Zero Basis Trading (ZBT) revealed in detail w current trade position on QCOR.stock.

In this thread, you will be shown the methods and safety mechanisms of ZBT.
Its step-by-step.procedures r designed with 2 objectives:

1. Insure & protect.core.stock holdings from loss.
2. Make trade adjustments to bring in Income and Reduce Cost Basis.

Item 1 = “Return of your capital”
Item 2 = “Return on your capital”

Technically - you will be able to do it all yourself. But why bother? Save TIME instead.
Use TradingActionPatterns technologies to.alert you for entries, exits, adjustments!

If - after studying this QCOR story - and ONLY IF the story makes good sense to you -
then pls.feel free.to contact us ASAP for the new.opening trade slated for this week!

In any case - hopefully.at the very least you will learn something new from here.
Thank you for your time and attention!

For more info on ZBT and this wk’s new trads, pls PM here asap. Thank you.

Step 1 - find a Best-In-Class business (BIC) selling at significant “fire sale price”.

Key Assumptions:
A. Can find strong BIC business - liquid stock shares trading PLUS active options listed.
B. Strong BIC business is priced significantly below “Sticker Price” (SP).
C. We will have 4 equal-dollar allocations ready per new ZBT campaign.
D. Begin w 1st alloc on entry - add 2nd, 3rd, 4th allocs when price levels triggered.
E. If BIC share price declines but fundamentals stable - look to add (D) allocs.

For this ZBT study case - we will use comapny w symbol QCOR. Forum.members can readily
read & study on QCOR for details of its business operations & financial.results.

Step 1 - QCOR as strong Best-In-Class business selling at discount.

Details & analysis of QCOR’s business model avail elsewhere. Suffice to say it.holds major
lead and has applications in the marketplace already. High costs.of.basic science research
PLUS expense of clinical trials create a “Moat” against strong competition.

Valuation & Financial Performance Metrics
1. Past avg Price/Earnings (P/E) ratio was 32.9 = high b/c QCOR has rapid growth rates.
2. Current P/E = 12.8.  Reduced b/c stock price decline but w/o serious chgs in business.
3. Stock price at entry = $50.00.  Date was 1/9/2014.
4. Earnings per Share (EPS) = $4.31 (trailing 12 mos).
5. Sales, EPS annualized growth rates past 5 yrs 28.5%, 32.5% respectively.
6. Fwd.5 yr est growth rate = 31%.
7. Consensus analysts 5 yr growth rate (EPS) = 30%.
8. Debt zero!
9. Management metrics: ROE 105.3%, ROA 57.8%, ROIC 121.7%.  All very strong.

For ZBT calculations - ultra conservative: use EPS growth rate 20% annually, P/E 12.8.

ZBT algorithm Sticker Price.= $84.45

QCOR current price = $50.00 = 59% of Sticker Price!  Excellent bargain for BIC business!

QCOR stock price volatility = 72% = stock price can be +/- 72% or more next 12 mos!

Using volatility of 72% - ZBT will add equal $ allocs every 18% lower in stock price.

This ends the Step 1 “story” for QCOR - a solid BIC business on sale at 59% Sticker Price.
Sticker Price = $84.45 vs Entry stock price at $50.00

Pls note - there is will be no debate on growth rate or P/E.or valuation method used here.
It is whatever used in the ZBT algorithm.

Addendum to Step 1

Of course, you can perform your preferred business valuation methodology.

There are many well-published valuation methods: Buffet, Graham, Dreman,
Cramer, Lynch, Town, Vector Vest, Value Line, etc.

Sticker Price may be widely varied - JUST BE CONSISTENT.

The ZBT business valuation method is based on Phil Town’s Rule #1 methods.

You can find details,.assumptions, logic, to the Rule #1 approach. Using ZBT,
TradingActionPatterns (TAPs) has analyzed and accepted the ZBT algorithm.

Step 2 = buy BIC shares “on sale”.  Then buy insurance put options.  Calculate Cost Basis.
Calculate temporary Risk.

Note - ZBT uses precise options of varying strike price, and varying durations/expiry.

It is beyond scope here to disclose options selected.in the ZBT algorithm.

Plan:
A. Buy at $50.  Exit at Stkcker Price area $80-$85 zone.
B. Add allocations if/when QCOR stock declines.every $9 (18% of $50).

1/9/2014

Buy to Open QCOR 100 sh @ $50 = (-$5000).

Insurance: Buy to Open April $55 Put @ $11.50 (-$1150)

Setup Alloc 2 level:  Sell to Open April $40 Put @ $4.20 (+$420)

Total Cost Basis = (-$57.30) per share.

Insured at $55.  Risk = (-$2.30).  Note this is really max Risk and very temporary!

Total risk = $2.30/$57.30 = 4.01% max risk thru April expiry.

Step 3 - manage stock price volatility & make trade adjustments.

