Customer Log On
Home
Product Choices
Owl 401k Guide
Eagle Investor
Fox Cash Creator
Neff Custom Work
How Does It Work?
Action Alerts
Past Results
Economic Factors
Risk Management
Go Practice
Your Life Plan
Education Foundation
Administration
Website Map
|
Fox Cash Creator
The Fox Cash Creator was designed for investors who's primary financial objective is to preserve their assets. We plan to demonstrate an investing tool to help you preserve your asset base and also create new cash flow. You can either use the new cash for living expenses or you can reinvest to increase your asset base. When you purchase the Fox Cash Creator, you should also purchase the Owl 401k Guide and the Eagle Investor.
Benefits of Fox Cash Creator
When you own investment quality instruments, you may want to hold them for several years. Using the Eagle Investor, our plan is to purchase undervalued instruments and have them steadily appreciate. During this time period, we can use the Fox Cash Creator to generate new cash flow. We can demonstrate this possibility by using a risk management, hedging technique, known as Covered Calls.
Most people do not realize that they could make money when their investment is going down. The objective of the covered call technique is to help stabilize your account; and also, create some new cash as the stock goes down temporarily. For instance, a healthy investment quality stock sometimes moves up and moves down as it is successfully trending upwards. By opening (sell the contract) a covered call position, you can potentially take advantage of this temporary downward movement. After the stock has moved down into an over sold condition, then you can close (buy the contract back) your covered call position. Sometimes we let the contract expire. If we use this technique successfully, not only do we create new cash, but we retain ownership of the original stock position. Hopefully, the investment is poised to move up again. Once it displays an over bought condition again we can use this hedging technique once more.
Are we taking risk by using covered calls? Yes, in text book terms, it is called an opportunity risk. When we have sold a covered call position based on the original stock (and we were wrong) and the stock actually keeps going up, then the original stock shares will likely be called away from the account. In essence, we missed the opportunity to sell the stock at a higher price. The skill here is recognizing when the stock is in an over bought or over sold temporary condition. That is what the Fox Cash Creator was designed to help recognize. It is not perfect, but our winning percent has been good.
Click here for More Useful Cover Call Information or review some Covered Call Tactics. Or click here for Fox Cash Creator Results . To order our products go to our Order Form .
|