Doc's first loser...

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(Top 10 all-time, highest-returning closed positions across all S&A portfolios)

A trade from Doc that you can make today...
 

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Doc's first loser... 'The only certainty is uncertainty'... Airports and roads... Visit with Porter in Nicaragua...

 Dr. David "Doc" Eifrig recently closed his first-ever losing position in Retirement Trader since launching the publication in 2010.

In three years, Doc recommended 136 consecutive winning trading positions... His 137th closed position – selling puts on utility company Exelon (EXC) – was the first loser. We'll get to the facts of this losing trade a bit later.

 Doc's winning streak shows how consistent and profitable his Retirement Trader strategy is... He sells covered calls and put options on high-quality companies, like Intel, Microsoft, and BP.

We've written loads of information on why selling puts is such a profitable strategy, so we won't focus on that today. (If you'd like to read up on the strategy, you can read the special Digest series we created here, here, here, here, and here.) Once you get comfortable with this type of trading (it's simple), you might never trade normal stocks again.

I personally use this strategy to generate thousands of dollars in profits every month – mostly building my trades around Doc's Retirement Trader philosophy.

There are two keys to successfully selling puts.

If you follow these two simple rules, it's hard to lose money.

 Back to Doc's losing position...

Honestly, we were almost relieved to see it happen. Skeptics questioned our credibility when we said Doc had closed yet another winning position. Every Digest we wrote praising Doc's performance – which is the greatest streak we've ever seen – was followed by hate mail and letters of disbelief.

 As a former Wall Street derivatives trader, a board-eligible eye surgeon, and now the editor of the ultrapopular Retirement Trader, Retirement Millionaire, and Income Intelligence advisories, Doc has always looked at the facts and ignored the hype.

That's why when he closed his first losing position, he went back and studied the trade to see his error. From the November 22 Retirement Trader...

These things, combined with natural gas dropping to historic lows – and staying there for longer than anyone anticipated – made Exelon's profits start to slow. And in late 2012, rumors circulated that the company was considering cutting its dividend. When it eventually happened in February, investors had already fled the stock. As Doc continued...

All things considered, Exelon actually performed well, given the things that happened to it. The company's real cash flow depended on government awareness, the weather, and new energy technologies. Stocks with steady, solid cash flow can absorb bad news, disaster, and changing market conditions without huge, volatile swings in the share price. That's why Exelon performed well, given the things that happened to it. Yes, the position was Doc's first loser... But it lost just 26.7% in about two years.

 As we noted yesterday, Doc still sees legs in this bull market (though he says we're closer to the end than the beginning). And Steve Sjuggerud believes we're in the "sixth inning" of the bull market. Both he and Doc are advising readers to stay long.

Sometimes, adding exposure to the market is difficult psychologically, especially when stocks are hitting all-time highs. That's one reason selling puts today is attractive...

It allows you to gain long exposure to the market while committing a fraction of the capital you would need if you took a full position. And the market doesn't even have to move higher for you to make big money... It can just sit still.

 We believe selling puts is one of the most important tools a trader can have in his arsenal. That's why we've praised the strategy for so long.

 In June, S&A Resource Report editor Matt Badiali found a way to benefit from the recent surge in U.S. natural gas supply. He recommended his readers buy fertilizer giant CF Industries (CF), one of the lowest-cost producers in the world.

Nitrogen is difficult to manufacture, and it's a critical plant nutrient. The cost of the fertilizer comes from the energy needed to remove it from the air. The company with the cheapest energy makes the most money. CF Industries has access to some of the cheapest natural gas in the world, right here in the U.S.

Last year, CF Industries raked in $3.1 billion in profits, with an astounding 51% profit margin. At the time of Matt's recommendation, its earnings paid for the entire company – including its debt – every three or so years. As you would expect, a dirt-cheap company with the ability to generate tons of cash attracted a major hedge fund.

Right around the same time S&A Resource Report readers bought CF Industries, Third Point hedge-fund founder and billionaire investor Dan Loeb bought in, too. In his 2013 letter to shareholders, Loeb wrote...

