1. Profits Run, Inc. (“Profits Run”) is a research firm publishing newsletters, trading and educational products (collectively referred to as “Programs”) related to various markets, including stocks, options, ETFs, and currencies, that are offered for a subscription fee to the general public (persons subscribing to Programs are referred to as “Subscribers”).
2. Profits Run is not registered as an investment adviser and Profits Run does not provide individualized or customized advice about investments of any kind, regardless of whether such investments involve an individual security, a class of securities, or a market in which investment securities are available for purchase or sale. Nor is the information published by Profits Run a customized or personalized recommendation to buy, sell, hold, or invest. The Programs are intended to supplement your own research and analysis. The information published is based on the opinions, statistical and financial data and independent research of Profits Run. Profits Run’s Programs do not reflect the views or opinions of any employee, officer or representative of Profits Run.
3. Programs are intended to supplement your own research and analysis. The information contained in the Programs is based on opinions, statistical and financial data and independent research of Profits Run. Programs do not reflect the views or opinions of any employee, officer or representative of Profits Run. Subscribers should use and depend on their own trading and investing skills, including consulting their own brokers and financial advisors.
4. Profits Run, its employees, officers or representatives, are not responsible for any error(s) or omission(s) in any of Profits Run’s newsletters or Programs. Any commentary, analysis, or opinions represent the views of Profits Run and are subject to change at any time without prior notice. Programs contain information which is obtained from sources Profits Run believes to be reliable; however, Profits Run has not independently verified or otherwise investigated such information. Profits Run does not guarantee the accuracy or completeness of any such information. Programs are neither a solicitation to buy nor an offer to sell any investment or Product.
5. Please note the disclosures below:
a. INDIVIDUAL RISK TOLERANCE, INVESTMENT GOALS AND OTHER FACTORS MAY VARY AMONG SUBSCRIBERS, AND ANY RELIANCE, USE OR TRADING BASED UPON THE INFORMATION OR RECOMMENDATIONS CONTAINED IN THE PROGRAMS MAY NOT BE SUITABLE FOR ALL INDIVIDUALS.
b. Trading and investing involve substantial risk. Profits Run does not make any guarantee or other promise as to any results that may be obtained from using the Programs. Past performance is not necessarily indicative of future results. No Subscriber should make any investment decision without first consulting his or her own personal financial advisor, broker or consultant and/or conducting his or her own research and due diligence, including carefully reviewing any prospectus and other public filings of an issuer. Profits Run disclaims any and all liability in the event any information, commentary, analysis, opinions, or recommendations in the Programs prove to be inaccurate, incomplete or unreliable, or results in any investment or other losses by Subscribers. Any reliance upon or use of the Programs is at the Subscriber’s own risk.
c. Trading can be extremely complicated, particularly with respect to stock options, and it is important to understand the risk of these trades before entering into them. For example, more aggressive positions in options generally have a greater probability of losing, while less aggressive positions are generally less likely to yield substantial profits. Similarly, far out-of-the-money options are generally unlikely to settle in the money, and options purchased close to their expiration dates are generally very high-risk and, thus, are more likely to produce large profits or losses very quickly.
d. Subscribers are free to follow any recommendations contained in the Program and use the information, in whole or in part, or not at all. The decision to take profits, losses, add positions, or liquidate positions is at all times in the sole discretion of the Subscriber.
e. Subscribers may submit questions to Profits Run by submitting a ticket at our support website at www.profitsrunsupport.com or by emailing us at firstname.lastname@example.org. However, Profits Run will only answer Subscriber questions that do not involve providing customized or personalized trading advice.
RISKS OF TRADING AND INVESTING GENERALLY
You should carefully read and fully understand the following risks of trading and investing.
