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Close These Positions for Monthly Income – 6.4% in a Month!

Our investing plan starts by capturing option income on a monthly basis. You will learn this is easier than renting houses, creating a startup or delivering pizza for a side hustle on the weekends. You can make $1000’s of dollars each month to sustain the level of income you desire. We sell options on stocks that gives us premium income as soon as we enter the trade. Then, we will repeat this option trade over and over several times each month to increase our income. Let me start by telling you – you’re going to like how this money looks and feels in your account.

That’s like getting several Social Security checks in a single month or getting a paycheck every week without having to work a job for a single minute. Best of all, you can sign up to get these checks today regardless of your age, income or which state you live in.

All you’ll have to do is decide how many of these freedom checks you want, stake your claim in this massive payout … sit back … and watch the cash pile up. I’ve already shown a few people just like you how to grab checks like this.

Many have already made out like bandits. Here is the proof:

We have two more winning PUT trades to close out this week for big gains! To make this level of income in a few weeks is a great opportunity. We will release new trades in the coming week.

SSYS is now trading at $24.25 so close the position to lock in your 6.4% gain!

TRADE: Look at the January 2018 22.5 PUT trade. For each 100 shares of SSYS stock you want to control, sell one Jan 2017 22.5 PUT option for a $1.35 debit per option or better. That’s a 6.4% return on the PUT trade.

MTOR is now trading at $24.48 so close the position to lock in your 3.9% gain in 22 days!

TRADE: Look to sell a January 2018 24 PUT for about $0.90. This creates a return of 3.9% to expiration (29 days) or greater than 49% annualized.

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Take Profits on These Trades for Triple-digit Gains

We released our Monthly Income Newsletter this past weekend with trades for the coming month.  Again, we have several early winners in our PUT trades for income in only 5 days or less. As the stock price moves higher, we close these positions to lock in profits.  This allows us to reallocate our capital to the next trade and to capture multiple income opportunities each month. We will release more PUT trades each week as our strategy is the best special dividend money maker on the market.
For subscribers:
We have a fast winner in $FINL as the stock had a big pop today – up over 12%. I suggest investors to buy-to-close this trade at ~$0.20 per option or less.  This gives us a nice 9% profit in 4 days or over 800% on an annualized return!
We have a another winner in $BEAT as the stock has moved higher to $31.75. I suggest investors to buy-to-close the 29 PUT trade at ~$0.20 per option or less.  This gives us a nice 3% profit in 5 days or over 200% on an annualized return!  There will be more trades moving into next week after the holiday.
The market was in a blast mode last month as it ran to record highs again. We had all winners this month with max income trades. And how about the monthly returns on the PUT trades – 4.8% on ARRY; 8.8% on TLRD; 9.6% on NL; and 8.7% on MDXG!!! This is a yearly return on some buy and hold stock investments in a monthly trade for us. We will look for more stock breakouts for PUT trades in our next newsletter.

Selling PUTs for High Return Monthly Income

I have created an investment that achieves higher monthly returns while managing stock risks in the trade. You may be skeptical of this concept and should be when you hear something like this introduced into your trading plan. To explain, let’s look at what must happen to a stock price for a successful PUT selling trade. To keep the premium from the PUT sell, the stock price must be above the PUT option strike price at expiration. To increase my percent of winning PUT trades, I invest in stocks with price momentum moving higher. This increases the probability of the stock price closing above the strike price – giving us more winning trades.

How do I identify these winning trades? I combine the fundamentals of a stock with its price performance on its stock chart. I find securities that have a positive change in price that creates upward price momentum. You may have heard about price breakouts and other upward biased chart patterns. This introduces a concept of technical analysis into our trading plan.

Technical analysis uses stock price movements and trading activity as the basis for drawing a conclusion about where the price may be headed. It is based on the premise that prices move in trends that tend to continue until something changes to affect the balance of supply and demand for the stock. These changes can be detected by analyzing prior changes, looking for recurring patterns that indicate a price trend, or indicate areas of support and resistance that may influence the price direction.

SEE THE RESULTS FROM THIS MONTH…

The market was in a blast mode as it ran to record highs again. We had all winners this month with max income trades. And how about the monthly returns on the PUT trades – 4.8% on ARRY; 8.8% on TLRD; 9.6% on NL; and 8.7% on MDXG!!! This is a yearly return on some buy and hold stock investments in a monthly trade for us. We will look for more stock breakouts for PUT trades in our next newsletter.

