Best option strategy to make money
Nothing could be further from the truth. When traded properly, options can be much safer than even stocks — and more lucrative. However, despite the tremendous safety options provide, most people still lose money trading options because their approach resembles a game of roulette. Will it happen in a day, week, month or longer? Talk about manna from the sky. When you get it right, you can create life-changing profits virtually overnight.
Set-ups that can significantly increase your chance of success and potentially land you windfall profits like these subscribers:. It feels good to write a success story after a month of waiting, but no complaints.
The stock market in October was very tricky and required patience. On Thursday I added to my position and sold everything the following Tuesday at break-even. Thanks for your help. Not to mention — sometimes the volatility can be gut wrenching.
When all the stars align giving you the right odds, it makes a ton of sense. And according to Forbes: By selling options instead of buying them, you turn the tables in your favor. Everything you ever thought was risky about options becomes a huge safety net because you are on the receiving end of the premiums. If you are new to options, let me explain a basic yet very powerful strategy for generating substantial income from solid blue-chip stocks.
The strategy is selling puts. If you already understand this, it will only take a second and should be relatively pain free: Buying a put option on a stock you own is similar to buying insurance on a car.
When you buy car insurance you pay monthly or annual premiums to insure your car in the event of an accident. If you never get in an accident you lose the premiums which become the profit of the insurance company. When you buy a put insurance on a stock, you pay a premium, but now your stock is insured in the event of an accident stock drops to certain value. Since put buyers lose their premium However, if you only sell puts on stable blue-chip companies, at a price where the stock would be significantly undervalued, and you end up owning shares in an undervalued and incredibly profitable company Once you learn how to successfully sell options, never again will you be an accident victim or option gambler.
Who puts more money in his pocket, the guy at the roulette table betting on red or black, or the casino? They use probabilities to earn profits by insuring events that rarely happen. Let me repeat that, they use probabilities to earn profits by insuring events that rarely happen! He did the same thing in for his investment in the railway company, Burlington Northern Santa Fe. He sold nearly 5. Selling puts on stocks you want to own can be an ultra-conservative strategy when you know what you are doing.
However, I will teach you several low-risk strategies which involve selling hedged calls-never naked-to generate income. These techniques, coupled with specific trading opportunities I will share with you every single month more on this just aheadcan be a more conservative and lucrative way to create wealth than buying stocks themselves. Buffett created the majority of his wealth actually selling insurance through Geico to willing buyers.
Let me back up and introduce myself. My career at the bank solidified just how rigged Wall Street is against the little guy — especially as an option buyer. Every so often an option buyer gets lucky and the stock makes a big move. When done right, all that means is you have to buy shares in a great company that is deeply undervalued with lots of upside recovery potential In fact, it can often make you even more money when the stock recovers.
But most of the time Not to mention these premiums can be reinvested over and over again. Let me give you an example of how profitable selling options can be. So other than the 1. Initially that may not sound like a lot.
Over the course of a year, using this exact strategy It doubles your money every two years - with much less risk than buying stocks outright. Are you willing to subject your entire life savings to extreme risks for a pathetic 1.
The good news is, you can use this conservative option selling strategy to consistently generate monthly returns between 1. Some investors, working with even smaller portfolios, have done even better like Doug W. To say I am happy would be an understatement. Your recommendations are making me a successful trader. Thank you very, very much.
I admire your dedication to a fine product. I am now having my son open his account to join us. Thank you for helping me reach my Goal. This is money that can immediately be used to pay bills, send grandkids to college, travel the world, give to church and charity, reinvest for even greater profits down the road or anything else money can buy. Since subscribing to your service I have made 12 trades. All 12 have been winners. My average return on invested capital is 8. Annualized that works out to be When used properly, they are the most versatile trading instrument that exists — and they can be the safest and most profitable too.
In fact, prior to she knew nothing about stocks or options. She had a small six-figure retirement fund, managed by a mutual fund manager who consistently underperformed the market. That was the extent of her market experience. However, everything I will share with you about her she recently shared in a national interview.
I have been a subscriber for six months. After paper trading the first month I was impressed enough to continue my subscription and start trading for real.
Keep up the great work! My wife and I love your trade set ups, especially the short time frame until expiration which gives us complete peace of mind and a higher rate of return. Thank you for providing us with such a good report! Thomas, What better time than today to thank you for allowing me to be a subscriber. I am 92 years old and for years have lost money trying to find a way to make money consistently using options. Your newsletter is a blessing and I Wish you many years of continued success.
At the seminar they were offered the opportunity to invest in an educational program that lasted over a year and promised to teach them how to trade both stocks and options. Peggy said there was no way she would ever invest that kind of money. However, with some arm-twisting from her friend she reluctantly gave in and they took the plunge. After several years of poor results trying to guess market direction she grew extremely frustrated. But rather than quit and give up, she turned to the options market.
Sick and tired of trying to predict market direction, she decided to trade options the same way professionals do, which is to sell option premium and profit whether the market moves up a bit, down a bit, or trades sideways.
Her initial results were shocking… her confidence shot through the roof Her strategy is very simple. As the market chopped around and stayed within a fairly wide range, the options expired worthless and she kept all the premium.
Word of her success traveled quickly among family, friends, and neighbors The possibility of retiring with millions of dollars in your portfolio is exciting for those not yet retired. But equally exciting for current retirees is the fact that high double digit returns from these conservative option selling strategies allow you to potentially generate huge monthly cash-flows even on a modest portfolio.
The opportunities are virtually endless. On any given day there is an opportunity to generate thousand of dollars in spendable cash from the safest and biggest blue chip companies in the world with much less risk than buying stocks outright. Just remember, during the dotcom and real estate busts, even the strongest companies in the world got crushed. According to Buffett stocks are priced to earn a meager 1.
Over the last 18 months stocks have gained a total of 3. If you are younger than 45, maybe you can afford to take huge risks in growth stocks, currency trading, futures trading or some other high risk investment. Societies, both individuals and governments, are saddled with enormous amounts of debt and yields have disappeared making it impossible to generate income from traditional fixed income investments.
It can be the light at the end of tunnel for most traders, investors, and retirees. The trick is knowing which option premiums are the best to sell to generate the greatest amount of income and mitigate the majority of the risk.
I teach you all of this plus so much more when you become a member of my new Retirement Revival service. I include an ideal buy range for the stock and a stop loss price.
You can buy and hold each pick for both capital appreciation and dividend income. Now you may be wondering why I would recommend buying stocks at all if selling option premiums is so lucrative.