The Stock Buyer’s Savings Book

* I’ve added ONE BONUS recommendation to the end of this report. As you’ll see, it’s for a discount of up to 32%, and it could put an additional $450 to $1,100 in your account instantly. Go ahead and look at everything – and enjoy your bonus!

Never pay full price for a stock again.

Using the coupon codes below, you will be able to put yourself in the position to buy stocks that Warren Buffett recently bought for prices less than he paid.

Not only that, you will be able to buy them at discounts ranging from 20% to 35% below the current price. And regardless of what happens, you will receive more than $2,000 just for the opportunity to buy these high-quality companies at a discount.

What we call “coupon codes” are what the market calls “ticker symbols” for the put options that we are going to sell.

Each recommendation below clearly states the symbol, strike price and expiration date. All you have to do is enter the information on your broker’s options trading page and press “SELL TO OPEN.” The money will be deposited in your account immediately and is yours to do with as you please.

I have put together several reports and videos that walk you through the steps. You can access these resources on the Automatic Trading Millionaire section of oxfordclub.com at any time. And if you need assistance from our VIP Trading Services Team, just call us toll-free at 888.570.9830 or 443.353.4540.

Further, I have listed a broker at the end of this report who would be happy to walk you through the trade or answer any questions you may have.

We’re in this game to make money and possibly own some of the best companies in the world at bargain prices.

I say “possibly” because it’s rare that we actually get to buy these companies at huge discounts. That’s OK. We’re happy keeping the cash we make from the trades!

There is no denying that Warren Buffett is the greatest investor of our time. He has a knack for buying at the right price… and at the right time.

He was buying Apple when everyone was selling, making billions in just a few months. He bailed out of General Electric and Goldman Sachs prior to their serious crashes, making billions more.

Well, here’s your chance to beat the master…

Using our coupon income-generating put-selling strategy, we are going to sell puts on two companies that Buffett loves and owns but at huge discounts to what they’re trading for right now… and in some cases, huge discounts to what even Buffett paid for them. In the process, we can bank as much as $2,480 instantly. And, I have included two bonus picks just to make sure you will be able to collect at least $2,480. It’s up to you to decide if you want to do one pick or all five!

Each trade I’m going to recommend below can be done with as many contracts as you choose. If you’ve never traded this before, you may want to start small with one or two contracts. You won’t collect the full $2,480 that way, but you’ll get a taste of how this works so you can become more comfortable.

Be sure to position size. This means figure out how many shares of the underlying stock you would be comfortable buying and sell the corresponding number of options contracts. That way if you are ever put, you will be happy with the position you entered. No one likes surprises when it comes to put selling.

For example, if you are comfortable owning 1,000 shares of AT&T, then you would sell 10 contracts. Each contract represents 100 shares. If you feel better with just two hundred shares – despite the huge discount – then sell two contracts.

On the other hand, if you already feel comfortable, you can generate $2,480 or more if you wish. But for the purposes of this recommendation, I am specifying 10 contracts per trade. That will get you to the $2,480 promised or more. Right now, the total from all five trades, if you do 10 contracts on each, is way more than $2,480. You can choose to do as many contracts as you are comfortable with.

IMPORTANT: Do not place any of these trades before 9:50 a.m. The options markets do not begin trading with any level of liquidity until well after the regular market opens. DO NOT PLACE TRADES AT THE OPEN!

Coupon Code No. 1: SYF January 2020 $20P

Warren Buffett established a position in Synchrony Financial (NYSE: SYF) by taking a 2% stake in the company in early 2017. Then he added even more shares toward the end of the year. Buffett knows a bargain when he sees one. We’re going to get in at even better prices than what Buffett paid if we get put the shares… which I don’t expect.

Synchrony surprised Wall Street with its last earnings announcement when it released better-than-expected earnings. This came on top of some large insider buying when the shares were trading in the mid-$20s.