On Wednesday, CF Industries announced it's discussing changing its structure to a master limited partnership (MLP). That structure will allow it to pay corporate-tax-free dividends to shareholders.

As an MLP, CF Industries could pay out the much larger dividends Loeb wants to see. In today's market, even the possibility of higher yields gets noticed.

Shares of CF Industries rose 11%, its largest single-day move since going public in 2005. The company hit an all-time high. Matt's subscribers are up 30% in less than six months. He expects shares to continue to rise if CF Industries becomes an MLP.

 "We came in on horses... Now we're dealing with planes."

My friend Matt Turner, the head of our Rancho Santana property in Nicaragua, recently sent us an update on what's happening at the development.

When Porter, Matt, Steve Sjuggerud, and others first found this beachfront property on the Pacific coast of Nicaragua, they rode in on horseback... They had to cut their way through to the beach with machetes. They knew they had found something special.

But things have changed today... Matt recently sat down with one of the most important men in Nicaragua to discuss a major development...

This man told Matt an airport has been fast-tracked on a piece of land just miles from Rancho Santana. At first, the airport will have a passport office and accommodate 72-seat planes. The government will be heavily involved in the project... And eventually, they'll be able to land jumbo jets at the airport.

They're also working to extend the paved road all the way to the gates of Rancho Santana. The government is committed to making this strip of land along the coast Nicaragua's premier attraction... And it realizes the important role Rancho Santana plays.

 I've been visiting our property for nearly eight years... And the changes I've witnessed have been incredible.

More and more houses are being built. There's a beautiful new clubhouse with a conference center... And the new restaurant, La Finca y El Mar, is the best in the country, in my opinion.

The employees – many of whom have been there from the beginning – are proud of the development, and what they've helped achieve. And we provide them with English classes so they can better communicate with and accommodate the guests. These people take pride in their work.

 The only drawback to the improvements going on at Rancho Santana: It's becoming more and more difficult to reserve rooms...

Several big-time celebrities have started visiting the property. They come to relax and surf. The buzz is getting out...

Rancho Santana is hosting big events that book the entire property for days at a time. (That's partly why they're building a 17-room inn on the property.) They're actually turning away events now... and building another venue to host groups.

 Nicaragua is at a tipping point...

Doc Eifrig thinks it's a great place to get some money offshore and potentially retire. And people are catching on. Nicaragua has been on the front page of the Wall Street Journal, the New York Times, the Financial Times, Departures (the magazine for American Express platinum members), Delta Airlines' in-flight magazine, and Golf Magazine – to name a few.

They're all praising the country as the next major destination.

In five years, maybe less, the word will be out. But for now, Nicaragua still offers a great opportunity.

You can purchase beautiful lots for around $200,000... Comparable land in the United States would cost you seven figures. And the cost to build in Nicaragua is low... You can have a premium home for $100 per square foot. Plus, the construction is amazing.

 Because we're so bullish on Nicaragua, Porter and I are hosting a small group of readers at Rancho Santana from January 8-12. We try to take a group down every year to see the property and learn what investments are available.

It's a great opportunity to relax, play some golf, surf, enjoy the beach... and move some money offshore. (You don't have to report foreign property to the IRS.)

If you would like to join us, please e-mail Rancho Santana's Marc Brown at marcb@ranchosantana.com. Because we can only take a small group, we ask that only folks who are seriously interested in investing in the country join the trip. Marc makes the final decisions. Please put "S&A Trip" in your e-mail subject line.

Porter and I hope to see you next month...

 New 52-week highs (as of 12/4/13): DB X-Trackers Harvest China Fund (ASHR), CF Industries (CF), Energy Transfer Partners (ETP), Microsoft (MSFT), NVE (NVEC), ONEOK (OKE), ProShares Ultra Technology Fund (ROM), Constellation Brands (STZ), and Third Point Reinsurance (TPRE).

 "I just wanted to take a brief moment of your time to say Thank You for offering the open house, which led me to becoming a Flex Alliance member. I was able to access not only your vast research databases but also excellent training guides. I never thought of using options before I read all of Jeff Clark's 8 training guides. Now I've applied for a Margin and Options privileges from TDAmeritrade so I can both short stocks and use options.