Sell Put on Array Biopharma (ARRY)

STRATEGY: Look at the December 2017 11 cash-secured put trade. For each 100 shares of ARRY stock you want to control, sell one DEC 2017 11 put option for a $0.50 debit per option or better. That’s potentially a 4.8% return on the cash-secured put trade.

Actions: ARRY is currently trading at $10.82 so the 11 PUT we sold is ITM. Buy to close the PUT before expiration if the stock price is below the strike price of 12. If stock above 12, PUT will expire.

Sell Put on Tailored Brands (TLRD)

STRATEGY: Look at the December 2017 16. cash-secured put trade. For each 100 shares of TLRD stock you want to control, sell one Dec 2017 16 put option for a $1.30 debit per option or better. That’s potentially a 8.8% return on the cash-secured put trade.

Actions: TLRD is currently trading at $19.46 so the 16 PUT we sold is OTM. Let the options expire on 12/15.

Sell PUT on NL Industries (NL)

STRATEGY: Look at the December 2017 12.5 PUT trade. For each 100 shares of NL stock you want to control, sell one Dec 2017 12.5 PUT option for a $1.10 debit per option or better. That’s potentially a 9.6% return on the PUT trade.

Actions: NL is currently trading at $13.30 so the 12.5 PUT we sold is OTM. Let the options expire on 12/15.

Sell Put on Mimedx Group (MDXG)

STRATEGY: Look at the December 2017 10 cash-secured put trade. For each 100 shares of MDXG stock you want to control, sell one Dec 2017 10 put option for a $0.80 debit per option or better. That’s potentially a 8.7% return on the cash-secured put trade.

 

Actions: MDXG is currently trading at $12.25 so the 10 PUT we sold is OTM. Let the options expire on 12/15.

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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Option Basics – Option Strike Prices

Income investors need to know about option strike prices to optimize their trades. Here are some basics…

Stock option strike prices are the price stated on each call or put option.  The strike prices can be classified according to their relationship with the current stock price.  There are three categories:

  • In the money (ITM) defined as calls with strike prices below stock prices and puts with strike prices above stock prices;
  • At the money (ATM) defined as the call and put strike price at or near the stock price;
  • Out of the money (OTM) defined as calls with strike prices above the stock price and puts with strike prices below the stock price.

As you know, an option will move from category to category based on its relationship with the actual stock price movement.  For example, when a stock is trading at $50 the the $50 strike prices will be at the money.  When the stock price moves above $50, calls will be ITM while puts will be OTM.  Likewise, when the stock price falls below $50, then calls will be OTM and puts will be ITM.  Therefore, the category is totally dependent on the current stock price.

OTM options expired worthless while ITM will always be exercised by the holder because they still have a value at or near the expiration date.  When a stock option is exercised, the call holder buys the stock and the put holder sells the stock.  When options are exercised, the OCC decides to which brokerage firm the option will be assigned and the brokerage decides which customer will get the assignment. When you are assigned an exercise, those shares are said to have been called away or called out.

When stock options are American style, you can be assigned an exercise anytime the option is ITM.  Of course, early exercise is affected by the time value remaining on the option.  As time value begins to decline more rapidly as expiration nears, the holder is more likely to assign an ITM option.  In general, 10% of options are exercised, 60% are traded out and 30% expire worthless.  

 

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Option Income Trade for 43.6%

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 43% annualized. We are coming off a great trade in STM for a 40% gain.

Stock: RPC, Inc. (RES) provides a range of oilfield services and equipment for oil and gas companies involved in the exploration, production, and development of oil and gas properties in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, and the Middle East. The company operates in two segments, Technical Services and Support Services.

Trend: We have identified a bullish “Upside Breakout” chart pattern. This bullish signal indicates that the stock price may rise from the close to the range of $25. The faster moving average recently crossed above the slower moving average, signaling a new uptrend has been established. The PMO supports the uptrend price movement.

The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 19.54 and 20.12). RPC Inc is currently trading near its 52 week high reached at 23.36 on 25/01/17.

Strategy: We have an opportunity to sell options for income with RES 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.

For medium risk option trade, look to sell an October 2017 22 PUT for about $0.90. This creates a return of 4.3% with 36 days to expiration. This is an annualized 43.6% return.

