HOLX had a monster run, with a 231% in the CALL options and 14 points in the stock.
In this Issue---- Auto Trading Program
- SplitMaster Basic System-- It never gets boring
- SplitMaster Big Dipper System--All quiet on the Western Front
- Options--What a start to December
- S+P 500 --Getting closer
- The Quest--Goal:Turning $1,000 into $1,000,000 in 10 years.--Past the goal
- Chart Indicator--More of the same
- Split comments--Who says December isn't doing well?
- New Option Testing--Patterns & Spreads continuing to win.
- Testimonial of the Week--The stories are rolling in
- Economy Reports and Commentary--Ho, Ho, Ho
- Today's Thought.
Auto Trading Program
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SplitMaster Basic System---
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November was the best month of this year, and now we are wondering if December can surpass it. Checking Past Results for this month, we see that we are running at over a 15% profit so far this month. BRO, HOLX and WFT were all very good splitters. There are 6 more active splitters still going and it pleases me to say that all 6 are showing nice profits to this point. We kept telling everyone that we were entering the best months for the market and while we don't want over confident, we can't help but cheer the results and our belief in the systems. No, this never gets boring--bring it on.
Big Dipper System---
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There isn't anything going on in this system at present. It is quite understandable that with the split market that we have had, there might not be any of them that take a dip. The closest thing would be any of the energy stocks, which are pretty volatile, moving with the price of oil. Since we are based in California, we like to think that all is quiet on the Western Front. (For some of you old timers that remember a great book and movie.)
Options---
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This option market for splitters is spoiling us. HOLX comes in with a 231% gain in the calls, 89% in the PUTs (maximum is 100%), preceded this week by WFT showing a great figure of 165% in the CALL. The month led off with BRO showing a 209% call profit and 85% put profit. Incredibly, the month is running at a net gain of 208% on the calls. Can we sustain this? I don't know, but with all the Basic active stocks showing gains, it could well be better than last month.
One point of interest on the posting of options to the website. We post the potential option, CALLs and/or PUTs, the day before the scheduled buy date. We show the closing bid/ask prices of the options in question. That is just a guideline, as it is hardly ever that the option opens the next day at exactly that price. We can leave that column blank, if it less confusing to you. We would continue to show the strike price and the month that we have selected. Team members, please let us know if it would be easier to understand if we left off the preliminary bid/ask price of the options
Now excuse me for saying the following, but I just don't understand something. We are cranking out some excellent option results and there are some of you out there that are not team members in this endeavor to beat the options market. We have people write in saying that our figures are too good to be true, but our members know that they ARE REAL. Stock splits have been profitable for 30 straight years and it is only logical that overall there should be a profit in options. We are getting many emails from team members that show they are participating in these exciting times. Let me take a moment to discuss the cost of our membership and compare it to the results. After all, that is how it should be done---do the results justify the cost? So, what are the results? Looking at Past Options, we see a year-to-date profit of 134 points meaning if you had one contract of each you would have profited $134 X 100 = $13,400. Then we take a look at the new Pattern/Probability option returns and see it's already ahead 23 points (and we didn't calculate options on the first 3 winners in this system). Together that's a total of 157 points of gains, or $15,700 in profit for having 1 contract on each. If you had 10 contracts of each that equals $157,000. Our option fee is $94.95 per month, rounded out to 1 point on 1 option contract. If you only played one option per play, that would be a cost of $1,100 for the first 11 months of this year. For playing just 2 contracts on each, you would see a gain of $31,400 and the fee of $1,100 would be 3.5%. For more options per play, of course, the fee % would go down. I don't know, when I look at real estate, it is a 6% commission just to sell a house. It just seems to me that the cost of our options program can not be a valid reason for not being in. I think it is more of a question of how long can this continue?? Well, last year (2004) was even better, so that takes care of one thing. OK, how about the fact that our studies have shown 30 straight years of winning splitters? Doesn't that get factored in? I know it is hard to believe that this can continue, but history is on our side. We get immense joy in getting feedback from our members that are following the options systems. WE WANT YOU TO MAKE MONEY. Just like Jim Cramer on CNBC, that's our goal. How long are you non-members going to keep reading about this before you take a stab at it, especially if you have played options before? On top of all of this, we have such a great guarantee period, where it doesn't cost you a dime if you give it a try and then see it is not for you--as long as you cancel before the end of the first month. That gives you enough time to get familiar with how we operate. We even have the Automatic Trading Program set up with the broker, and you don't have to do a thing but direct them as to what system you want to play. I don't think it can be any easier to invest, I really don't. Having said all that, I have to point out that we don't guarantee that the future results will be the same, etc., but we do fall back on 30 years of historical studies that show stock splits have made good profits. So we believe the success will continue.
