The year 2016 was another stellar year of total returns and monthly income. Our perpetual covered call strategy was a big winner. In this strategy, we create a covered call position to sell monthly call options for income and buy a long dated put option to protect our downside risk. The put cost is spread …
You have heard all of the old adages about investing such as there is no free lunch and many more. In general, these saying suggest that higher returns will always require higher risk of some type. Still, money managers and hedge funds continue to attempt to ink out higher returns on a risk adjusted basis …
Covered Call of the Month – 26% Annualized Return on this Stock Read More »
Investor sentiment turned strongly bearish recently as emerging markets were hit by both country-specific problems and the realization that the Fed’s trimmed bond-buying program reduces the liquidity that has boosted higher-yielding emerging market assets and put a floor under U.S. stock prices. The broad selloff in emerging markets over the recent weeks translated into the …
A covered call trade is a very simple instrument to increase your monthly income. The basic idea is to sell a call option for every 100 shares of stock you own. By selling the call option, the investor receives a premium which is what our investors call monthly income or monthly dividend payments. We sell …
How to Get 50% of Your Stock Purchase in Monthly Income Installments Read More »
Investors have been bracing for anything that could reverse at the last minute the market’s year-long rally, which saw the Dow and S&P 500 hit record highs again this week. The S&P 500 is up 26 percent this year and registered a sixth week of gains on Friday. However, income investors seeking to trade covered …
For subscribers to the Get Rich Monthly Income Plan, the monthly covered call trades all provided positive income from the selling of call option. One of the better trades was FedEx (FDR) as the setup is shown below. The covered call trade used a strike price of 120 as the stock closed well above this …
Constellation Brands (STZ), together with its subsidiaries, produces and markets beverage alcohol. The stock was reiterated with a Buy rating by analysts at Stifel Nicolaus. The firm raised its price target on the stock to $69 from $64. STZ Thursday posted better-than-expected Q2 results and said for FY 2014 it expects EPS of $2.80 to …
Investors seeking income in this volatile market can still sell covered call trades for both income and downside protection. In the past month, the S&P 500 produced a return of 0.73%. However, subscribers to the Get Rich Monthly Income Plan made off with a 4.7% return by trading a covered call on United Rentals (URI). …
If you are looking for income and have an interest in gold as an investment, then a new IPO might be what you are looking for to combine the two needs. Faircourt Gold Income Corp. (FRCGF) is a new closed-end fund that invests in gold stocks and sells covered calls and puts for income. With …
A New IPO – Gold Stocks with a 7% Dividend Yield Read More »
Covered Call trade on Advanced Auto Parts (AAP). OPTIONS STRATEGY: Look at the December 2011 70 covered call. For each 100 shares of Advance Auto Parts (AAP) stock you buy, sell one December 2011 70 covered call option for a 67.06 (69.31 – 2.25) debit or better. That’s potentially a 4.38% assigned return. This stock also …