"Even though I was initially hesitant about spending the $5401 to become a Flex Alliance member I now feel like it is the greatest investment I've made into myself-and I have yet to trade a single option.

"After I recoup the costs of this and gain enough to pay for the full Alliance membership, which is likely going up in price and understandably so, I intend to become a full long arm when the next opportunity arises.

"Lastly, PLEASE disregard any reader who tells you to change your methods or stick to macro issues or just recommend stock. If they cannot see the full benefit of what you provide – F**k em. Thank you for what you do and keep up the great work." – Paid-up subscriber Benjamin Schultz

Regards,

Sean Goldsmith
Miami Beach, Florida
December 5, 2013

A trade from Doc that you can make today...

 Dr. David "Doc" Eifrig recently closed his first-ever losing position in Retirement Trader since launching the publication in 2010.

In three years, Doc recommended 136 consecutive winning trading positions... His 137th closed position – selling puts on utility company Exelon (EXC) – was the first loser. We'll get to the facts of this losing trade a bit later.

 Doc's winning streak shows how consistent and profitable his Retirement Trader strategy is... He sells covered calls and put options on high-quality companies, like Intel, Microsoft, and BP.

We've written loads of information on why selling puts is such a profitable strategy, so we won't focus on that today. (If you'd like to read up on the strategy, you can read the special Digest series we created here, here, here, here, and here.) Once you get comfortable with this type of trading (it's simple), you might never trade normal stocks again.

I personally use this strategy to generate thousands of dollars in profits every month – mostly building my trades around Doc's Retirement Trader philosophy.

There are two keys to successfully selling puts.

If you follow these two simple rules, it's hard to lose money.

 Back to Doc's losing position...

Honestly, we were almost relieved to see it happen. Skeptics questioned our credibility when we said Doc had closed yet another winning position. Every Digest we wrote praising Doc's performance – which is the greatest streak we've ever seen – was followed by hate mail and letters of disbelief.

 As a former Wall Street derivatives trader, a board-eligible eye surgeon, and now the editor of the ultrapopular Retirement Trader, Retirement Millionaire, and Income Intelligence advisories, Doc has always looked at the facts and ignored the hype.

That's why when he closed his first losing position, he went back and studied the trade to see his error. From the November 22 Retirement Trader...

These things, combined with natural gas dropping to historic lows – and staying there for longer than anyone anticipated – made Exelon's profits start to slow. And in late 2012, rumors circulated that the company was considering cutting its dividend. When it eventually happened in February, investors had already fled the stock. As Doc continued...

All things considered, Exelon actually performed well, given the things that happened to it. The company's real cash flow depended on government awareness, the weather, and new energy technologies. Stocks with steady, solid cash flow can absorb bad news, disaster, and changing market conditions without huge, volatile swings in the share price. That's why Exelon performed well, given the things that happened to it. Yes, the position was Doc's first loser... But it lost just 26.7% in about two years.

 As we noted yesterday, Doc still sees legs in this bull market (though he says we're closer to the end than the beginning). And Steve Sjuggerud believes we're in the "sixth inning" of the bull market. Both he and Doc are advising readers to stay long.

Sometimes, adding exposure to the market is difficult psychologically, especially when stocks are hitting all-time highs. That's one reason selling puts today is attractive...

It allows you to gain long exposure to the market while committing a fraction of the capital you would need if you took a full position. And the market doesn't even have to move higher for you to make big money... It can just sit still.

 We believe selling puts is one of the most important tools a trader can have in his arsenal. That's why we've praised the strategy for so long.

 In June, S&A Resource Report editor Matt Badiali found a way to benefit from the recent surge in U.S. natural gas supply. He recommended his readers buy fertilizer giant CF Industries (CF), one of the lowest-cost producers in the world.

Nitrogen is difficult to manufacture, and it's a critical plant nutrient. The cost of the fertilizer comes from the energy needed to remove it from the air. The company with the cheapest energy makes the most money. CF Industries has access to some of the cheapest natural gas in the world, right here in the U.S.

