What risk tolerance is needed for Precision Profits?

Precision Profits is for risk-tolerant investors who are able to stomach losing 100% on some trades. We don’t frequently lose that. But more often than not, if a position is a loser, it’s a 100% loser — and that’s on purpose. We generally hold positions to the bitter end because on more than one occasion we’ve seen a position that is down sharply in the final days of trading quickly reverse course and give us a profit. We will gladly take a few 100% losers when we have a long string of 100%, 150%, 200% or more gains.

The 100% losers are part of the game when it comes to options. And our strategy has shown time and again that we can easily absorb those when we’re cranking out such large gains elsewhere over and over again.