Dear Investor,

Recently, I announced the debut of Cabot’s newest investment advisory, Cabot Options Trader.

As the title suggests, its focus will be options.

But there are many ways of using options, so before you get the wrong idea, let me explain.

Cabot Options Trader is designed for investors who want to make quick profits while leveraging their investments.

It’s not about buying “protection” for your existing equity holdings, and it’s not about adding leverage to stocks that Cabot is already bullish on.

No, Cabot Options Trader will recommend trading on both the upside and the downside, respecting that the market moves in cycles, and that when the rubber band has been stretched too far in one direction, it’s natural--and actually predictable!--that it will go the other way for a while.

It’s about trading over the short-term; the average holding period is 15 trading days.

It’s about jumping on new opportunities when they present themselves.

And it’s about taking profits quickly and sitting safely in cash when there are no great opportunities.

Now, if you’re a beginner in the business of investing, I want to caution you; Cabot Options Trader is probably not right for you. I think most people need a solid grounding in the basics before they venture into the active world of options trading.

But if you’re an experienced, confident investor …

If you know how to cut losses short …

And above all if you’re one of the many Cabot subscribers who’ve asked us to develop an options trading advisory …

I think Cabot Options Trader can help you achieve your investment goals.

So let me tell you more.

The editor of Cabot Options Trader is Rick D. Pendergraft.

Rick’s an experienced investment adviser, having learned the trade at two other investment institutions before joining the Cabot team.

He knows how to trade.

He knows how to write.

And best of all he knows how to learn.

In fact, my judgment of Rick is that he’s a true “student of the market,” and that’s the highest compliment I can give someone in this business.

He knows the market is always trying to fool the majority.

He knows there’s no value in trying to predict what the market will do.

But he knows that by watching the market carefully, and interpreting its signals intelligently, he can make high-probability bets that pay off at an amazingly high rate.

Like all students of the market, Rick has a system. He developed it through years of study and experimentation. The specifics of it are proprietary.

But I can tell you the outline of it, and if makes sense to you, I hope you’ll join me as a Charter Subscriber to Cabot Options Trader.

For starters, Rick looks at the broad market. Like all students of the market, he knows there’s little sense trying to invest against the prevailing trends.

He knows a rising tide floats all boats, and he knows a storm sinks most of them. He takes care to invest primarily in synch with the market’s most likely short-term trend. This trend is clearly depicted in each issue of Cabot Options Trader as the Cabot Options Trader Market Barometer.

This indicator’s three strongest readings in 2009 (before Rick joined the Cabot team) were on March 5, July 10 and November 2, all great times to be buying.

Also last year, the Cabot Options Trader Market Barometer predicted the pullbacks of June and October.

This year, the barometer was exceedingly bullish in February, as the market correction ended, and it was very bearish going into the May correction. Most recently, it was extremely bullish right after the 1,000-point Flash Crash on May 6.

In short, the Cabot Options Trader Market Barometer has a strong track record of successfully forecasting the market’s short-term trend. And that puts the odds strongly in your favor.

After determining the state of the market environment, Rick investigates the movements of individual stocks, looking for patterns. As you know, stocks tend to move in waves … up, down, up, down and up. Rick’s goal is to enter at the turning points of these waves, and his software actually provides precise buy and sell signals, so every day he has a list of opportunities to choose from.

Finally--and I think this is pretty neat--he looks at how these stocks have done after previous signals from his system, and recommends those that have had the best record of success with this system!

Early this year, we spent months watching the performance of Rick’s system in real time, to ensure that it worked as well as he described it … and I’ve got to say, we were impressed! Consider these examples:

Example #1

On April 5, Rick recommended buying the May 48 Strike Put on ArcelorMittal (MT), explaining, “ArcelorMittal appeared o n my bearish scan the other night and it has yet to react. MT has made 15 previous appearances on the scans, 13 of those signals have gone the right way over the following 15-day period. With the 15-day time frame in mind, the April options will be close to expiring. I recommend going out to the May expiration and I like the 48 strike.”

