AIM for Millions with Stock Options: The Safe and Scientific Method to Profitable Investing with Long Term Stock Options (LEAPS)

DEDICATION

To my wonderful honey – bunny (alias lovely wife Judy) who has always been there for me and always will be there for me.

Of course I can't ignore my wonderful wife Judy; again she rates more than just being listed in the dedication. My wonderful wife Judy has been there every step of the way for me and helped me through many dark and difficult times. I truly appreciate all the fine things she's done for me, the love she has for me, the love she has for our daughter, granddaughter and now grandson Julian, and the hard work she does.  I want to give her the best possible life.

TABLE OF CONTENTS

DEDICATION

TABLE OF CONTENTS

SPECIAL ACKNOWLEDGEMENT TO THE CREATOR OF AIM: Robert Lichello

FORWARD

INTRODUCTION

CHAPTER 1 - Stock Options 101

CHAPTER 2 - Why AIM + LEAPS + FAANGS Is The Magic Combination

CHAPTER 3 - AIM for Wealthy Investors

CHAPTER 4 - Why and How to Use 50% CASH With AIM

CHAPTER 5 - FAANG + LEAPS: Proof They Work

CHAPTER 6 - The Mechanics of AIM Trades with LEAPS

CHAPTER 7 - How to Trade Automatically With AIM

CHAPTER 8 - Major Objections to AIM With LEAPS (And My Responses)

CHAPTER 9 - Special Cases With AIM Investing

CHAPTER 10 (BONUS) - Sample Newsletter from JJJ Investing Services

APPENDIX - What Clients Get from JJJ Investing Services

ABOUT THE AUTHOR

SPECIAL ACKNOWLEDGEMENT TO THE CREATOR OF AIM: Robert Lichello

I would like to thank and compliment Mr. Robert Lichello, author of How to Make $1,000,000 in the Stock Market Automatically. In 1977, the first edition of that book was published. He devised the investment method I have taken to the next level in the following pages. I'm sure any good bookstore will have a copy or you could order a copy by looking on Amazon or one of the other websites. Mr. L's book planted a seed of inspiration to me like no other investment book I had ever read. I knew it was the right way to invest. It so inspired me that I started investing with the method and started telling other people about it through my own books, newsletter, and website. He has helped lots of people and I hope I am worthy to carry on in his footsteps.

At the time I first read his book, the stock market was going great guns in the middle of a big bull market. The year was 1985. I started charting stocks I liked under the system to see how well the strategy worked on real stocks. From those humble beginnings, my story with AIM began. The story continued under strange conditions about as far away as you can get from the major stock markets – in Seoul, Korea; Maffle, Belgium; and Weilerbach, Germany. It was in those countries where I was stationed by the Army where I continued to learn, invest, and teach what I learned about the AIM method. The beauty of AIM is that it doesn't even require you to be near the market to play. It's so simple and yet so profitable. My hat is off to Mr. Lichello. I hope this book helps spread his fine method to an even wider audience.

I wish to make clear that while the method is Mr. Lichello's, the ideas about using it in this book are my own. If you can think of some way to improve on my ideas, I'd be glad to give you credit in a future edition. Or your praise may go to all my subscribers in my monthly investing newsletter that has readers all over the world. People who have been with me for many of the past 20+ years have seen a lot of fellow subscribers mentioned over time.  

I've come full circle starting with a large printed book made 33 years ago that I've been revising constantly to this book you are reading now. I've added information on how to adapt Automatic Investment Management (AIM) for bear markets, how to invest with FAANGs (Facebook, Alphabet, Apple, Netflix, and Google), and the biggest objections or fears to using AIM with options. LEAPS are actually the safest and best AIM investments for investors. But the heart of the book remains the same because it comes from a strong foundation—capable of handling the job AIM provides in bull markets and in bear times.

