Jeff Clark recently released a video where he teased a so-called “3-second financial maneuver” involving bitcoin options, which he claims makes it possible to “generate 10x gains or more from Bitcoin,” whether the price is going up or down.
There seem to be a couple of different versions of this presentation floating around, but the one I saw was dubbed, The 3-Second Bitcoin “Flip Trade.”
The presentation began with Jeff Clark standing outside the Miami Beach Convention Center during the Bitcoin 2022 Conference, saying he’s going to “conduct a wild Bitcoin experiment” to see if he can make more money from bitcoin than the “crypto enthusiasts” in Miami.
“In just a moment, I’m going to take you inside that building…
Where I’m going to conduct a wild Bitcoin experiment.
Specifically, I’m going to test out a simple, but little-known crypto move…
And see if I can make 3 times… 5 times… even 10 times more money from Bitcoin… than any of the crypto enthusiasts flocking to Miami right now.
In fact, using this unusual crypto move, it’s possible to make a profit even when Bitcoin goes down…”
According to Jeff Clark, the “little-known crypto move” he’s teasing doesn’t require a crypto wallet, crypto exchange account, or “any other complicated technology.”
He says it’s a “whole new way to make money from Bitcoin” that only requires a smartphone or computer and a “regular brokerage account.”
“What you need is a phone or a computer…
A regular brokerage account…
And about 3 seconds to execute this simple transaction.”
Long story short, Jeff Clark suggests that he’s found a simpler way to make more money with bitcoin, and in less time, thanks to his so-called “3-second” strategy.
And he claims it can work whether bitcoin goes up or down in price.
Is it legit?
Jeff Clark’s strategy involves trading bitcoin-related options, which is a legitimate method that some traders use to make money speculating on bitcoin’s price.
And because options involve a form of leverage, it is theoretically possible to see higher gains with Jeff Clark’s method than simply buying and holding bitcoin.
However, there are also significant potential risks involved with this strategy. And in my opinion, it misses the entire point of holding bitcoin in the first place.
What Is Jeff Clark’s “3-Second” Bitcoin Strategy?
Jeff Clark didn’t go into much detail on his so-called “3-second” bitcoin strategy in the video, but he did drop some hints about it, which was enough to get a general idea of how it works.
For instance, based on what is stated at the very beginning of the presentation, we know that Jeff Clark’s method involves trading bitcoin with a “regular stock brokerage account.” And we know his method can work whether the price of bitcoin goes up or down.
“It involves Bitcoin.
It takes 3 seconds to execute…
And it could let you generate gains as high as 660%… 810%… even 1,925% from Bitcoin within days…
Right in your regular stock brokerage account.
No crypto wallets. No crypto exchange… no previous experience needed.
Jeff calls it the 3-second Bitcoin ‘Flip Trade’ …
Because this method works whether Bitcoin skyrockets to $100K – or crashes to $10K.”
We also know that his strategy involves options:
“In a moment, I’ll show you plenty of opportunities where you could have made even bigger gains from Bitcoin my way…
But if you’re wondering…
How is that possible?
I’m here to tell you – it involves options.”
“My Bitcoin options technique gives you the chance to start profiting from one of the most exciting investment assets of the last decade…”
What “Bitcoin options technique” is Jeff Clark referring to?
I’ve never traded a “bitcoin option” before, and Jeff Clark didn’t reveal the exact options trading method or ticker he was referring to in the presentation. However, my understanding is that bitcoin-related options work like any other call or put option.
In short, an option is a derivative that gives a trader the right, but not the obligation, to buy or sell the underlying asset for a set price on or before a set date. And they allow traders to speculate on the price of an asset (up or down) without actually owning it.
Options also involve leverage because an option buyer can pay a relatively small premium to “control” a larger position than would be possible by purchasing the underlying asset.
How do you trade bitcoin options?
Like stock options, “bitcoin options” allow you to speculate on the asset’s price. So, for example, if you think bitcoin’s price will rise, you can buy a bitcoin-related call option, and if you think it’ll go down, you could buy a put option.
There are many crypto exchanges that offer traders the ability to trade bitcoin derivatives, including options, but since Jeff Clark said his strategy doesn’t involve a crypto exchange, his strategy must involve an option that can be traded in a “regular” brokerage account.
And I think I know exactly what “ticker” he’s teasing…
What “Bitcoin Option” Is Jeff Clark Teasing?
At first, I thought Jeff Clark might’ve been talking about what some refer to as a CME bitcoin option, a type of option where the underlying asset is a bitcoin futures contract.
However, as I was browsing Jeff Clark’s website, I came across a page that shows you the track record of his trade recommendations. And some of his recent Jeff Clark Trader recommendations have involved the ProShares Bitcoin Strategy ETF (ticker: BITO).
Long story short, this appears to be what he’s recommending.
According to the proshares.com website, the fund does not invest directly in physical bitcoin but instead has “managed exposure” to bitcoin futures contracts. So it does perform differently from the spot price of bitcoin.
However, this ETF appears to be at least somewhat correlated to bitcoin’s price overall. And it is possible to trade options of the ProShares Bitcoin Strategy ETF.
Technically, it’s not a “bitcoin option” because the option’s underlying asset isn’t bitcoin, which is probably why Jeff Clark didn’t refer to it as a bitcoin option in the presentation.
