The easiest way to make passive income is to earn interest or dividends on bank accounts, stocks and electronic-traded funds (ETFs). This is one of the safest strategies when you own the right securities. Many ETFs pay monthly dividends that can be combined to create a significant number of passive income sources or checks each month. More on this later.
One of the best ways to leverage your investment capital is to use stock options. There are literally thousands of ways to use options, both as a trading tool and as a way to protect or hedge your investments. But options can also be used to create passive income through becoming an option ‘writer’ instead of a ‘taker’. Here, you get paid a premium when you sell the rights to an option. This premium is your passive income source.
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Covered calls on stocks you purchase. We have a proven system of identifying conservative covered call investments that can generate 3-5% return each month. You can select from our list or invest in all recommendations. Our system focuses on selecting stocks with the right volitility so you don’t get burned by high-risk investments.
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Cash-secured PUT trades to enter a position. When you find a stock you want to purchase, then sell put options on the stock to lower the purchase price and to collect option premium for cash. Do this monthly for income until the stock is put to you, Then, sell covered call options on the stock.
- Dividend investing for cash. This is a simple investment in world-class dividend stocks and CEFs that pay monthly distribution. This also provides a way to diversify your types of income by using various CEFs investments such as alternatives such as REITs, bonds and many other funds.