For a conservative trade, you can setup a covered call trade. You can purchase 100 shares of RES and sell an October 22 CALL option for about $1.10.

We continue to identify winning option trades to generate income and to exit early as the stock bullish patterns moves prices higher.

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Selling Puts for Monthly Income

When you buy an option, you are hoping for a move in the stock based on a chart or event or your brother-in-law’s advice (bad move there).  Hopefully, you watch the option move up and then — when greed, fear or satisfaction set in — you sell and make a profit.  Or you watch it go down and either have an automatic stop loss in to sell it when it hits a certain level or, like most traders, you keep your fingers crossed and hope for the best … until the pain of losing on paper is greater than the fear of losing real money and you sell at a loss.

In a recent survey, results showed three out of four options traders still trade this way.  Accordingly, the same survey showed that three out of four options expired without being exercised or with any value.   And yet, the traders who took the “sell” side of the trade put money in their pocket on Day One of their trades, every single time.

Selling is a low-risk option strategy and a low-risk way to generate high monthly income and a great entry point to purchase stock at a lower price.

Here are several things to consider:

When you sell an option, you are collecting the cash up-front.  You are already ahead.

When you sell an option, you are transferring risk to the buyer.  Yes, when you sell options, you assume some risk but not to your capital.

This cash you collect upfront gives you the ability to manage the position – you have cash in hand to “close” or buy back the put or call, at a profit or loss, without using any or a good deal more capital.  This enables you to conserve capital, the basis for regular monthly income.

And accepting cash enables you to create targets for your positions.   The sum of these targets, when set properly, gives you a target income for the month … and that is what this is all about.

And selling puts let’s you decide the entry price when buying stock.  For example, you can sell a put to purchase a stock that you will sell covered calls against when it is put to you.  Then, you sell monthly calls until the stock is called away.  Then, back to selling monthly puts to re-enter the stock.  Rinse and repeat!  Over and over in the stocks that you want to generate monthly income.

Selling puts is actually a bullish tool.  The advantage to selling puts over buying calls is evident in the math:  The odds of winning are significantly increased.  Many professional traders use the short put strategy to buy stocks at prices they want.  Nobody wants to pay the highest prices to own shares, but when the stocks pull back – and stocks always pull back – the market helps you to get in at a better price.

But what if you don’t want to buy the stock?  Don’t sell puts on stocks you wouldn’t want in your portfolio.  You will get taken out of the trade if the buyer wants to exercise their rights (to “put” stock to you at the option’s strike price), and those are the kind of stocks you probably want to own!

This is always the risk with short puts, but it’s hard to call it a “downside” when you end up owning a good stock at a great price.  Besides, even if you are assigned to take possession of the shares, you can always sell them on the open market.  In fact, you can often get out for a better price and, thus, a profit … and repeat the strategy, if you choose.   Better yet, if the stock goes up and your put gets assigned, just sell a covered call against the shares and you’ve just established a new position in your portfolio — and another way to profit!

We are focused on generating consistent monthly income by selling options for premium using low risk strategies. You can get FREE trades at getrichinvestments.com

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Income Opportunity for 40% Option Trade

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 40% annualized.

Stock: STMicroelectronics N.V., (STM) together with its subsidiaries, designs, develops, manufactures, and markets semiconductor products, and subsystems and modules worldwide. STM has strengthened its ecosystem through a Partner Program that connects customers with qualified technical specialists capable of strategically supporting their projects.

We have identified a bullish “Continuation Diamond” chart pattern. This bullish signal indicates that the stock price may rise from the close of $17.44 to the range of $20. The pattern formed over 114 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

STMicroelectronics has a current support price of 17.04 and a resistance level of 17.46 that has been broken this week.

A Continuation Diamond (Bullish) is considered a bullish signal, indicating that the current uptrend may continue. Prices create higher highs and lower lows in a broadening pattern, then the trading range gradually narrows after the highs peak and the lows start trending upward. The technical event occurs when prices break upward out of the diamond formation to continue the prior uptrend, which confirms the pattern.

Monthly Income Option Trade

Strategy: We have an opportunity to sell options for income with STM 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.

For medium risk option trade, look to sell an October 2017 17.5 PUT for about $0.80. This creates a return of 4.8% with 6 weeks to expiration.

