“Destroyer of Risk” with Alan Knuckman

“There’s always money to be made.” [Altucher Confidential] October 13, 2022 [WEBSITE]( | [UNSUBSCRIBE]( Wherein I sit in front of my window, overlooking the early birds, the mountains, pools, the golfers, the sprawl, and probably the drunks. [Hero_Image] “Destroyer of Risk” with Alan Knuckman By Chris Campbell American Retirement…Disrupted? Meet U.S. Patent #10-803-522: [Click here for more...]( It predicted every financial shocker over the past 2 years, including: - War - Inflation - Lockdowns - Supply Shortages - Energy Shockwaves And now… [U.S. Patent #10-803-522 is sounding the alarm on the NEXT big shocker.]( (And no: It’s not a market crash). What exactly is going on? [See how to prepare here.]( [Chris Campbell] CHRIS CAMPBELL I’m a simple man. When my hotel room has a nice view, I move my desk in front of it. That way, I can enjoy the view while I’m working. Or at least pretend to. Enjoy it with me. (Or at least pretend to.) Beyond the blue skies outside my window, there is the sun. Scraping those skies, illuminated by the sun, are the mountains. Below the mountain ranges are the sprawling suburbs. And inside those suburbs? Hard to say, but I bet there are street performers and blackjack dealers and dancers and maybe even a couple of drunks. (As far as bets go in Vegas, I’d say this is a pretty safe one.) Closer, I see the hotel pools with a few early birds around them catching some morning rays from the same sun illuminating the mountains scraping the blue skies over top the sprawl. Further out from those pools and the sun-drenched early birds, I see a big green golf course. And it’s busier than normal. Or, on second thought, maybe it isn’t. I’ve only been here since Monday. One thing I do know, according to a highly credible source (our publisher Doug Hill), is that each golf game on this big green course costs $900 per golfer. One person of note I don’t see on this golf course from this window overlooking the mountains (yes, the same mountains scraping the blue skies illuminated by the sun) is Alan Knuckman. I think I might know why. “Just pointing out the obvious,” he quipped. “Big options payoffs can be much better probability plays than gambing on golf.” Especially, it seems, in Vegas. Trader Extraordinaire Knuckman, if you’re not familiar, is our in-house master trader. Starting as a runner at the Chicago Board of Trade, he moved to trading futures and then futures options in the Treasury pits, racking up 25+ years of market experience. On top of his experience, he has the rare ability to break down complex financial strategies in a way that anyone can understand and execute. One of the things I like best about Alan is he’s an eternal optimist; “Regardless of where the markets are right now,” he says, “I KNOW there is money to be made using the right strategy.” He took the stage at our Paradigm Shift Summit to talk about one of his favorites; an options strategy that he’s fine-tuned over years of disciplined success. With the strategy Knuckman revealed in his talk, you can; → Trade with less capital → Trade with less risk → And wIth higher return potential It’s perhaps one of the best-kept secrets of Wall Street vets… and Knuckman laid it all out here in Vegas. . Here, I’ll share with you my notes. New LIVE Demo Video STUNS Crypto Investors In [this short 3:28 video…]( Crypto genius James Altucher reveals his most shocking crypto secret yet… A little-known secret that’s delivered over $1,170 in FREE crypto income per month. If you AREN’T using this affordable little device… You’re missing one of the best, easiest ways to earn real cash with cryptos. [Click here to watch this short 3:28 video NOW.]( 8 Steps to Trading Success 1.] Focus on the Big Picture. For starters, Knuckman’s aim is to “trade so infrequently that I don’t lose sleep.” (On second thought, maybe I do see him out there playing golf.) With this strategy, there’s no need to stare at screens, grinding your teeth to nubs each day just trying to beat the market. That’s because this time-tested strategy allows you to go into high-conviction trades and sit tight without pulling your hair out. Focus on the big picture, says Knuckman, and you’ll be fine. 2.] “Why” Doesn’t Matter. Knuckman’s “Insiders Insight Indicator” measures options volume, identifying large leveraged position accumulation. In other words, it spots when the smart money takes high conviction bets. 9.999 times out of 10, the pros know something you don’t. Knuckman doesn’t worry about the “why.” He just follows the people who have a better sense of how the market will move. 3.] Under the Radar. The best part about this strategy is it’s completely under the radar for most traders. Large leveraged positions do not require disclosure. Knuckman’s favored algorithm measures what happens right under everyone’s noses. 4.] Gain an unfair advantage. Knuckman also leverages a stock substitution strategy… which dramatically raises the probability of success and minimizes the risk. Stock substitution is an options strategy designed to replicate exposure to a stock, but tying up less capital. (This extra capital can then be used to reduce risk by hedging.) Any stock has a 50-50 chance of moving in a desired direction. With this method, you can raise those odds to 70% and sometimes 80% or higher. 5.] Get Deep “In the Money.” You can do this by buying “In the Money” (ITM) options. The phrase ITM refers to options that have intrinsic value. Intrinsic value is the measure of how profitable the option is based on the difference between the strike price and the market value of the underlying security. Imagine that TWTR is trading at $50. A call option for TWTR with a strike price of $40 would have an intrinsic value of $10. That’s because the underlying security is worth $10 more than the option. In theory, the option holder could exercise the option to buy TWTR shares at $40, then turn heel and sell them for an instant $10 profit. Therefore, the options contract is “in the money” at $10. On the other hand, if the strike price is higher than $50, then the call option would be “out of the money” and worth zero. (Put options, which increase in value as the stock falls, are the opposite. A put option with a strike price of $50 would be considered in the money with an intrinsic value of $2.) Instead of buying stocks outright, deep “in the money” call options can cost significantly less. “It has almost all of the upside of owning the shares for a much lower fixed cost,” says Alan. 6.] Rule One: 70%-Plus Delta. Deep in the money call options should have a delta value of at least 70%, Knuckman says. Sounds scary and complicated, but it’s not: “The delta,” says Alan, “is a measurement of how well the option reacts to movement in the underlying security.” Investors use delta to estimate the probability that a stock option will be in the money at expiration. 7.] Rule Two: Buy Enough Time to Be Right “Time,” says Knuckman, “is an investor’s greatest asset when you have completely limited the exposure risk.” Options decay toward expiration as time passes. As an options buyer, says Alan, “purchase at least three months until expiration to give yourself enough time to be right.” 8.] Overview → Maximum risk is the premium paid. Nothing more. Nothing less. → The option acts a lot like the stock in price movement. → It’s much cheaper than buying/selling shares outright. Thus, it’s a way to: → Trade with less capital → Trade with less risk → And wIth higher return potential Try getting those odds with golf. You can’t. Not even the pros can. Not in Vegas. And especially not at the Wynn, where I sit in front of my window, overlooking the early birds, the mountains, pools, the golfers, the sprawl, and probably the drunks. All illuminated by the sun. [Ed. note: Out of respect for our attendees, I can’t share any specific plays that Alan likes. But opportunities to learn more from Alan are in the works. Stay tuned.) Until tomorrow, [Chris Campbell] Chris Campbell For Altucher Confidential Biden’s Plan to Confiscate Your Cash? [Click here for more...]( On March 9, President Biden quietly signed Executive Order 14067. This Order could pave the way for Democrats holding onto power in 2024. In fact, they could control America indefinitely. A former advisor to the CIA and Pentagon believes this order could allow for legal government surveillance of all US citizens; total control over your bank accounts and purchases; and the ability to silence all dissenting voices for good. To protect your freedom and your wealth, [see his dark warning now.]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( Altucher Confidential is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please read our [Privacy Statement](. 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