Synchrony was spun off from General Electric (NYSE: GE) and has been in business for 85 years. It’s telling that Buffett picked up Synchrony but sold General Electric. He is betting that this purveyor of consumer finance through private-branded credit is going to benefit from growth in consumer spending and borrowing in this financial cycle.

At current valuations, Synchrony is trading at around 12 times forward earnings. That’s about a 40% discount to its peers and more than a 60% discount to the market.

However, things are not all rosy for Synchrony. Last quarter, the company recorded higher-than-expected reserves for charge-offs. But in recent monthly reports, the trend seems to be shifting the other way, which could be very positive for the shares in 2019.

Charge-offs are consumers who fail to pay their debts. Buffett and the market are betting that this is not a trend but an aberration. That is the risk in this play. With a growing economy and increased consumer spending trends, the risk is not as high as it would be if we were heading into or in the midst of a recession.

Synchrony also has a very strong consumer banking business where assets are increasing. The company reported better-than-expected margins as interest rates have moved higher over the past few months, allowing the bank to increase its net interest margin.

If, as filings indicate, Buffett bought his shares around $29.82 per share for his $520 million investment – and even more for his latest batch of shares. We are going to position ourselves to pay under $21 per share for the same shares. Although the puts I’m recommending have January 2020 expirations, I expect to close out our positions earlier, barring a protracted market crash.

Here’s the trade…

Sell to open the Synchrony Financial January 2020 $20 puts (SYF January 2020 $20P), currently trading at $1.15 on the bid by $1.35 on the offer. Sell the puts for $1.25 or higher.

Coupon No. 2: LUV January 2020 $35P

The second Buffett-related pick is his biggest position in the airline sector: Southwest Airlines (NYSE: LUV). Buffett picked up more than 43 million shares of the company between $38 and $50 per share. We’re going to be able to own it for less than $35 if we get the chance. It won’t be very likely though, as the shares are currently trading above $50 per share.

Buffett purchased shares of four airline companies: Delta, United, American and Southwest. All of them are good candidates, but what makes Southwest the best is its lack of exposure to international travel. Southwest is mostly a U.S.-centric operation. It also offers extremely competitive fares and maintains huge user loyalty from its customer base.

A generous frequent flyer program, a very homogenous fleet of aircrafts and lower operating costs than those of many competitors make the company one of the premier airlines for investors. It also has room to grow revenues if it chooses by adopting similar à la carte pricing models for things like baggage. It has resisted so far and, as a result, gains a lot of business and loyalty from those who perceive its liberal baggage policy as a plus.

Low oil prices (which look to stay stable for a while), the possibility of increased business and leisure travel within the U.S., and a generally strong economy bode well for the shares. An obvious risk is a terrorist attack that would affect the entire sector. However, Southwest has the most resilient model because of its domestic footprint. The probability of getting put on this trade is less than 10%.

Here’s the trade…

Sell to open the Southwest Airlines January 2020 $35 puts (LUV January 2020 $35P), currently trading at or around $0.90 on the bid by $1.05 on the offer. Sell the puts for $1.00 or higher.

Coupon Code No. 3: T January 2020 $20P

In 2018 AT&T (NYSE: T) closed the their acquisition of Time Warner. The jury is still out on the benefits of the move and the Justice Department is trying all it can to derail the acquisition on antitrust grounds. We think the Justice Department’s appeal will fall on deaf ears and the merger will stand.

The company reaffirmed its earnings at $3.60 for this year and projected single-digit growth for next year. At the current price around $30, that means AT&T is selling for 8 times this year’s earnings and less than that for next year. All the while, the company is sporting a solid 6.8% dividend – and insiders have been buying the shares at current levels as well.

Competition is nothing new for AT&T. Going forward, competition will only increase as people seek alternatives to how they communicate and receive media. The company is in the midst of integrating or swallowing two huge companies, DirecTV and Time Warner. These are mega-deals by any standards, and that brings with it uncertainties. Especially in the case of Time Warner, where the government is opposing the deal. And investors hate uncertainty… especially when combined with an earnings miss.

