I can tell you from experience that most people have no idea how Wall Street insiders really line their pockets.
We all know about their sweetheart investment banking deals and high-frequency trading, but that’s not their real secret.
It lets them make money even if the stock goes in the wrong direction, giving them a likelihood of success as high as 90% per trade.
That’s right, while the little guy is playing a zero-sum game, Wall Street’s elite are able to practically guarantee they make money every trade.
Over the years, I’ve used this secret to make millions of dollars for myself, my firms and my clients.
And today I plan to share it with you, because while most average investors don’t know this insider secret, there’s nothing stopping you from using it once you do.
Why the House (and Street) Always Wins
There’s a reason casinos win and gamblers lose in the long run. It’s because the house stacks the odds slightly in its favor so it has more than a 50% chance of winning.
A good example is the roulette wheel. At first glance, it looks like there are only two colors: red and black.
So if a gambler goes “all in” on red, he has a 50/50 chance of winning, right?
Wrong. When you look closer, you see there are also a few green slots.
So, while the gambler only wins with red, the casino wins with black… or green. And that makes all the difference.
The casino has improved its odds of winning to just over 50%, and is thus guaranteed to win over the long haul.
My strategy takes the same approach. But while the casino can only improve its odds to slightly more than 50%, I can improve yours to 70%, 80%, even 90%.
It’s all because this strategy allows you to make a big gain even if a stock moves against you by 1%… 3%… 5%… sometimes even more than 10%.
And I’m not talking about small gains either. Depending on the trade, you can make 15%, 30%, even 50% in a month!
Let me show you a real-life example in, ironically enough, casino stock Wynn Resorts (NASDAQ: WYNN).
How I Made 26.6% on WYNN in 19 Days Even as Shares Fell
In a nutshell, this strategy uses a combination trade to gain a statistical advantage over the market. It’s a relatively simple strategy that involves using two options instead of one. Specifically, you trade two options at the same time, but with different strike prices.
One reason I like this strategy so much is that it employs a simple idea every trader is familiar with — buying something up front and then trying to sell it for a higher price.
The goal is to sell the option combination for more than you paid, netting a profit. That’s exactly the same idea behind trading stocks.
But it’s much better than actually trading stocks. As you know, if you simply own a company’s stock, your only hope for making any money is for the share price to go up. If it goes down, even a little bit, you lose money. However, if you use this Wall Street insider strategy, that isn’t necessarily the case.
Here’s how it works:
As long as the stock’s price stays above a certain level (the higher of the two strike prices), we walk away with the maximum profit.
I used this strategy to capture a 26.6% gain from Wynn Resorts. When I initiated the trade this past October, shares were trading just under $67. I recommended a combination trade — two options, one with a strike price of $55 and the other with a strike price of $60 — that had a maximum value of $500. I told readers the most they should pay to enter this trade was $395.
The maximum profit we stood to make on this trade was $105 ($500 maximum value – $395 entry price). As long as WYNN stayed above $60 (the higher of the two strike prices), we’d generate a 26.6% gain in 19 days, or 511% annualized.
That meant shares could go up, stay flat or even drop to $60 — a 10.5% decline — and we would still achieve our maximum profit with only $395 at risk. For this example, the strategy propelled our win probability to over 72%.
As it happens, Wynn’s share price dropped 6.7%. But it didn’t matter. All that mattered was that it didn’t fall more than 10.5%.
Since it didn’t, anybody who made the trade pocketed a 26.6% gain in 19 days.
I want to repeat that, because it’s pretty amazing: Even though WYNN dropped more than 6%, you still could have made 26.6% on a bullish bet in less than three weeks.
Just like the roulette wheel and its green slots, you’ve rigged the game — dramatically improving your odds and setting yourself up to make a fortune.
This strategy isn’t designed for chasing “swing for the fences” gains. Instead, it’s designed to help you pocket 15% to 50% gains in just 30 to 60 days.
If you can do this consistently, you can triple your wealth — or more — over the course of the year.
— Jared Levy
Sponsored Link: Based on the success of this strategy, I’ve spearheaded a bold new venture called The Insider’s Club that’s designed to help you triple your wealth in a year. Learn more here.
Source: Profitable Trading