SPECIAL REPORT

The 3-Stock Retirement

Blueprint
The 3-Stock Retirement Blueprint
By Jeff Clark

It’s easy to make money in the stock market – if you just keep it simple.

Think about it this way… The stock market only moves in three directions. It moves up.
It moves down. And, it moves sideways. So, really, all you need to do in order to profit
is to utilize a strategy that takes advantage of moves in those three directions.

You don’t have to create a trading algorithm. You don’t have to hire a team of high-
priced analysts. And, you don’t have to sit behind a computer all day, every day,
following hundreds of stocks.

In fact, you can become a successful trader and make tens of thousands of dollars in
the stock market – over and over again – by trading just three stocks.

That’s right… JUST THREE STOCKS. And in this report, I’ll show you exactly how to do it.

You see… it’s not about the stocks. It’s about the strategy.

You can pick any three stocks you like (I’ll show you my current favorites in a
moment). In any given year, just about every stock will experience several week-long
periods of rallies, declines, and consolidations. All you have to do is spend a few
moments each day determining which pattern the stock is in. Then you implement an
option strategy best designed to take advantage of those patterns.

That’s right… The 3-Stock Retirement Blueprint is actually an options trading

blueprint.

WHY OPTIONS?

Options are designed to reduce risk.

Sadly, that concept is lost on a lot of novice traders. They use options to increase
leverage, to get more bang for their buck, and to try to get rich quick.

That rarely turns out well. Most of the time, trading options in this manner ends up
creating large losses.

But, if you use options the right way, you can end up making more when you’re right
– and losing less when you’re wrong – than by owning (or shorting) the underlying
stock. Let me show you…

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For example, let’s say you wanted to trade one of my favorite stocks, the VanEck
Vectors Gold Miners Fund (GDX). For those that don’t know, GDX is an exchange-
traded fund that tracks the performance of companies in the gold mining industry.

At writing, it’ll cost you about $2,800 to buy 100 shares of GDX.

Alternatively, you could buy a call option – which gives you exposure to 100 shares of
GDX – for about $100. If you’re right and GDX moves higher, you’ll make a much larger
percentage return on the call option than you will on the stock. And if GDX moves
lower, the most you can ever lose is the $100 you paid for the option.

In other words, if GDX falls 50%, all the way down to $14 per share, you’d lose $1,400
if you bought 100 shares. But, if you bought the option, the most you can ever lose is
the $100 you paid for the option.

Here’s the mistake many novice traders make: Instead of taking $2,800 and buying
100 shares of GDX, they take the $2,800 over to the options market and buy 28 call
options – which gives them exposure to 2,800 shares. In other words, they use
options to leverage their trade to 28 times the normal position size.

That’s just stupid.

Successful traders don’t do stupid things. We use options to reduce risk rather than
increase it. And here’s how we’ll do it…

HOW THE STRATEGY WORKS

Every recommendation we make in Jeff Clark Trader will fall into one of three
categories…

• Buy Call Options – designed to profit as a stock moves higher

• Buy Put Options – designed to profit as a stock moves lower

• Sell Uncovered Put Options – designed to profit as a stock moves sideways or

higher.

In each recommendation, I’ll explain how the option strategy we use reduces our risk.
I’ll suggest an appropriate position size based on the potential reward on the trade.
And, I’ll tell you exactly where you should look to take profits on the trade.

That’s how you reduce your risk by trading options: Having a specific plan, and not
overleveraging your risk.

Let’s use GDX as an example again and look at how we could have traded it recently…

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I love to trade GDX. Gold stocks are volatile. They move all over the place and change
direction several times each year. That gives us multiple opportunities to trade GDX
for profits.

In 2016, for example, I traded GDX 23 times. Twenty-two of those trades were profitable.

In 2017, I recommended 13 trades on GDX. All 13 of those trades made money.

So, you can see why I like trading GDX. And, that’s why GDX will be a core position in
the Jeff Clark Trader portfolio.

To understand how we’ll put our strategy into action, take a look at this eighteen-
month chart of GDX…

During this 18-month period, GDX went through six distinct trends: two uptrends (in
blue), two downtrends (red), and two sideways consolidations (green). Each trend lasted
for at least one month. And, most trends gave traders multiple opportunities to profit.