All trading, whether in stocks, options, or other investment vehicles, is speculative in nature and involves substantial risk of loss. Subscribers should review the information available at the websites of the Securities and Exchange Commission (“SEC”) at http://www.sec.gov and the Financial Industry Regulatory Authority (“FINRA”) at http://www.finra.org. Subscribers can also review public companies’ filings at the SEC’s EDGAR website (http://www.sec.gov/edgar.shtml). FINRA’s website also contains information about investing. Certain information contained in the Programs is derived from material published by companies or submitted to governmental agencies. Even though Profits Run evaluates such material, Profits Run does not independently verify the accuracy or completeness of the information. Profits Run does not in any way warrant or guarantee the success of any action taken in reliance on information provided by Profits Run or that any such action may not result in losses, potentially substantial.
1. Trading and investing is inherently risky. You should trade or invest using only “risk capital” – money that you can afford to lose. Profits Run recommends that Subscribers risk no more than at most 10% of their liquid net worth. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
2. Unless specifically noted otherwise, all profit examples provided in our websites and publications are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on published market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance results have many inherent limitations. Also, any hypothetical trades referred to in these materials do not include slippage or the costs of subscriptions, commissions, and other fees or charges. Because trades underlying these examples have not actually been executed, results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading programs in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material matters which can adversely affect actual trading results. There are numerous other factors related to markets in general or to the implementation of any specific trading program in particular which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect trading results. Profits Run makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. There are frequently substantial differences between hypothetical performance results and actual results achieved by any particular trading or investing program.
SPECIFIC RISKS OF TRADING OR INVESTING IN STOCKS
Certain trades or investments in stocks cannot generally or easily be sold or converted to cash. You should determine whether there is any penalty or charge you are required to pay if you attempt to sell a stock or an investment quickly. Investments in stock issued by a company with little or no operating history or published information may involve greater risk than investing in a public company with an established operating history and extensive public information available. There are certain additional risks associated with trading a low-priced stock having a limited trading market, e.g., so-called penny stocks. Stocks, including mutual funds, are not federally insured against a loss in market value. Stocks you own may be subject to tender offers, mergers, reorganizations, or third-party actions that can impact the value of the stock. You should pay careful attention to public announcements and information sent to you about such events. Be sure you fully understand the terms of any offer to exchange or sell your shares before you act. In some cases, such as partial or two-tier tender offers, failure to act can potentially have detrimental effects on your investment. The greatest risk in buying shares of stock is having the value of the stock fall to zero. On the other hand, the risk of selling stock short can be substantially greater. “Short selling” means selling stock that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. The seller in a short sale transaction attempts to profit by buying the stock at a more favorable price in the future than the price at which the seller sold short. However, when the price of a shorted stock rises, the risk of loss is potentially unlimited.
SPECIFIC RISKS OF STOCK OPTIONS TRADING
When you open a stock option account, you should receive a booklet entitled “Characteristics and Risks of Standardized Options,” which is also available on the Option Clearing Corporation’s website at http://www.optionsclearing.com/about/publications/character-risks.jsp. This booklet contains a discussion of the characteristics and risks associated with stock options trading. Profits Run strongly encourages you to carefully read and understand this information.
1. Assignment of exercise to writers. As a writer of a stock option, you may be assigned an exercise at any time from the date of sale through approximately two days after the date of expiration. The consequences of being assigned depend upon whether the writer of a call is covered or uncovered, as discussed below. Since an option writer may not be informed of the assignment of exercise until up to two days after expiration, special risks can come into play. For example, an option writer who sells out their underlying position upon expiration may find out the next day that they have to surrender stock they do not now own.
2. Risk of unlimited losses for uncovered writers of call options. A “naked” or uncovered writer of a call option is at substantial risk should the value of the underlying stock move higher. For a naked call option writer, the risk of loss is potentially unlimited. The obligation of a naked option writer that is not secured by cash to meet applicable margin requirements creates additional risks. A sharp or significant adverse move in stock prices can create large margin calls, possibly resulting in a brokerage firm liquidating other holdings in the writer’s account(s) to cover the margin call. Since options pricing tends to be magnified relative to the underlying stock, a naked options writer may be at significantly greater risk than a short seller of the underlying stock.