Note - ZBT does not provide specific instructions on trade adjustments. Different
traders have different risk/return tolerances!  ZBT algorithm was programmed to
make adjustments to reduce Cost Basis as its Top Priority!  Secondary priority is
to sell call options at key resistance price zones, AND, sell put options at key
support price zones, as these zones are being tested by the current.stock price.

1/17/2014

QCOR stock hits $59+ near closing.  ZBT algorithm triggered trade adjs below:

1. Chg insurance protection level as QCOR moved up.+18% from buy-in.

Buy to close Apr $40 Put @ (-$2.75)

Sell to close Apr $55 Put @ (+$6.50)

2. New insurance:

Buy to open Jan.$60 Put @ (-$2.45).  Note this is Jan expiry - ready to exit trade.

3. Sell call option at key resistance price zone $58 - $60.

Sell to open.Jan $62.50.Call @ (+$0.60).  Will expire 1 wk, but get 1% yield!

Sum up total of all trades = credit of (+$1.90). Prev Cost Basis (-$57.30)

New Cost Basis (-$55.40).  Insurance Put guarantees minimum $60 sell price.

Now minimum profit guaranteed (+$4.60) or (+8%) ROI so far.

Stll one wk to go.

Stay tuned for this wk’s adjs.

Thank you.

Summary QCOR trade w ZBT:

1. Init max Risk (-4%). Very small & temporary Risk.
2. QCOR up +18% from buy price.
3. ZBT adjs locked minimum profit (+8%) so far!  Already 2x Risk.

With one wk to go, profits can certainly increase.

ZBT results will UNDERPERFORM against all stock price moves that go straight
and immediately up.

But - ZBT priority is.Protect Capital, then look to reduce Cost Basis, and accrue
Profits thru trade adjs.

Does this style of “No risk” trading make.sense.to you?
Does this style FEEL right to you?

You do not need to know options trading - only how to correctly place.stock &
options trade orders when ZBT Alerts sent direct to u.via SMS/text or email.

Not even any need to login to a website to check for Alerts.  ZBT sends it actively
& direct to you to minimize delays and errors.

Can also work with some auto brokers - have to verify per case basis.

Thank you.

Yes - lots to digest.  But, TAPs wanted to give RF members detailed insights &
transparency into its premiere ZBT algorithm.

Your turn - questions?

This wk already have another BIC business ready for ZBT campaign.

Pls PM here if interested in next ZBT this wk.  Thank you.

QCOR up strongly today hitting $63+.

Currently the Jan call options have spreads too wide. Best to hold all positions.

See if can remain above $62.50 thru expiry Fri.

If yes, will give another $3 in additional profits.

Three more days to go….

Greetings, RF members & investors,

QCOR continued strong upside momentum. Today it closed
at the $63.80 level.

The short Jan $62.50 calls are in the money rt now. It means
on expiry Fri close, if QCOR > $62.50, then our stock will be
called away and the campaign ends.

In the mean while the insurance part of ZBT was changed
today - moved up from the $60 level to the new $62 level:

Sold to close Jan $60 Put @ (+$0.20)
Buy to open Jan $62 Put @ (-$0.60)
Net for adj = (-$0.40) debit.

New Cost Basis = (-$55.40) + (-$0.40) = (-$55.80)

Guaranteed Sell @ $62.00 level from Jan $62 Put if QCOR dropsdrops
back dn

< $62.50 price level.

Rt now guaranteed sell at $62.50 b/c short $62.50 call will set
exit price if QCOR >

$62.50 at expiry Friday close.

Again, with No Risk of Loss! All done within 2 wks!

Still 2 more days to follow. Thx!

Going into the closing few mins Thus 1/23/14….

QCOR v strong past $64.70 w upside momentum!

Key Strategic Question:  end trading on QCOR this wk?
Or - cont to hold QCOR & make adjs while still strong
upside momentum?

Answer:  QCOR was purchased significantly below its
Intrinsic Value (estimated at $84.45). Therefore, will
continue to hold & adj for now.

Caveat:  this means we will have to roll into Feb options!

New Plan:
1. QCOR > insurance protection at $62. Have to move up
insurance put options to $65.
2. Have to exit short Jan 62.5 Call - so have to roll
“up and out” to Feb $65 Call.

Adjustments:
1. Used a SPREAD ORDER for better price fills esp when
so close to expiry Friday!

    Sell to close Jan$62 Put
    Buy to open Jan $65 Put
 
Spread filled (-$0.40) - adjusted Cost Basis (-$56.20)

2. Used SPREAD ORDER:

    Buy to close Jan $62.5 Call
    Sell to open Feb $65 Call

Spread filled (-$0.75) - adjusted Cost Basis (-$56.95)

Insurance guaranteed sell = ($65)

Minimum guaranteed profit = (+$8.05)
Original Cost Basis = $57.30

Minimum profit ROI = (+14.05%) in 2 wks.

Caveat: will go into 3rd week! Fridaay close will have to
roll Jan$65 Put to Feb - but waiting to see Fri action!

