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TEEKA’S ALPHA EDGE QUICK-START INVESTMENT

GUIDE: THREE TRADES TO MAKE IMMEDIATELY

By Teeka Tiwari and William Mikula


TEEKA’S ALPHA EDGE QUICK-START INVESTMENT
GUIDE: THREE TRADES TO MAKE IMMEDIATELY
By Teeka Tiwari and William Mikula

Over my multidecade career as a Wall Street executive Trades No. 1 & 2: Instant Cash Payouts
and hedge fund manager, I witnessed the smartest
money managers I know make their clients untold As you know, we only target the most elite companies
millions using just a handful of safe, alternative in- with our Instant Cash Payout technique.
vestment strategies.
These companies are safe. They’re profitable. They
These are strategies most regular investors know take care of shareholders in spades. And as an add-
nothing about… ed layer of safety, we target companies that are still
cheap—despite a nine-year bull market.
In this special report, I’ll share three trades using these
strategies with you. You can make these trades imme- The companies that demonstrate our strict rules are
diately, and potentially make huge profits safely, just Oracle (ORCL) and Microsoft (MSFT).
like Wall Street hedge fund managers do every day.
With our Instant Cash Payouts, we generate instant,
The first two trades we’ll make is what we call an In- upfront cash. We agree to buy shares in companies
stant Cash Payout. we love at prices we like. Our offer serves as a form of
“insurance” for put buyers. They know that no matter
Hedge funds like to make Instant Cash Payouts be- what, they have a buyer for their shares.
cause they collect steady premiums upfront. We use
this strategy to generate instant income on stocks And we’ve done all the deep research ahead of time.
we’d love to own. But we get paid while we wait for This means we’re more than happy to scoop up shares
them to come into a range we’re comfortable with. In at our target price—if they drop to that level during
this report, we’ve found two great companies to use our holding time.
this strategy on.
But above all else, one thing influences the amount
The final trade is a Skim Trade. of cash we receive: fear and panic in the market. And
that’s what we’ve been waiting for.
Skim Trades is our term for a simple, yet highly prof-
itable, hedge-fund trading strategy called “merger ar- In the stock market, the Volatility Index (VIX) mea-
bitrage.” Arbitrage involves buying securities with the sures fear and panic. The higher the index level, the
intention of selling them over a short period of time to more fear there is in the market.
take advantage of a price discrepancy.
Here’s what that means for you… As the VIX goes up,
We’re “skimming” quick gains and income from the Instant Cash Payout prices skyrocket. In times like
market. And this is a great way to have your capital these, our Instant Cash Payout strategy can pay two
growing throughout the year without tying it up long- times (or more) what it normally pays.
term.
This is our game plan to take advantage of it:
All right, friends… enough talk. Let’s start making
serious money with the Alpha Edge… • We’ll cash in on elevated volatility with two
new Instant Cash Payouts today.

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• Once volatility recedes, we’ll either close our
trades early to lock in large annualized re- If you’ve never traded options before, go through
turns, or we’ll hold to expiration and keep all our options training course first. It’ll walk you
the upfront cash. through the whole process. We recommend
paper-trading your first few trades to get used to
Simple… but profitable. options. This will ensure you don’t lose any mon-
ey if you make a beginner’s mistake. Once you’re
Today, we’re going to target elite Big Tech companies. comfortable trading options, feel free to act on
After all, the tech-heavy Nasdaq has been the hardest any of our future trade alerts. We’ll have plenty
hit in this recent sell-off. of opportunities every month.

But these companies are still gushing cash, expanding You can find the videos and trading logs through
market share, and paying shareholders steady streams your Alpha Edge home page. Click on “Training
of increasing dividends. Course” in the right-hand corner. From there,
click the “Resources” button on the top right.
So there’s only one thing left to do… Let’s earn our
Instant Cash Payouts.