For a conservative trade, you can setup a covered call trade. You can purchase 100 shares of STM and sell an October 17.5 CALL option for about $0.80.

We continue to identify winning option trades to generate income and to exit early as the stock bullish patterns moves prices higher.

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Monthly Income from Option Trade

Income Trade Opportunity in JP Morgan (JPM)

For subscribers, we have been selling puts on JP Morgan (JPM) for several months. We consider this a perpetual income play by selling options for monthly premiums. In fact, we have collected over $1500 in monthly cash during the past 6 months! This is a great way to create investing income that exceed the typical dividend strategy.

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 13% annual return.

Stock: JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management segments.

We have identified a “Continuation Diamond (Bullish)” chart pattern formed on JPMorgan Chase & Co (JPM on NYSE). This bullish signal indicates that the price may rise from the close of 93.11 to the range of 105.00 – 107.00. The pattern formed over 143 days which is roughly the period of time in which the target price range may be achieved.

JPMorgan Chase & Co has a current support price of 91.28 and a resistance level of 93.19.

The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 92.13 and 89.17). JPMorgan Chase is currently trading near its 52 week high reached at 94.51 on 06/07/17.

Strategy: We want to sell a cash secured put on JPM using the September 2017 92.5 PUT. For each 100 shares of JPM stock you buy, sell one Sept 92.5 PUT for a $1.35 credit or better. That’s potentially a 1.5% return in 41 days or 13.3% annualized return compared to a 2.1% annual dividend yield.

For investors wanting to take a long position in JPM, this lowers the stock price for entry as each premium received lowers your initial cost basis. You can continue to sell monthly put options until the stock is put to you. Then, you can sell covered calls each month for additional monthly income. And, you collect the stock dividend.

This is a great example of how investors can create monthly cash from these income producing strategies. This is an excellent way to create a side hustle income without consuming too much of your time each day. For others, they have built an income large enough to live on without being employed by the man. When your monthly income exceeds your living expenses, you have achieved financial independence.

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Income Option Trade for a 12% Return

In our Monthly Income Report, we look for opportunities to utilize option selling to generate consistent income. While we focus on selling cash-secured puts and covered calls on high quality stocks, we sometimes identify high return trades for increased income. These are stocks with positive confirmation and continuing chart trend based on technical analysis. This month we have identified a stock with a bullish technical indicator that has potential to generate a 12% return in only 40 days.

The option trade for monthly income:

Stock: CF Industries Holdings, Inc. (CF) manufactures and distributes nitrogen fertilizer, and other nitrogen products. The Company’s nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Its other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to the Company’s industrial customers, and compound fertilizer products (nitrogen, phosphorus and potassium or NPKs). The Company’s segments include ammonia, granular urea, UAN, AN and other.

The stock has pulled back from its February levels due to industry pricing pressures. Revenues are likely to rise 13% in 2017 and 6.9% in 2018, after falling 15% in 2016. We see steady North American fertilizer demand growth in 2017, but some pressure on prices. However, new production is likely to lead to increased volumes for CF in 2017. We think market conditions will start to improve with this earnings release as capacity additions slow and Chinese capacity reductions continue.

This stock has formed a diamond bottom pattern (Bullish), providing a target stock price for the short-term above $30 per share. We think the stock can hit the target price within 6 weeks or less. The price recently displayed stronger RSI and positive PMO movements signaling a new uptrend has been established. The Short-Term KST indicator has triggered a bullish signal by rising above its moving average.

Recent bullish option flow has been detected in CF Industries with 5,006 calls trading, 3x expected, and implied volatility increasing almost 4 points to 41.09%. Aug-17 32.5 calls and Aug-17 30 calls are the most active options, with total volume in those strikes near 2,500 contracts. The Put/Call Ratio is 0.22. Earnings are expected on August 2nd.

Sell PUT Option for Monthly Income

 

 

 

 

 

 

 

Strategy: 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.

Exit Trade: Be prepared to exit the PUT (buy to close) when the stock price moves above $30 to lock in profits. If not, there is a chance the stock may be put to investors. If this happens, then investors can sell covered calls for monthly income until the stock is called away.

This is a higher risk trade than we normally place in the Monthly Income Report. However, this is a nice setup with a high volatility play, positive chart technical confirmation and increased premium from selling options for monthly income.

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