3. Deep out-of-the-money options carry high risk of loss. Although purchasing stock options at strike prices significantly above or below current market price can be relatively inexpensive, you are at high risk of losing your money. There are two kinds of deep out-of-the-money options: A deep out-of-the-money call is an option to purchase shares of stock at a price far above the current market price. A deep out-of-the-money put is an option to sell shares of stock at a price far below the current market price. Although these options may seem relatively inexpensive, the chances of making a profit on such transactions are generally extremely low.
4. Out-of-the-money options near their expiration date carry a high risk of loss. The closer you buy an out-of-the-money option to its expiration date, the less likely it is to end up profitable. Although these options may seem relatively inexpensive, in order to profit in such situations, you will need precise timing and potentially the occurrence of a major event to significantly move the underlying security in your favor. The risks associated with these options is high, and you stand a significant probability of losing your entire investment in these positions.
5. Placing contingent orders, such as “stop loss” orders, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders or to execute such orders at or near the specified price.
Each Program includes a special discussion of risks. As you move through the educational materials that are intended to teach you how to use each service, be sure to carefully read and understand the risk sections. They elaborate on risks specific to the types of recommendations you might see in that service. Do not enter any trade without understanding all risks associated with that type of trading.
RISKS ASSOCIATED WITH FOREX TRADING
Off-exchange foreign currency transactions involve leveraged trading of contracts denominated in foreign currency conducted with a futures commission merchant or a retail foreign exchange dealer as the counterparty. Because of the leverage and the other risks disclosed with such transactions, you can rapidly lose all of the funds you deposit for such trading and you may lose more than the amount you deposit.
Forex trading is not conducted on a regulated market or exchange. Before you engage in any retail foreign exchange trading, you should among other things confirm the registration status of the counterparty.
Before deciding to participate in the foreign exchange markets, Subscribers should carefully consider their investment objectives, level of experience, and risk tolerance. As with trading or investing in general, use only risk capital and do not invest money you cannot afford to lose.
There is considerable risk in foreign exchange transactions, including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Trading foreign currencies may be susceptible to sharp and/or sudden price fluctuations. The leveraged nature of foreign exchange trading means that any market movement will have an expanded or magnified effect on deposited funds. Leverage can work against you as well as for you. Not only may Subscribers get back less than they invested, but Subscribers may lose their entire investment or even more. Subscribers should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor or other professionals.
TESTIMONIAL AND SUCCESS STORY DISCLAIMER
No representation is made that you will achieve profits or the same or similar results as any person(s) providing testimonials. No representation is made that a person providing a testimonial continued to experience profitable trading after the date on which the testimonial was provided, and in fact such person may have experienced subsequent losses. Subscribers who are sharing their stories have purchased a variety of Profits Run’s products and services ranging in price. Also, none of the persons providing testimonials have been compensated directly by Profits Run for telling their stories. However, in cdertain cases, Profits Run has encouraged Subscribers to submit their experiences for entry into various contests in which contestants can receive prizes.
Some Subscribers modify Profits Run’s methods, ignore the rules, or risk more money than they can afford to lose. No two Subscribers who use any specific Program will likely achieve the same results, even though they are using the same Program. Some Subscribers use more than one Program. Any testimonials from Subscribers do not guarantee that you will make money or will not lose money. Results of persons providing testimonials are not typical.
Programs (including but not limited to education or newsletters) are not designed or intended to qualify Subscribers for investing and are for educational and/or illustration purposes only. Programs are provided with the understanding that Profits Run does not offer or provide personalized or customized investment, tax, financial, accounting, or other professional advice or assistance. Trading or investing involves substantial risk. Any decision to trade or invest is a personal decision that only should be made after thorough research, including a personal risk and financial assessment.