Last year, CF Industries raked in $3.1 billion in profits, with an astounding 51% profit margin. At the time of Matt's recommendation, its earnings paid for the entire company – including its debt – every three or so years. As you would expect, a dirt-cheap company with the ability to generate tons of cash attracted a major hedge fund.

Right around the same time S&A Resource Report readers bought CF Industries, Third Point hedge-fund founder and billionaire investor Dan Loeb bought in, too. In his 2013 letter to shareholders, Loeb wrote...

On Wednesday, CF Industries announced it's discussing changing its structure to a master limited partnership (MLP). That structure will allow it to pay corporate-tax-free dividends to shareholders.

As an MLP, CF Industries could pay out the much larger dividends Loeb wants to see. In today's market, even the possibility of higher yields gets noticed.

Shares of CF Industries rose 11%, its largest single-day move since going public in 2005. The company hit an all-time high. Matt's subscribers are up 30% in less than six months. He expects shares to continue to rise if CF Industries becomes an MLP.

 "We came in on horses... Now we're dealing with planes."

My friend Matt Turner, the head of our Rancho Santana property in Nicaragua, recently sent us an update on what's happening at the development.

When Porter, Matt, Steve Sjuggerud, and others first found this beachfront property on the Pacific coast of Nicaragua, they rode in on horseback... They had to cut their way through to the beach with machetes. They knew they had found something special.

But things have changed today... Matt recently sat down with one of the most important men in Nicaragua to discuss a major development...

This man told Matt an airport has been fast-tracked on a piece of land just miles from Rancho Santana. At first, the airport will have a passport office and accommodate 72-seat planes. The government will be heavily involved in the project... And eventually, they'll be able to land jumbo jets at the airport.

They're also working to extend the paved road all the way to the gates of Rancho Santana. The government is committed to making this strip of land along the coast Nicaragua's premier attraction... And it realizes the important role Rancho Santana plays.

 I've been visiting our property for nearly eight years... And the changes I've witnessed have been incredible.

More and more houses are being built. There's a beautiful new clubhouse with a conference center... And the new restaurant, La Finca y El Mar, is the best in the country, in my opinion.

The employees – many of whom have been there from the beginning – are proud of the development, and what they've helped achieve. And we provide them with English classes so they can better communicate with and accommodate the guests. These people take pride in their work.

 The only drawback to the improvements going on at Rancho Santana: It's becoming more and more difficult to reserve rooms...

Several big-time celebrities have started visiting the property. They come to relax and surf. The buzz is getting out...

Rancho Santana is hosting big events that book the entire property for days at a time. (That's partly why they're building a 17-room inn on the property.) They're actually turning away events now... and building another venue to host groups.

 Nicaragua is at a tipping point...

Doc Eifrig thinks it's a great place to get some money offshore and potentially retire. And people are catching on. Nicaragua has been on the front page of the Wall Street Journal, the New York Times, the Financial Times, Departures (the magazine for American Express platinum members), Delta Airlines' in-flight magazine, and Golf Magazine – to name a few.

They're all praising the country as the next major destination.

In five years, maybe less, the word will be out. But for now, Nicaragua still offers a great opportunity.

You can purchase beautiful lots for around $200,000... Comparable land in the United States would cost you seven figures. And the cost to build in Nicaragua is low... You can have a premium home for $100 per square foot. Plus, the construction is amazing.

 Because we're so bullish on Nicaragua, Porter and I are hosting a small group of readers at Rancho Santana from January 8-12. We try to take a group down every year to see the property and learn what investments are available.

It's a great opportunity to relax, play some golf, surf, enjoy the beach... and move some money offshore. (You don't have to report foreign property to the IRS.)

If you would like to join us, please e-mail Rancho Santana's Marc Brown at marcb@ranchosantana.com. Because we can only take a small group, we ask that only folks who are seriously interested in investing in the country join the trip. Marc makes the final decisions. Please put "S&A Trip" in your e-mail subject line.

Porter and I hope to see you next month...

 New 52-week highs (as of 12/4/13): DB X-Trackers Harvest China Fund (ASHR), CF Industries (CF), Energy Transfer Partners (ETP), Microsoft (MSFT), NVE (NVEC), ONEOK (OKE), ProShares Ultra Technology Fund (ROM), Constellation Brands (STZ), and Third Point Reinsurance (TPRE).

