This post How to Strike It Rich in a Trade War appeared first on Daily Reckoning.

Today, I have another special issue of the Rich Life Roadmap.

My colleague (and university classmate!) Mike Burnick is sharing his third contribution to tell you about a big opportunity I can guarantee you don’t know about.

Using his knowledge and his idea, you may be able to set yourself up financially for life.

Read below to see what I’m talking about…

— Nilus

How to Strike It Rich in a Trade War

Dear Rich Lifer,

The trade war is far from over and there’s no telling where markets go from here.

One thing I DO know is my exclusive Amplified Income systems could score you a huge payday no matter how trade wars affect markets next.

Read on below to see how…

Winds of War… A Bull Market Buzzkill?

The winds of war — a deepening trade war — hang heavy over Wall Street.

Investors are starting to bail out on this bull market as a result…

The most obvious catalyst is the tit-for-tat escalation in the Trump administration’s expanding trade war.

To briefly recap: Washington’s opening bid targeted $50 billion worth of Chinese imports with tariffs of 25%. China responded with a $50 billion list of sanctions of its own on U.S. products.

Then Trump upped the ante, threatening import duties of 10% on another $200 billion of Chinese goods. And just for good measure, Trump raised the stakes again soon after, threatening another $200 billion worth of tariffs if China dared to match the first $200 billion in U.S. import duties.

But the real bull market buzzkill came with a one-two punch that landed squarely on the bull’s jaw.

The Trade War “Nuclear Option”

First, the European Union retaliated for previously announced U.S. tariffs on steel and aluminum with $3.3 billion worth of trade barriers on American imports.

Then it came to light that Washington may restrict Chinese investment in U.S. technology companies, which could have much deeper consequences for technological innovation on both sides of the Pacific.

That last item could prove to be the “nuclear option” in this escalating global trade war.

China can’t respond to our tariffs in kind because they simply don’t buy enough of our stuff.

Beijing’s only realistic option is to retaliate directly against American companies trying to compete in China.

Watch out for thinly veiled regulatory sanctions directed against U.S. companies operating in China.

Of course, China is a huge and fast-growing market that U.S. businesses are salivating over. Direct sanctions against U.S. companies doing business in China would imperil U.S. corporate sales and profit growth from one of our best customers.

Things are getting ugly, which is why stocks are under renewed selling pressure.

Investors are getting nervous about America’s escalating trade offensive against China, the European Union, Canada and Mexico… basically with ALL of our major trading partners.

Big-cap stocks in the Dow and S&P with big overseas sales like technology and industrial shares are getting crushed as a result.

That’s a sign that some investors believe corporate profits, and perhaps the economy itself, could be peaking.

And a full-blown trade war could tip us over the edge, perhaps into a premature recession.

Others believe that calmer heads will ultimately prevail, keeping the U.S. out of an all-out trade war with the rest of the world.

Too early to say for sure at this point, but there’s one thing you can do to limit your risk and even capitalize bigtime off this trade war.

What I’m about to share with you is a culmination of my life’s work of more than 30-years in the investment business.

It’s been a labor of love for me, a project in development for many years.

Now Amplified Income is ready for “prime time.”

But first let me show you a how exactly my systems works for outsized gains using a proven backtested example.

Your Trade War Insurance

It can be hard to grasp how options work — especially if you’re new to the world of stocks.

But there’s a good chance you already have a contract very similar to an option. I’m talking about car insurance.

You can think of buying options a bit like buying an insurance policy for your car.

Think about it: Car insurance pays out when your car gets damaged during your policy cycle.

Likewise, options pay out when a stock moves through a set price during the option’s life span.

Just like with car insurance, you pay a premium to purchase an option. If the option is likely to have to pay out, then the premium you pay is higher — just like trying to insure your teenage son to drive your Ferrari.

Alternatively, some traders prefer to sell options.

You see, there are two sides to every trade — a buyer and a seller. For you to buy a stock, someone must be willing to sell it. The same is true for options. If someone wants to buy a put or call option, there must be someone selling it.

Now, it may sound counterintuitive to sell something you don’t own. But don’t think of it like that. Instead, imagine you’re writing the options contract and then putting it up for sale. In fact, the act of selling puts and calls you don’t own is called “writing” options.

That doesn’t mean you literally need to provide a written contract to sell options. Instead, you just tell your broker what kind of option you want to sell and he’ll put it on the market in your name.

You’ll be paired with someone looking to buy that option, and the price the buyer pays for the option — the premium — will be deposited into your account.

You’ve just scored instant income — and that money is yours to keep regardless of what happens to the stock price.

And no how a trade war affects the markets you can still win big.

My Amplified Income system delivers you potentially massive paydays and provides your wealth the insurance it needs against the worst the market throws at you.

This system is the culmination of my life’s work.

I’ve developed the most unique combination of indicators and strategies around.

Additional, extensive backtesting has shown my …read more

From:: Daily Reckoning