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Posts Tagged ‘compound returns’

Income Trade for 70% Return

As income investors, we seek to create consistent monthly income by selling options to collect monthly premiums. This has been successful for our investors for years. Option selling offers another method to diversify investing strategies beyond traditional dividend investing. We have combined technical stock events with our strategy to identify high returns option selling opportunities. This income trade will generate a return of more than 70% annualized.

Stock: Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy.

The RSI is above its neutrality area at 50. The MACD is negative and above its signal line. The MACD must break above its zero level to trigger further gains. Moreover, the stock is above its 20 and 50 day MA (respectively at 21.51 and 21.89).

Chart: We have detected a “Double Bottom” chart pattern formed on Teck Resources Ltd (TECK). This bullish signal indicates that the price may rise from the close of 22.42 to the range of 23.90 – 24.30. The pattern formed over 18 days which is roughly the period of time in which the target price range may be achieved. Teck Resources Ltd has a current support price of 21.22 and a resistance level of 22.93.

 

 

 

 

 

 

 

Strategy: We have an opportunity to sell options for income with TECK as the stock should trade higher in the coming weeks. I recommend to place your trade and exit when you have locked in profits due to the stock price moving higher. Our goal here is to make income short term so we can exit and compound capital into another trade.

We are selling PUTs to take advantage of the stock price move to the upside. For conservative traders, you can create a covered call trade using the call for downside protection.  Before you can become a millionaire, you have to start thinking like one.  It isn’t just a pathway to wealth.  It’s a way of life… a belief system… a mindset – and it will show you how to build a full, rewarding life.

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You Can Help End Poverty

How We Made 100% in a Month

In our income newsletter, we focus on creating monthly income by selling options to collect premium. we like to focus on high quality stocks with stable earnings and price movements. To boost our income, we will add a few trades with technical analysis confirmation when we see an opportunity in a high return trade. This has created several winners in the past month. We made 12% in a 40 day trade which equates to over 100% on an annual basis.

We published our blog post on CF Industries (CF) on July 10. This stock had formed a diamond bottom pattern (Bullish), providing a target stock price for the short-term above $30 per share. The trade was:

CF is currently trading at $27.89 per share. We want to sell a cash-secured put option on CF using the August 2017 30 Call. For each 100 shares of CF you want to control, sell one August 30 PUT option for a $3.00 credit or better. That’s potentially a 12.0% assigned return in 40 days.

Since the trade was shared with Monthly Income subscribers, CF is trading at $30.50 –rising above the $30 price target. The stock maintained its stock price even with the recent market pullback due to the Korean Crisis. These trades allow investors to compound their money to continue to grow their income.

We continue to produce monthly income through covered call and cash-secured PUT trades. We don’t find gems like this one every day, but they make for a successful investing and wealth creation. Using these strategies, investors can easily add $1000s of income each month. For some, they have built an income large enough to live life on their terms. When your monthly income exceeds your living expenses, you have achieved financial independence.

Join the Monthly Income Newsletter voted the best value for option income trading.

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