 "I just wanted to take a brief moment of your time to say Thank You for offering the open house, which led me to becoming a Flex Alliance member. I was able to access not only your vast research databases but also excellent training guides. I never thought of using options before I read all of Jeff Clark's 8 training guides. Now I've applied for a Margin and Options privileges from TDAmeritrade so I can both short stocks and use options.

"Even though I was initially hesitant about spending the $5401 to become a Flex Alliance member I now feel like it is the greatest investment I've made into myself-and I have yet to trade a single option.

"After I recoup the costs of this and gain enough to pay for the full Alliance membership, which is likely going up in price and understandably so, I intend to become a full long arm when the next opportunity arises.

"Lastly, PLEASE disregard any reader who tells you to change your methods or stick to macro issues or just recommend stock. If they cannot see the full benefit of what you provide – F**k em. Thank you for what you do and keep up the great work." – Paid-up subscriber Benjamin Schultz

Regards,

Sean Goldsmith
Miami Beach, Florida
December 5, 2013

Editor's note: Today's Digest Premium features a trading idea from the November issue of Retirement Trader. Doc's team says you can still make this trade today...

 Oracle (Nasdaq: ORCL) is a $158 billion market cap technology company that provides database services and software to more than 380,000 companies... including all 100 members of the Fortune 100 (the financial magazine's annual listing of the largest American businesses by gross revenue).

That's one of the most attractive features of investing in Oracle. Its products are everywhere. And that gives the company long-term loyalty. It's expensive for Oracle clients to switch databases and software. You don't want to do it unless you're having major glitches.

As far as cash goes, Oracle has plenty of protection against the unseen future.

The company currently sits on $39 billion in cash – 24% of its market capitalization. And it generated around $6 billion in cash from operations last quarter.

In June, the company announced it would buy back $12 billion in shares. That essentially returns the money to shareholders. This is just a continuation of the $5 billion in buybacks that Oracle started in 2011.

Oracle undoubtedly fits Doc's description of a "Digital Utility."

In the early 20th century, consolidation of electricity providers led to monopoly-like positions for some firms around the U.S. Back then, the government allowed a few to remain and authorized "profits" for them.

In today's digital world, companies like Cisco (Nasdaq: CSCO), Intel (Nasdaq: INTC), and Microsoft (Nasdaq: MSFT) are similarly consolidating and moving to more utility-like positions of power.

That's why Doc calls these types of companies Digital Utilities... They have nearly guaranteed profits. If you're going to use the tools of our modern digital age, then you have no choice but to use these companies' products and services. (Try boycotting all Intel products, for instance. You can't easily do it.)

When a Digital Utility trades for just 11.5 times its free cash flow, like Oracle does now, it's hard to pass up.

 Out of fairness to Doc's Retirement Trader subscribers, we can't give away the exact details to the trade. He shows his paid readers exactly which strike prices and expiration months to use to create the trades he recommends. But he recommended selling just-out-of-the-money put options on Oracle that are set to expire next month.

If the markets remain unchanged at option-expiration day in January, Doc's readers are set to make $80 on a $680 investment... a return on margin of 11.8% in less than two months. If you executed this trade every two months – assuming prices remained the same – you could return more than 70% a year on margin.

 Of course, if his readers are "put" the shares in January, they will own ORCL shares at a net cost of $33.20. That's a nearly 5% discount to today's prices.

That's a huge amount of downside protection. Plus, if you become a shareholder, you'll also receive the $0.48-per-share annual dividend. You'll sit back and collect 3.7% cash on your investment in the first year. And you can turn around and sell call options against the stock to further boost your returns.

– Doc Eifrig with Sean Goldsmith

A trade from Doc that you can make today...

We like to give Digest Premium readers a little extra value. Today, we're sharing a trade Doc says you can make right now...

To continue reading, scroll down or click here.

Stansberry & Associates Top 10 Open Recommendations

(Top 10 highest-returning open positions across all S&A portfolios)

As of 12/04/2013

Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any S&A publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.