How I generate a Large Monthly Income on the Share Market
I invest on the US share market, using several brilliant, but little know strategies that the wealthy have been using for years to generate huge incomes.
My Strategies combine owning stock and the use of Call and Put Options together.
These strategies enable me to create a sizable monthly income, with very little effort and it doesn’t take up much time either - just brilliant!
Have you heard of Options or Option trading? Options on the share market allow investors to control a large amount of stock/shares with very little money invested. In other words it use's a high amount of Leverage (remember we like leverage).
This gives Option traders the ability to make large percentage profits on the directional movement of the stock. The only problem with this is that the investor needs to pick the direction of the stock correctly to be able to make the profit. Hence this is similar to the age old strategy of just buying the stock and hoping it goes up in value - They are both "directional" type trades.
I practiced "Option Trading" for a while, and quickly found out that it is very "hit and miss". I would profit on some trades and loose on others - I was not happy with this approach, so I kept looking.
I found that other investors were creating and selling the options that "option traders" buy and hope to profit on. By selling/writing the options you get paid a "premium" income into your account immediately! And you get to keep that income no matter what direction the stock moves in.
THAT'S RIGHT!!
You make Money when the Market is Up, Down or Sideways!!!
To sell "call" options you have to purchase the under-lying stock first, then sell the call option against it, hence the name "Covered call". However you can use leverage here too! by using "margin" you only have to put up half of the money to buy the stock. This gives you the ability to double your percentage return on your money invested to buy the stock (we like that too).
*Note: If you have more than $100k US in your trading account, you can quailfy for the new "Portfolio Margin" where we can use much greater leverage.
Are you thinking "this all sounds great but, i dont have any money to invest with" Well If you have equity in your house you can draw cash down agaisnt that, or some people who didnt own their own home have used a personal loan to invest with! After all whats wrong with borrowing money at say 6-10% per annum when you are making 8-12% per month, YES PER MONTH! thats 96-144% per year!!
"I don’t know why people simply buy stock and hope, when they could be writing covered call options and make a great monthly income whether the market goes up, down or sideways."
I have spent several thousand dollars on courses to learn how to trade – but I have now discovered a great new way to learn how to trade these strategies with these downloadable E-courses for an absolute fraction of what it cost me!
I highly recommend this route as a low cost starting point for anyone looking to get into trading with these methods - It is actually easier than you think!
Ok, so you like the sound of making great monthly Income by Selling Covered Calls!!
Well how would you like to know how to make an equally as good (if not better) income on the stock market WITHOUT having to own the stock first?
Yes, I thought so! Well this is another one of the strategies that I use to generate monthly income, and the best bit is – I DON’T EVEN HAVE TO OWN THE STOCK!
Let me introduce you to Selling Put Options. This is where we sell/write “Put” Options on the share market, and instantly get paid a premium income. Think of selling puts as “Insurance”. Take for example when you buy an insurance policy for your car. You pay a premium to protect your downside if your car should get damaged in an accident or is stolen. So you pay the premium, but in most cases your car is fine and you never need to make a claim on that insurance policy, and the Insurance Company gets to keep the premium, and this is how they make their money.
In our case on the stock market, when we sell/write a put option, we are selling an insurance policy, to someone else who wants to protect their downside risk if the shares they own fall below a certain value. They pay us a premium for this protection, which we get to keep even if the stock price goes up, down or sideways. We only have a potential risk if the stock goes below the value that we choose to insure at (this is called the “strike price”). And even then there are things we can do to cover off this risk.
We also only choose to sell Covered Calls and Put Options on certain blue chip stocks that meet certain criteria’s, giving us a safe but profitable trades, that are not so dependent on market direction. (We really like that)
To learn how to Sell Covered Calls and Put Options
Get your copy of the downloadable E-Courses HERE
(You recieve 6 seperate E-Courses covering 6 different trading stratergies for one very low price. Payment via Credit Card or PayPal)
How do I place my trades?
I place my trades via a discount online broker, www.optionsxpress.com which have a website-based trading platform that I can access anywhere via my laptop (even from my hotel room whilst on my recent holiday to Thailand). It is easy to use and inexpensive compared to the likes of the more traditional brokers that you need to contact via phone every time you want to place a trade.
OptionsXpress have been voted "best online broker" four years running and they are perfectly set up to cater for traders of these strategies. They also have an excellent “Virtual Trading” platform where you can practice your trading on the real market to test everything before doing it for real – A great learning tool!
They also have many free resources to help with your trading, for example:
- Free charting packages
- Easy to use order screens
- Quotes & Data
- Screening tools
- Trading calculators
- Online Live help
- Virtual Trading feature
- Education Webinars & Articles
- And much much more
This is the Online Broker that i personally use for my trading and i can throughly recommend them.
When i first started trading i couldnt believe that it was this simple to set things up and place trades. I just always thought it must have been really hard - and that you had to be someone very special to be able to do this stuff, boy was i wrong - ANYONE CAN LEARN HOW TO DO THIS!!!
Visit the brokers website and check out what they offer for yourself - www.optionsxpress.com