What investors are overlooking is that AT&T is not new to mega-deals or mega-restructuring. Its history goes all the way back to the days when the government disbanded its telephone monopoly. Not only did it transition out of that, but it became a much larger company and infinitely more profitable.

Don’t bet against AT&T. Its acquisitions allow it to be a dominant provider of communications and media. It would be naïve to think that we are all aware of the changing media and communications landscape but the company isn’t. Change brings opportunities like cord-cutting, unbundling, and newer and better media experiences.

For us, we will take advantage of the short-term confusion and the sell-off in the shares to initiate a position using put options to land us the shares at a massive discount to its current price and almost 20% below its 52-week highs. We’ll potentially get in at levels not seen since 2010, or we’ll get paid almost 14.7% just for trying. If we do get put at our adjusted cost of just over $27, our dividend yield would be more than 7%.

Here’s the trade…

Sell to open the AT&T January 2020 $20 puts (T January 2020 $20P) for $0.45 or higher. The current bid is $0.42 and the offer is $0.45. 

The total income from these three coupon codes, if you did 10 contracts for each one at our limit price, would be more than $2,000 – try to get more if you can! I am including one more bonus play below that will insure that you get well over the $2,480 we promised. In fact, if you did all five you’d be pushing $3,000!! You can trade as many contracts or as few as you feel comfortable with.

And remember, we could potentially own the shares of Southwest Airlines and Synchrony Financial at prices even lower than what Warren Buffett paid!

Even though the expiration dates are in January 2020, our average holding period for 2018 was less than four months. Once you recover more than 50% of the possible premium, close the position.

BONUS PICK:
Coupon Code No. 4: FEYE January 2020 $12P

FireEye (Nasdaq: FEYE) has turned the corner and with good timing to boot. The company is one of the cutting-edge providers of cybersecurity solutions and hacking prevention. In 2018, FireEye reported record revenue and billings, and achieved full-year profitability (non-GAAP) for the first time in its history.

It raised expectations for this year for both sales and profits. The shares have been volatile so far this year but I’m expecting them to head higher as the news cycle is consumed by hacking and cyber threats. We’ll see some volatility in the shares because of the general market volatility, but FireEye should buck the trend along with the rest of the cybersecurity industry.

FireEye is one of those “stocks to own” in the current age of digital threats – a budding blue chip in a major growth industry. But we want to own it at our price. And that means a discount to where it’s trading right now.

Take your time and you will be filled at or above our limit price. Be patient and do not chase the option. The current market has ample volatility to fill us at our limit price or higher.

Here’s the trade…

Sell to open the FireEye January 2020 $12 puts (FEYE January 2020 $12P), currently trading between $0.75 and $0.88. DO NOT accept less than $0.80 per contract. Try to get a fill between the bid and offer! 

That’s it. Please be sure to stay tuned to your inbox for more opportunities from Automatic Trading Millionaire. You can potentially get name-brand stocks… loved by the world’s savviest investors… at massive discounts, even as high as 50% off.

It’s time to turn the knowledge you’ve just acquired into money!

Cheers,

Karim Rahemtulla

P.S. If you don’t currently have an options account, please refer to my report titled “How to Set Up Your Regular Brokerage Account to Trade Options.” It will walk you through the process.

If you want help in setting up your account and want access to an experienced options broker, I suggest you contact Pillar One Advisor Greg Long of International Assets Advisory LLC at 800.329.1984 or glong@iaac.com

REMINDER: Do not place any of these trades before 9:50 a.m. The options markets do not begin trading with any level of liquidity until well after the regular market opens. DO NOT PLACE TRADES AT THE OPEN!

Please keep in mind that stock and option prices are subject to change, so your discount rate may vary.