In uptrends, traders can profit by buying call options and/or selling uncovered put
options. In downtrends, buying put options is often the most profitable strategy. And,
when a stock is chopping back and forth in a sideways consolidation, traders can
usually profit by selling uncovered put options.

The secret to maximizing profits is to recognize when one trend is ending and
another trend is beginning. Traders can then adjust their strategy in anticipation of
the trend change.

For example, GDX was in an uptrend from September 2018 until February 2019. So, the
most profitable strategy would have been to buy call options on GDX.

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The stock then traded sideways for a couple of months. And, the most profitable
strategy during that choppy period would have been to sell uncovered put options.

Then GDX started to fall. It was in a downtrend from early April 2019 until mid-May.
Traders could have profited by owning put options on GDX during that time frame.

THE JEFF CLARK TRADER PORTFOLIO

As I mentioned previously, traders can pick just about any three stocks in order to
trade with this strategy.

In any given year, most stocks will experience several week-long periods of rallies,
declines, and consolidations. For the Jeff Clark Trader portfolio, I’ll be recommending
trades on three stocks that appear to be in the process of ending one trend pattern
and beginning another.

We’ll also rotate stocks in and out as conditions change. If one of the stocks in our
Jeff Clark Trader portfolio ever loses its “tradability” (which can happen for any
number of reasons, which I’ll describe to you if and when that occurs), we will remove
it and add a stock with a more attractive risk/reward setup.

And picking the right stocks is even less important in a bear market, like we’ve seen
recently.

Picking the right stocks matters more in a bull market, because not all stocks move
higher just because the broad market is moving higher. But, just about all stocks get
mauled by the bear.

In this environment, it’s easier, and often more profitable, to trade exchange-traded
funds (ETFs) – which hold a basket of stocks in a specific sector – rather than trading
individual company stocks.

After reading my example in the previous sections, it should come as no surprise that
the VanEck Vectors Gold Miners Fund (GDX) is the first stock in our blueprint. GDX is
constantly shifting directions and providing traders with lots of potentially profitable
opportunities. It provides broad exposure to the gold market, which is sure to be a big
mover in times like these.

The second stock in our blueprint is the Financial Select Sector Fund (XLF) –
which tracks the performance of the financial sector. XLF contains a wide array of
financial stocks like JP Morgan (JPM), Bank of America (BAC), Wells Fargo (WFC), and
Berkshire Hathaway (BRK.B).

Stocks like these tend to lead the broad market, both to the upside and downside.

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Naturally, XLF tends to follow these sorts of movies. Plus, with the recent precarious
state of the financial world… we’re sure to see a lot of volatile, tradable movement in
XLF.

That’s because a lot of the movement in financial stocks is dictated by the broad
state of the economy and monetary policy. What affects one big financial firm tends
to affect most of them, and the ripple effect can cause big moves in exchange-traded
funds like XLF.

The third stock in our retirement blueprint is the Technology Select Sector Fund
(XLK). Similar to XLF, this is an exchange-traded fund that tracks companies in the
technology sector. It contains names like Apple (AAPL), Microsoft (MSFT), Intel (INTC),
Cisco Systems (CSCO), and many more.

The technology market is especially ripe for trading right now because it’s carried
such a high valuation for so long. Many overvalued technology companies experience
dramatic price moves for any number of reasons – surprise earnings reports, supply
chain disruptions, and especially moves in the broad market.

Their large valuations are part of what make them so vulnerable, too. As the broad
market falls, investors who’ve held technology companies through the last bull
market are quick to sell their positions to secure their gains. This can further drive
the prices down in a panic-selloff environment – which we can take advantage of by
buying put options.

The opposite is also true… Technology stocks are often subject to “FOMO” or “fear of
missing out.” Technology companies are seen as the innovative movers and shakers
of the world. When a revolutionary new product or breakthrough is announced, it
often influences the entire industry. So, investors respond by flocking to technology
stocks in general – which can drive up the price of exchange-traded funds like XLK.

TYING IT ALL TOGETHER

As I wrote earlier, it’s easy to make money in the stock market – as long as you keep
things simple. Focusing on just three stocks, and using options to profit off of the
trends in those stocks, is a simple strategy. And it’s the one we’ll use each month in
Jeff Clark Trader.

It helped me retire at the age of 42. And, I expect it could be equally as profitable
for you as well. Keep an eye on your inbox for my next trade – due out on the third
Thursday of every month.

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 Best regards and good trading,

Jeff Clark

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