Anybody who buys this book can e-mail me and will receive for free the full length and full size 8.5 x 11 350-page PDF version of my original book on AIM investing. Once you buy this book, just e-mail me at [email protected] and tell me you have bought this book. I will be very happy to send you my original book PDF file to you at no charge.

As additional thanks, you will receive a complimentary limited-time free look subscription to my monthly investing newsletter (a $150 annual value).

FORWARD

Psychology and Emotion in Investing

By R. Jay Hamer, Ph.D., Psychology

Investing money in institutions over which we have little control can be scary.  It pokes at our most basic needs for security, safety, and protection.  As a result, the markets are often driven more by emotion and emotional reactivity than objective fact.

Is this bad for the AIM investor?  Absolutely not.  And in fact, as you become familiar with this investment approach, you will realize that over-reactivity and emotionality of other investors is your best friend, and one of the keys to your future success.  AIM provides objective, rational direction for your investments amid the chaos of the markets.  Most investors see radical drops in stock prices and panic, selling equities out of fear, which causes prices to drop further.

The wonderful AIM approach to investing counsels us otherwise.  While it feels good to make profits and increase available cash, the brilliance of AIM teaches us that what others view through the lens of fear, we view through the lens of opportunity.  When market prices drop, we have the opportunity to buy at bargain prices, and then wait for the inevitable turn-around.  AIM quite literally is the formula for following a contrarian approach to investment, being bold when others are fearful, and being cautious when others are driven by inappropriate greed.

If you have tried investing before and experienced anxiety or even outright fear, AIM is the firm, consistent, steady voice that says, don’t worry, I’ll make the decisions for you...relax.  This system of investment has been back-tested and validated many times by many people.  If you have the discipline to stay grounded and remain patient, you will be rewarded handsomely.  The real enemy of investors is not market behavior or financial trends.  The enemies are twofold, and their names are Fear and Greed.  If you follow the advice of this book and the author, not only will you avoid the enemies, you will take advantage of all the investors that are motivated by them.  Reactivity and market volatility will become your friends.

The interesting thing about investing is that, at a deeper level, it teaches you about the fundamental nature of life.  Everything and everyone has cycles of expansion and contraction.  When you can see these cycles as natural, you can calmly make investment decisions driven by the wisdom of AIM.  As you do so, observe human nature as displayed by other investors who are following a herd mentality.  They slap negative, scary, or dramatic labels on market trends (such as bear market), and their decisions reflect the emotions generated by those labels.  As AIM investors, we of course enjoy seeing our profits increase, but we also have the wisdom to see market fluctuations simply as the fuel for the AIM engine, and to see market drops as an opportunity do bargain shopping.

So learn about life by watching the market cycles, and learn how to invest wisely and profitably by carefully studying this book.  Better yet, study the book and work with Jeff personally.  He’s truly an AIM genius, and has incredible patience with those of us (like me) who start investing with little or no experience.  Bonus—Jeff has an amazing sense of humor as well!  I’m not sure I’ve ever had an investment conversation with him in which he didn’t get me to lighten up and laugh a little—or a lot.

Happy, joyful, and profitable investing to you!

Jay Hamer, Ph.D.

Albany, New York, USA

June 1, 2019

INTRODUCTION

I wrote this book to help all investors – big and small – make money. This simple, easy to learn method will show you an investment method you can use for your entire life.

There are some details I cover in my other books or monthly newsletter such as how to choose a stockbroker for buying and selling under the AIM method. To help you pick the best stocks if you are just starting with AIM I recommend you read my previous book, Here Are the Customers’ Yachts. In that book I explain the methodology. In my monthly newsletter I give my short list of best buy and good start stocks that are the best I see for that month. Since you have purchased this book, read through to the end for a special offer to get a free look subscription to my one-of-a-kind monthly investing newsletter.

Please read the entire book and I think you'll agree that I offer a simple, easy to learn, quick method to make the most profits from your hard-earned investment dollars. A note on the examples – some of them use data from a few years ago. These are historical cases that illustrate particular points about investing with AIM. They are timeless lessons that you can