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 …
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. …
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 …
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 …
Option open interest is the number of options contracts open in a specific option series. Open interest serves as a measure of option liquidity in the underlying option series. The higher the open interest, the tighter the bid/ask spreads will be so slippage in trades will be lower. When looking at option series, you want …
