Most don't know where to turn for solid, profitable advice and spend too much time listening to mainstream media sources that specialize in bland, one-size-fits-all reporting and pay way too much attention to what the crowd is doing.

So at the start of what should be another volatile week, separate yourself from the crowd and invest in a smarter way. Today, I'm going to show you one way to do that...

"Leap" Ahead Of The Crowd With This Pro Technique

Most ordinary investors are perfectly content to stick with a tried-and-tested stock investing strategy. There's nothing wrong with that, but when the market decides to lurch around like a roller coaster, many folks end up dazed and totally confused.

They simply don't have the knowledge that allows them to stay protected and profitable when the market heads south. Don't be one of those guys. You can certainly do better.

As you may know, I'm very fond of using certain professional investment strategies as an alternative investment tool to just plain old stock investing. And contrary to popular myths, they're not confusing or complicated.

I'm talking primarily about strategies like covered call options and bull spreads. But today, I want to focus on one strategy in particular that is excellent in a volatile market: LEAPS options. Let me give you five reasons why...

Five-Star Protection And Profitability In A Down Market

#1: LEAPS Are Cheap: In the current market, the possibility of getting stopped out of an investment or enduring a hefty loss is significantly increased. The whipsaw action has smashed many portfolios that I'm sure investors thought were solid.

So let me ask you this: Would you rather lose 20% or 25% of your capital with no possibility to make any money back, or have just 10% of your capital at risk, with a comfortable time cushion built in to recover any losses and still make a profit? LEAPS are long-dated securities that allow you to risk a very small amount of money up front compared to what you would have to fork out for the underlying shares.

For example, you could buy 100 Walt Disney (NYSE: DIS) shares today for $32 - a total outlay of $3,200. Or you could buy one options contract (equivalent to 100 shares) in January 2009 $32.50 LEAPS calls for $2.30 - a total outlay of just $230 ($2.30 x 100).

#2: Time Is On Your Side: When you trade short-term options, time is your enemy. With LEAPS, though, you can make the same rational decisions about investing in a company that you do with stocks. But because LEAPS can expire in one, two or even three years in some cases, it gives you the flexibility to withstand a lot of adverse short-term market action. So in the Disney example above, you'd give yourself almost a year to be right while the market volatility subsides.

#3: Build A LEAPS Portfolio That Beats Stocks: Because LEAPS are available on so many companies, sectors, and ETFs today, you can build an entire portfolio of LEAPS, leave the rest of your money in a nice money market account and make more on your investment than you would with a stock portfolio.

Of course, the downside is that you'd miss out on any dividend payments. But on the upside, you can almost get a free ride on the market if you work it properly.

Here's how: On your next stock trade, consider buying a LEAPS option instead. As you've seen, you can save a big chunk of cash by doing so. Put the money that you didn't spend on the stock into a money market account for two years. The interest you'll get on that hefty amount may well cover a large chunk of the money you spent on the LEAPS - maybe ALL the money.

#4: You Can Go Long Or Short With LEAPS: You don't just have to go long with LEAPS. You can protect your portfolio from downside moves by buying LEAPS on individual stocks or indices without worrying about the unlimited downside risk of shorting stocks. Your downside is limited to what you paid for the LEAPS.

#5: LEAPS Are Easy To Trade: You can execute LEAPS in any type of trading account, including your IRA. They are liquid investments that provide you with a well-rounded, diversified portfolio.

P.S. When was the last time you heard anyone in the mainstream media talk about using LEAPS? It's about as rare as seeing Haley's Comet. Maybe they think it's too complicated and you won't understand. Or maybe they just don't want you to know, so they can skim the money for themselves. But there's no reason why you shouldn't add this strategy to your trading arsenal. I've written a report that lets you in on the secret and shows you how to notch a +133% win in just two months and turn $500 into more than $1,000, or $6,000 into $24,500. Check it out here.

About Karim Rahemtulla

Karim Rahemtulla is one of the country's foremost specialists in options trading, and, along with Executive Director Julia Guth, a principal founder of Mt. Vernon Research, as well as the founder and editor of The Income Trader: A Covered Call Strategy, The 400 Report and The Smart Profits Report.

An internationally renowned options trader who's been dubbed a "Market Maven" by CNBC, Karim also sits on the Advisory Panel for The Oxford Club, and is a frequent contributor to The Oxford Club Communiqué. Karim was educated in England, Canada, and the U.S. and is fluent in several languages. He travels the world regularly to find the best investment opportunities for our members.