Please excuse all the acronyms, let us define them up front for those who aren’t familiar with them.
AIM is Automatic Investment Management, first developed by Robert Lichello over 30 years ago. In his book How to Make $1,000,000 in the Stock Market Automatically (first published in the 1970s), he described a contrarian method to automatically buy low, sell high, and profit from the ups and downs in the stock market regardless of what personal emotions or commentators might tell you otherwise.
Using the AIM method with 10 of the most “boring” Dow Jones Industrial stocks, Jeff Weber’s DJIA STOCK portfolio has increased 1,103% from 1993 to 2019.
Investors who want to profit from the tech revolution are interested in FAANGs. This acronym refers to high tech companies such as Facebook, Apple, Amazon, Netflix, and Google (now Alphabet). FAANG refers also to the larger ecosystem of major high tech companies, not just those.
LEAPS are Long-term Equity Anticipation Securities. They didn’t exist when Robert Lichello created AIM. LEAPS began in 1990. LEAPS are options on a company stock with as much as a two (2) 1/4 year option period. The definition of LEAPS is an option that has more than one year before it expires and expires the 3rd Friday in a January.
LEAPS are more volatile than the stock they represent and a lot cheaper. They are also bundled into larger quantities. One LEAPS contract (the minimum amount you can trade) controls 100 OPTIONS of that company.
When you have a method to only buy or sell when it is safe and profitable to do so (because the price of your investment has moved up or down enough to justify a buy or sell), when your investment is also more volatile AND you have more ownership – it means you will earn much greater profits over the long term!
For those still wondering how risky LEAPS are, you need to know this: only established, profitable, and highly capitalized companies have LEAPS. If you can invest in LEAPS for a company, that is a huge signal of confidence that the company will be around for a long time. (But of course there are no guarantees.
Wondering how many LEAPS are available? At the end of 2018, there were exactly 911 companies that had LEAPS available. (Subscribers to the JJJ Investing Services Newsletter got this list as a Christmas present.)
Robert Lichello has taught many investors about the AIM strategy over the years. Jeff Weber was himself a student of Lichello’s books and methods. Jeff was inspired by Lichello’s system to use it, improve on it, and teach it to more people.
Then Lichello passed away and LEAPS were born. Since then, Jeff Weber has become the world’s leading teacher and authority on using the AIM Method with LEAPS.
Investing with long term options has some important differences with stocks.
Investing with long term options also has some important differences with short term options, such as day trading.
One important point to emphasize – investing with LEAPS is NOT day trading.
In fact, AIM and LEAPS is such a unique combination that it can be highly profitable (and safe) with an update to your portfolio once a month.
Hard to believe, we know. But the “January 2021 In the Money LEAPS” Portfolio featured in our monthly newsletter has increased 726% from August 2016 to May 2019.
Has one of your portfolios increased over 7X in the past 3 years?
Another portfolio tracked in our monthly newsletter with some FAANG companies has increased from $1,000,000 to over $3,100,000 from January 2016 to May 2019.
Wouldn’t it be exciting to see one of your portfolios triple in value the past 3 years?
One secret to this performance is using the Automatic feature of the AIM method.
Another essential piece of knowledge is knowing which LEAPS to invest in, and WHEN to make your first buy.
Then you need to know HOW to place limit buy and limit sell orders through an online brokerage account at the most profitable LEAPS values. Doing that will make the trades happen automatically as soon as those prices are reached.
You also need to know how many LEAPS contracts you should buy and sell with each trade.
Then after each trade, you need to update your portfolio and recalculate the next buy and sell price and number of contracts.
This probably sounds like a lot to know, to understand, and to do.
Fortunately, you have found the place online where the world’s leading expert on this topic makes his home. That is Jeff Weber of San Antonio, Texas.
More fortunately, Jeff and his team at JJJ Investing Services have been hard at work over the past few months putting his knowledge and instructions to answer all of the above points into one book.
For the first time, this includes actual screenshots of an online brokerage account. You will see step-by-step how to find the right LEAPS, enter the instructions for an order, and set it up to happen automatically when the price is profitable.
This book will also go into detailed explanations and narratives for every step in the process. You will see actual spreadsheets and calculations, along with narrative explanations for how and why each step is done.
Feedback from previous readers of Jeff’s books and clients told us that it would be very helpful to go into this step-by-step instruction. Since Jeff has been mastering the AIM method for 30+ years, what is obvious and intuitive for him isn’t true for a lot of people new to this investing method.
The target release date for this authoritative book on long term options trading with FAANG companies is the end of July in 2019. As a special treat for clients and subscribers to JJJ Investing Services, we plan to release the book at a steep discount during its first week of availability. If you aren’t already a subscriber to our blog posts, enter your email address to be notified of future posts. We will make another blog post when the book is available.
Subscribers to the monthly JJJ Investing Services newsletter will also get an email letting them know when the book on AIM investing with FAANG LEAPS is available. You can get the first year of this valuable newsletter by requesting that here.
We appreciate your interest in learning how you can profit with FAANG companies through smart, safe, and reliable investing methods. We look forward to sharing more exciting news in the weeks ahead.
Disclaimer: Jeffrey Weber is not an investment adviser and gives only his personal view and opinion, never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment adviser.