No Lose Stocks highlights dividend stock and put option combinations that have a very strictly limited downside, while leaving as much upside as possible. The intent of the service is to find opportunities to invest that offer the possibility of large gains, with the certainty of limited losses.

How it works

The dividend from the stock covers the cost of the put option. And the put option’s strike price is high enough that there will be no loss of the initial investment if the put option is exercised.

If the price of the dividend stock goes up, the profit on an investment using this strategy will not be as high as an investment in the stock only. So if the dividend stock goes up 50% from where you purchased it, do not expect to make 50% on the invested money. Your profit will be closer to 30% or 40%. However, if the dividend stock goes down 50% from where you purchased it, do expect to get all of your initial investment back.

Since the gyrations of the stock market are due mostly to chance and unpredictable events, it makes sense to strictly limit the exposure to losses caused by chance, and to try to get as much exposure to profits caused by chance.

The only risk of loss in this strategy is that the stock’s dividend will be cut. If that happens then the investment may produce a loss of at maximum the amount of the dividend cut. So if you expected a dividend of $1.50 per share over the life of the investment and the dividend was cut by $0.45 to $1.05 per share. Then, if the stock does fall in value, the most you would lose would be $0.45 per share. If the stock goes up you may not have any loss at all.

Some of the articles on this site may be helpful in explaining the ideas behind the strategy further:

How can we invest while avoiding losses?
What is a put option?
How should you invest your 401k?
What about IRA penalties?
How many histories are there?

Data delivery

Data is delivered every day after the close of the market via an email from contact@dividendium.com. The data is also available via the website if you login with your PayPal email address. The email will contain a link to the data on the website and in spreadsheet (comma separated values) format to allow maximum sorting and parsing. The emails are archived on the website, so subscribers always have access to the previous spreadsheets if they want to view them for backtesting or other research.

How to subscribe

To subscribe to No Lose Stocks, enter your email address and click the "Sign Up" button below. If you're already logged in, no email is required, just click "Sign Up".

This will start a 60 day free trial, so you can decide if No Lose Stocks fits your personal investing style. If you decide to subscribe after the 60 day free trial, it's $14.95/month. If not, you can cancel via the cancel link in the daily email, or by emailing contact@dividendium.com.

Immediately after subscribing you will be taken to the current day’s data on the website and can login with your email address. You’ll also receive an email with the most recent data.

Summary

No Lose Stocks is not a high-flying options trading service. You shouldn’t expect to make hundreds of percent gains in less than a week. What you should expect is never to see the value of your portfolio go down, never to have to tell your spouse how much you lost, and never to have to postpone or come out of retirement because you lost too much money in the most recent down turn.

And if a large pop in the market does happen, you should expect to get a piece of that too. You won’t get as large a percentage as other investors who are taking much greater risks, but since you didn’t lose as much money as they did in the last down turn, you get those smaller gains on a larger investment, which may even things out.

When other investors are crying about having lost half their money, you’ll still have all of yours.