put options on?

Facebook may not be your best candidate for this:).

But even good stocks fall as markets crash.

However, some weaker stocks will fall much faster and lower in comparison to Facebook.

To find out more about how to trade weekly options and longer term options hire me for personal one on one coaching.

I guarantee you that you will save a ton of money and time by hiring me opposed to trying to figure it out all on your own.

2018 is year of amazing opportunities to profit from market corrections and drops and I know you don’t want to miss out on them!

Start by scheduling your breakthrough coaching session here…and start making money in as little as 7-14 days.
 
Take advantage of the market crash before it takes advantage of you!
 
Schedule your breakthrough coaching session here…and start making money in as little as 7-14 days.