Remember our No. 1 rule of options trading: Only


Trade No. 3: Skim Trade
sell as many contracts as you can afford to buy. Each
With our Skim Trades, we wait for a buyout deal to be
option contract represents 100 shares.
announced. Then, we analyze the deal to see if it fits
our strict criteria.
For now, just know that we have the classic Alpha
Edge setup: Heads, we win; tails, we don’t lose.
Most of the time, the stock price of the company being
acquired doesn’t rise to the announced deal price.
1. Action to Take: Sell to open the Oracle
After all, there’s always a bit of uncertainty the deal
November 16, 2018, $46 put option (OR-
won’t ultimately close.
CL181116P00046000) for a limit price of
$0.70 per share ($70 per contract).
With this strategy, we do rigorous research until we
feel confident a trade will go through. And we also
This means do not accept anything less than
make sure the underlying company is strong. That
$70 in Instant Cash per contract sold.
way, we won’t buy a subpar company that’s totally
We’re offering to buy Oracle at a 2.8% dis- dependent on a buyout to generate a profit.
count to current prices. If shares don’t drop to
Enter our Skim Trade pick: insurance holding compa-
$46, we’ll lock in a 17.4% annualized return.
ny AmTrust Financial Services (AFSI). AmTrust
2. Action to Take: Sell to open the Microsoft provides specialty property and casualty insurance
November 23, 2018, $103 put options (MS- under three segments:
FT181123P00103000) for a limit price of $2.10
• Small Commercial Business unit: provides
per share ($210 per contract).
worker’s compensation and commercial insur-
This means do not accept anything less than ance packages.
$210 in Instant Cash per contract sold.
• Specialty Risk and Extended Warranty unit:
We’re offering to buy Microsoft at a 4.3% dis- sells coverage for consumer and commercial
count to current prices. If shares don’t drop to goods.
$103, we’ll lock in a 22.3% annualized return.
• Specialty Program unit: writes commercial
insurance for niche industries that have a low
risk of making a claim.

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In January 2018, AmTrust announced it would be While we don’t expect Arca to secure the high-water
acquired by a holding company, Evergreen Parent, in mark of $35 per share, anything above $14.75 is sim-
a $2.4 billion deal. ply a profit sweetener for us.

Legendary activist investor Carl Icahn promptly built In the worst case, the deal closes at $14.75 per share
up a large 9.4% stake in AmTrust and sued Evergreen by the end of the year, and we’ll make 20% annualized
Parent, accusing it of significantly undervaluing Am- gains.
Trust.
In the best case, Arca wages a successful campaign to
After a few months of back and forth, Evergreen ulti- raise the final price tag to take AmTrust private.
mately agreed to raise its offer from $12.25 per share
to $14.75. As you can see, we have another classic Alpha Edge
setup: Heads, we win; tails, we don’t lose.
This sweetened $2.95 billion deal price received
Icahn’s backing. Evergreen Parent is composed of insiders with a
significant interest—and experience—in running
AmTrust’s current share price is $14.25. This means AmTrust. And while we can’t blame them for seeking
there’s a 50-cent spread between the current price and the cheapest price possible, we can take a position to
the deal price Icahn supports. “skim” as much profit as possible while this buyout
plays out.
According to the dealmakers, the buyout will close
by the end of the year. This means we could net a We’ll review AmTrust again for an update on the
3.5% gain ($0.50 spread/$14.25 purchase price) on boardroom jousting. But in the meantime, let’s posi-
our capital in roughly two months. Annualized, that’s tion ourselves to skim profits from Wall Street.
around 20%.
Action to Take: Buy AmTrust Financial (AFSI).
But there’s one added wrinkle here that could boost Buy-up-to Price: $14.40
our profits… Position Size: Do not place more than 5% of the
funds you’ve set aside for Teeka’s Alpha Edge into this
Another large shareholder, Arca Capital, is vigorously trade.
fighting against the $14.75 deal price. It feels the price Expected Holding Period: Plan to hold until Am-
is still way too low, and holds a long-term price target Trust is taken private, or until another bidder comes
on the stock of $25–35 per share. in with a higher offer price.

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