Well, two weeks after that recommendation, Rick was looking at a profit of 56%. When he closed it out after 17 days, just as the system advised, his profit was 97%!

Example #2

On April 12, Rick recommended the May 35 Strike Put on Plains Exploration, saying, “Plains Exploration (PXP) is overbought and facing resistance. The stock was on my bearish scan Friday night and this stock has been a solid performer when it appears on the lists. There have been 15 previous signals and 13 of these signals have produced gains over the next 15 days, regardless of whether it was a bullish signal or a bearish signal.”

Eighteen days later, on April 30, Rick recommended closing out Plains Exploration (PXP) with a 104% profit!

Example #3

On April 19, Rick recommended the May 27 Strike Put on Novellus Systems, writing, “Novellus (NVLS) appeared on the bearish list Friday night and warrants our attention. Over the last 15 months or so, NVLS has appeared on my scans 12 times and in 10 instances the stock moved in the right direction. The stock is overbought on the daily, weekly and monthly levels and it is facing resistance at the 100-month moving average.”

On May 7, 18 days later, Rick recommended closing the trade, for a gain of 131%!

Admittedly, there have been losses, too, but that’s true of all good investing systems. The trick is keeping the average loss small, and keeping the ratio of wins to losses substantially above 1-to-1.

I promise you, Rick Pendergraft’s system has done that.

It’s bought calls, to benefit from market upswings. It’s bought puts, to benefit from market downswings. And it’s exited both types of positions at the appropriate time, always following the system, being smart, but not greedy.

After all, as a student of the market, Rick is well aware of the dictum, “Bulls make money, bears make money, but pigs get slaughtered.”

So if you’re looking for a trading system that can help you profit from the market’s ups AND downs …

If you’re looking for a trading system that will bring profits quickly, while minimizing losses …

And if you’re looking for an easy-to-follow trading system that requires only a modest commitment of funds … I suggest Cabot Options Trader is exactly what you need.

As a subscriber, you’ll receive two well-researched, high-probability options trading recommendations most every week, except on the rare occasion when Rick deems it more prudent to do nothing.

You’ll be told when to close out each trade too, with email alerts between regular issues.

And you’ll get regular weekly coverage of all open positions, so you can stay in synch with Rick’s thinking at all times.

Now, I know that there are options trading systems out there that cost thousands of dollars, and my judgment is that Rick’s system is better than most of them. But I like to price Cabot’s products fairly, to allow more investors the opportunity to benefit from our good advice.

So, to kick off the launch of this newsletter properly, I’m offering a Charter Subscriber Rate of $497 for one year, saving you a massive $498 off the regular price of $995 per year.

Plus, there’s more.

With your paid subscription I’ll also send you “How to Use Cabot Options Trader,” a no-nonsense guide to the service that will answer any questions you might have … and some you’ve never thought of.

I’ll also send you “10 Secrets of Options Investing,” by Rick Pendergraft.

One of the secrets--and this will come as no surprise to experienced growth stock investors--is #7, which says, “Trade What You SEE. …You can get so involved in the market that you feel that you know for certain what’s going to happen. There are times when you are going to be right, but nobody’s right all the time. Your best bet is to avoid believing your own opinions and trade what you SEE happening.”

It’s a practice I agree with thoroughly, a key reason for the success of ALL our Cabot growth-oriented publications, and a key reason that I know Cabot Options Trader will be a very profitable guide for the subscribers who choose to follow it.

Take this opportunity to become a Charter Subscriber to Cabot Options Trader, and start making money from the market’s ups AND downs.

Sincerely,

Timothy Lutts

P.S. Your subscription to Cabot Options Trader comes with my 100% satisfaction guarantee. Try Cabot Options Trader risk free for the next 60 days. If you're not completely satisfied with the recommendations, just let me know. I'll send you a complete refund, no questions asked. Try Cabot Options Trader today; you've got nothing to lose and everything to gain.