Monday, March 10, 2008

The power to make loads of money from failing equities is within your very reach.

Playing penny options can be one of the best ways to capitalize on downside moves in distressed stocks.

Here's a simple example: What if you were alerted through a simple e-mail in October 2007 that Citigroup Inc. (C:NYSE) was about to get whacked?

The simple course of action would be to buy a put option on Citigroup stock. For example, you could have bought the Citigroup June 2008 42.5 Puts (C RV) in October for $4.75 per contract.
After a massive 52% fall on Citigroup stock, those penny put options contracts are trading for $21.15 per contract -- a gain on your end of 345

These kinds of opportunities are flooding the market these days.

What better strategy can you employ in a time when all major American benchmark indexes are continuing to fall in value?

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