General rule = continue w trading campaign as long as
QCOR continues to rise - AND - we are able to keep
receiving at least (+1%) PER WEEK.

Now will go into 3rd.wk starting next wk w guaranteed
minimum ROI of (+14%)!

Thx.

Greetinga RF members,

Sorry for delayed posts past wknd. On travels thru Hong Kong and Bangkok. Tiring!

Let’s recap Fri last wk on QCOR. It had run up strongly and moved to $64.70 zone.
The Jan $65 put had to be rolled to Feb b/c we wanted to see if QCOR can run up more.
So here was the put option roll:

    Sold to close Jan $65 put
    Bought to open Feb (22nd) $65 Put option

    Net debit = (-$2.30)
    Adjusted Cost Basis = (-$59.25)
    Guaranteed Sell = +$65

    Minimum profit = (+$5.75)

We decreased profits only TEMPORARILY in order to buy insurance thru Feb 22nd. There
will be more adjs to raise profits again soon.

Rt now, time for patience and let QCOR go to key support or resistance zone.

More soon.  Thank u.

QCOR ran up past $66.75 - requiring adjustments in both calls and puts.

Last Adjusted Cost Basis = (-$59.25)

    Sell to close Feb(22nd)$65 Put = $2.85 x $3.50
    Buy to open Feb(2wnd)$67.5 Put = $4.00 x $4.70
    Net debit = (-$1.45)

In addition the short Feb(7th)$65 Call is now in-the-money. It also had to be rolled up.

    Buy to close Feb(7th) $65 Call = 1.45 x 3.70
    Sell to open Feb(22nd) $67.50 Call = 3.00 x 3.60
    Net credit = (+$0.25)

New Adjusted Cost Basis = (-$59.25) - ($1.45) + ($0.25) = (-$60.45)
Guaranteed Sell = $67.50
Minimum profit = (+$7.05)

Now stand aside and let QCOR do whatever it will, ZBT will adj with QCOR.

Thanks.  (Note: this post edited and corrected 2/4/2014)

RF members, QCOR has weakened - now at $63.71.

The ZBT algorithm indicates more QCOR weakening - so not much to do now.

Here is the current QCOR total position update:

    Long QCOR stock originally purchased at (-$50.00). Current = $63.71.
    Long Feb(22nd)$67.50 Put - current = $5.20 x $6.00.
    Short Feb(22nd)$67.50 Call- current = $1.30 x $1.35

Last Adjusted Cost Basis = (-$60.45)
Minimum Guaranteed Sell = (+$67.50)

Let’s watch & wait - see if we can get > 90% of the max credit of the short Feb(22nd)$67.50 Call.

We want to find Key Support - and then adjust again, and exploit the next trend upside move.

Zero Basis Trading is analogous to a wrench ratchet:

    Asset price moves up, profits are locked up.
    (Wrench clockwise tightens up the bolt)

    Asset price declines, no harm done - Cost Basis same - wait for next run up.
    (Wrench counter-clockwise, ratchet released - allows reset wrench position)

Again, ZBT trading = down moves neutral, up moves lock up profits!

Does this style of trading make sense to you? Does it “feel right” for you?
ZBT long/short trading is powerful! It has one of the highest Risk-Adjusted Return profile
amongst ALL investment strategies!

If ZBT is making sense for you, and, ZBT “feels right” for you - you may want to join and
profit alongside with us! Currently there will be 2 new ZBT campaigns this week!

Just PM here and join the fun!  Thank you.

QCOR update:

Here is the current QCOR total position update:

Long QCOR shares. Current = $65.81

Long Feb(22nd)$67.50 Put. Current = $3.20 - $4.00

Short Feb(22nd)$67.50 Call- current = $1.35 - $1.75

Last Adjusted Cost Basis = (-$60.45)
Minimum Guaranteed Sell = (+$67.50)

Daily chart has Key Resistance @ $68, then $70.
Price > 50, 200 days MAs.

Weekly chart has Key Resistance @ $75.
There is MACD Bearish Divergence.
However momentum still up:  Fast Line up and > Slow Line.

With 2 weeks to go, it may remain in the current trading range.

Plan:  No new adjustments.

ToQCOR conts w upside strength:

QCOR = $69.68

Feb(22nd) $67.50 Call = $3.20 - $3.90

Feb(22nd) $67.50 Put = $1.00 - $1.50

Note: the.Feb(22nd) $67.50 Call still has about ($1.50) time value.
There is an argument to HOLD as is.

However, the ZBT algorithm was designed to GO w price momentum.
Hence the ZBT machine initiated this roll:

Buy to Close Feb(22nd) $67.50 Call @ $3.67
Sell to Open Feb(22nd) $70 Call @ $1.98 (all time value)
Net debit = (-$1.69)

Adj Cost Basis = (-$60.45) + (-$1.69) = (-$62.14)

Guaranteed Sell = ($67.50)

Consider another Call adj if QCOR > $71.

More soon….