But this appears to be the “ticker” he teased in the presentation based on the clues he shared and the page on his website that shows you his track record.
Of course, it’s entirely possible Jeff Clark’s referring to something else, but either way, the gist of his strategy involves speculating on bitcoin’s price using options.
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Is Jeff Clark’s Bitcoin Strategy Legit?
Using options to speculate on bitcoin’s price can theoretically be a way to maximize gains given the leverage aspect, and it can also allow traders to potentially make money even if bitcoin goes down in price. So what Jeff Clark said in the presentation is true.
However, there are some drawbacks to consider with this strategy.
Well, for one thing, it might take “3 seconds” to execute a trade recommendation that Jeff Clark shares with you, but blindly following someone’s recommendations isn’t a very good idea, in my opinion. It’s always best to educate yourself on what you’re investing in.
And if you do that, you’ll quickly find that learning how to trade options successfully is WAY more complicated than simply buying and holding bitcoin.
With bitcoin, all you need to do is buy and hold it.
With options, you need to understand complex derivatives contracts and take into account things like an option’s premium, strike price, expiration date, and much more.
Second, while all investments carry risk, options can be particularly risky.
Why? Because while position sizing may help limit the overall risk, options involve using a form of leverage, and when you’re betting on the (relatively) short-term price movements of a highly volatile asset (bitcoin) with leverage… my goodness.
Your position can be wiped out very quickly if things don’t go your way. And because you don’t hold the asset, that’s it. That money is gone.
Third, speculating on paper derivatives completely defeats the purpose of buying and holding bitcoin in the first place (i.e., holding a pristine store of value for the long term).
So the bottom line is that, while Jeff Clark’s strategy may be perfectly legitimate in and of itself, and it possibly could work out well for some, there are drawbacks to consider.
Personally, I prefer to hold bitcoin itself over the long term.
That’s me, though.
And what you decide to do is totally up to you.
Either way, if you want to know more about Jeff Clark’s strategy, he details his recommendation in a report called “Bitcoin’s 3-Second Challenge: How to Make 10x More Gains From a Regular Brokerage Account.”
And the only way to access that report is to join Jeff Clark Trader.
What Is Jeff Clark Trader?
Jeff Clark Trader is a monthly research service run by Jeff Clark focused on options trading, and it’s sold by a company called Omnia Research.
Each month, Jeff Clark sends subscribers his latest trade recommendation and analysis and provides updates on his recommendations throughout the month.
Subscribers also receive an eight-part video training series Jeff Clark put together dedicated to helping you learn how to trade options successfully.
How much does it cost?
Jeff Clark Trader costs $19 for the first year if you join through the presentation. And according to the Omnia Research order page, it renews automatically at $129.
For that, you get Jeff Clark’s latest trade ideas, research reports (including the one mentioned earlier), updates, training series, and other resources.
It looks like a pretty comprehensive service overall.
As for whether or not it’s worth joining, that’s something only you can decide. And since I’m not a member, I can’t tell you what it’s like based on my own experience. That said, at the very least, the service doesn’t appear to be a scam.
Who Is Jeff Clark?
The presentation states that Jeff Clark is a multi-millionaire trading expert who has shown people how to profit through bull and bear markets over the years.
And according to Jeff Clark, he owned and ran a $200 million money management firm that specialized in options trading for over 20 years.
“For over 20 years, I owned and ran a $200 million money management firm that specialized in options trading.
Most of my clients were CEOs, entrepreneurs, venture capitalists… and other wealthy individuals.”
During that time, he says he trained over 1,000 people to become licensed stockbrokers and that he was hired by California University to teach options trading to MBA students.
“I was hired by a California University to teach options trading to MBA students.
And when I ran my options trading firm, I also trained over 1,000 people to become licensed stockbrokers. Some of them ended up working for firms like Merrill Lynch or Paine Webber.”
At one point or another, Jeff Clark began sharing his research and recommendations with Stansberry Research readers. And today, he runs a handful of trading services at Omnia Research, including his flagship service, Jeff Clark Trader.
Does he have a good track record?
That’s a difficult question to answer without having access to a complete list of Jeff Clark’s trades. But the page on Jeff Clark’s website that I linked to earlier shows you a list of his trades for the different services he runs, going back as far as 2017.
I’ve also written about his “One Stock Retirement” recommendation on this blog, so you might find that helpful if you want to see what else he’s recommended.
In any case, there’s no guarantee you’ll make money following his recommendations, but Jeff Clark does seem to be a knowledgeable trader. And judging by his track record, he has recommended some decent trades over the years.
Jeff Clark’s “3-second” bitcoin trading strategy centers around using options to make money speculating on bitcoin’s price rather than buying and holding bitcoin itself.
I can see why some might be drawn to this type of thing, given the potential upside, and Jeff Clark’s presentation was pretty compelling.
However, I think it’s important to do your own research on this because there’s a lot to consider when it comes to trading options and buying bitcoin.
And at the end of the day, there’s no guarantee you’ll make money with any investment, regardless of what asset you buy or how you choose to trade it.
Either way, I hope what I’ve shared in this post has helped shed some light on the “little-known crypto move” Jeff Clark teased in the presentation. Thanks for reading.