As we start a new year, every investor should ask themselves this question: Did you beat the market in 2016? According to an article on CNBC “Most investors didn’t come close to beating the S&P 500”. The rationale is discussed as: “Bad market timing and poor stock picking kept most investors from fully reaping the …
The word “improbable” is defined as not likely to be true or to happen. Have you noticed how many events have happened in 2016 that were improbable? The Cleveland Cavaliers were trailing 3 – 1 in the NBA Finals but rallied to win the first world championship for the city of Cleveland. Last night, the …
Today’s stagnant economy isn’t what it used to be. 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. Many top experts, including Jeff Gundlach who is considered the “Bond God,” believe this is the “new normal” and …
You have undoubtedly heard it said before – compounding returns is the eighth wonder of the world or man’s greatest invention. But to an investor it is a great wealth builder. While many income investors think of compounding dividends, this can also be accomplished by option sellers by compounding the option premium received by selling …
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 »
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 …
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). …
Investors looking for a regular helping of special dividends should consider HollyFrontier Corporation (NYSE: HFC). The company just announced its 8th special dividend since August 2011. In addition, HFC just juiced its regular dividend by 50%. Subscribers to my Get Rich Monthly Income Plan received $31.00 per share in dividends in 2012 with a yield …
HFC pays 8th Special Dividend and Boosts Regular Dividend by 50% Read More »