S+P 500 Options---
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Nothing in play right now, but we think we are getting closer to some new action. Remember, knocking on all that wood, this is the system that has never lost.
The Quest---
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We want to take the time to again point out that The Quest is not a system, but a personal goal we have set upon ourself to see if we can get to $1 million in 10 years or less, by starting out with $1,000. There is no pre-posting of our plays, but they are plays from our systems, mabye not bought or sold at the same time as the system plays, but admittedly cherry-picking. And--we are showing that we would have done much better by not cherry-picking, when comparing our picks with the system picks. For example, we were not in HOLX, if you can believe that--someone hit me on the head. The goal is to double our money each year, so by starting out with $1,000 at the beginning of this year, 2005, we wanted to reach $2,000 by the end of this year, and $4,000 by the end of 2006, the 2nd year. What are the results, so far? Even tho we missed so many big plays, we have increased our investment pool to $4,326 at present. That means we are over a full year ahead. We want to get closer to playing more of the systems and less cherry-picking. Keep posted.
Chart Indicator---
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The Indicator remains positive, which keeps us feelling comfortable.
Stock Split Comments---
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The major indexes have had 2 weeks of results that showed changes of less than 1%. Many "analysts" seem a bit concerned with the results thus far, having expected that there would be more follow-thru from the November rally. We say, BRING IT ON, give us more of the December splitter results. We expected December to do well for us, and so far, nothing has given us reason to regret that expectation.
New Option Testing---
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The 2 new systems are continuing to roll along. In our Pattern/Probability system (PP), Friday closed out our biggest point gainer, AET, which met our goal a full 22 days before the target sell date. Yes, it made a full 10 points of profit in the stock and the call option made a great 6.30 points just for itself. Remember, we are not even posting the writing of puts for this program, and that's what the logic would call for. So far, each PP play has closed out with a gain. We can't expect every single one to be profitable, but so far we have 10 plays that have closed out and all 10 have been profitable. Leece sent us CCJ, which also closed out this week and the option had a magnificent gain of 129% in just 2 weeks. Thanks for that one, Leece, but you know the old saying--"What have you done for me lately?"---
Put your thinking cap on and find us another one. We all share here, and that's one of the things I really like--the exchange of ideas. Presently we have 4 open plays in this system, thru Dec. 31. There may be a new one coming up around the middle of December, but we have to see the price at that point. REMINDER-- the location of this system is temporarily found on the website at Past Results, Past Dipper page, scrolling down a ways. A terrible place for it, but we are working on it.
The other system is the Credit Spread System, and Tony and Pat, are the creators of these spreads for us. So far, they have closed out profitable results in CAM, FAST, WFT and TRID. Still in play for them are spreads in EBAY, DOW, ABC and WFMI. These are not posted on the web site, but team members can create their own, if they are experienced. I wouldn't even think of doing this one without paper trading and learning exactly how it works. It is really for very experienced option players.
Testimonial of the Week---
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This is what I mean about getting feedback that makes us have big smiles on our faces.---From Leece--
" I am now going to jinx myself again and tell you my account is now up over 200%. Even I can not believe it and I am living it. I keep thinking I am going to take a hit, but we are definetly in the right stocks. I think the stock market is going to go down, and even when it does the stocks we're in go up. Love it! Cheers, Leece"
The Economy---
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It seems to me that the economic reports continue to come in on a positive balance. There is finally starting to be some concern over the housing market, but we have predicted that for a long time. You just can't mathematically keep up those figures---but overall, the news continues to be good.
Today's Thought---
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"I do not think there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature." - John D. Rockefeller
Mike
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