Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘Side Hustle’

How to Capture a 50% Return During a Market Correction

Many investors have a belief that it is impossible to make income selling options during a market correction. I am here to show you how my subscribers have continued to sell PUT options during the recent market downturn. With the market down over 1,000 points? What are we crazy to take on this risk? Here is the trade we offer up as an example.

My subscribers entered a PUT option trade on WK (below) by selling22.5 PUT options with a February expiration. We entered the trade on January 19. In comparative terms, the SPY was around 280 at this time but fell to 255 in just three weeks. However, WK had increased to $23.50 or so at this time and finished the expiration over $25 per share.

This was a big win for PUT sellers as we captured a 4.2% return during a 10% market correction. This is a an annualized 50% return on a monthly income trade. And proof you can make money selling options in a down market. Our strategy is to identify stocks with upward price momentum that we can earn option income with an early exit point to compound returns.

 

 

 

 

 

 

 

 

Sell Put on Workiva (WK)

STRATEGY: Look at the February 2018 22.5 cash-secured put trade. For each 100 shares of WK stock you want to control, sell one February 22.5 put option for a $0.90 debit per option or better. That’s potentially a 4.2% return on the cash-secured put trade.

A “Symmetrical Continuation Triangle (Bullish)” chart pattern formed on Workiva Inc (WK on NYSE). This bullish signal indicates that the price may rise from the close of 22.10 to the range of 24.20 – 24.80. The pattern formed over 46 days which is roughly the period of time in which the target price range may be achieved. Workiva Inc has a current support price of 21.45 and a resistance level of 22.10.

**************************************************************************

Learn To Make Monthly Income Trading Stocks And Options. Related: Stock Market, Trader, Trading, Investing, Investor, Investment, Option, Currencies, Currency, Swing Trading, Day Trading, Futures, Forex CLICK HERE

*************************************************************************

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

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

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

Close This Trade for 450% Gain

2/1/2018 – MOD closed at $24.30 per share today. Buy to close the MOD 22.5 PUTs at $0.20 per contract.  This is a gain of $0.80 per option in 3 trading days. This is a 3.7% gain or 450% annualized return.

1/29/2018 – Get Rich Subscribers Release (NEW 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 more than 93% annualized.

Stock: Modine Manufacturing Company (MOD) develops, manufactures, and markets engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer vehicular applications.

The RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 21.53 and 21.73).

Chart: We have detected a “Symmetrical Continuation Triangle (Bullish)” chart pattern formed on Modine Manufacturing Co (MOD on NYSE). This bullish signal indicates that the price may rise from the close of 23.25 to the range of 26.70 – 27.50. The pattern formed over 43 days which is roughly the period of time in which the target price range may be achieved. Modine Manufacturing Co has a current support price of 21.15. No resistance level has been found.

Strategy: We have an opportunity to sell options for income with MOD 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 a February 2018 22.5 PUT for about $1.00. This creates a return of 4.6% to expiration (18 days) or greater than 93% annualized.

For a conservative trade, you can setup a covered call trade. You can purchase 100 shares of MOD and sell a February 22.5 CALL option for about $1.75 for an assigned return of 4.6% in 18 days.

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

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

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

Why Sell Covered Calls?

Sellers of covered calls seek two objectives: additional income from their stock portfolio and protection from a market decline in the price of their stocks.  The call premium helps the option writer to achieve these goals.  With the covered call strategy, you can use stocks you already own or you can purchase new shares to sell covered calls on.  In either case, you will not be overly concerned about the the price movement of your stocks over a period of time.  However, you will only write covered calls on stocks you already own.
 
We can apply this call writing strategy to dividend paying stocks.  You will be getting two sources of income: the dividends and the premium you received from selling the calls.  In addition, there is potential for a third source of income if the stock were to increase in price.  If we were to allow the stock to be called away, we would receive the strike price in addition to the premium and dividends.  This is an outstanding scenario where you can potentially receive three sources of income from one investment!

However, the call writer does not have to remain obligated to deliver the stock.  The writer can terminate the obligation if it has not been exercised by purchasing to close an identical option at current premium price.  Also, if the option is exercised, you do not have to deliver the original stock as you can purchase new shares to fulfill your delivery obligation.

When you write a covered call, you still own the stock and can receive all dividends paid before the options expire.  When you sell options, you begin with an immediate profit rather than an uncertain potential gain.  The most you can make is the premium received and the price of the strike minus your cost of the purchase of stock.

There are always opportunities for investors to use options are part of their total investing plan.  With careful stock selection and monitoring of your position, selling options can:

    • Boost annual income by 15 percent or more;
    • Be used for tax benefits and low costs;
    • Offer a variety of choices such as the underlying stock, strike prices and time periods.

The best rule: never buy options, only sell them!  Buying options is speculation while selling options is investing.

Some income services charge $2,000 – $5,000 per year to subscribe.  These guys are getting rich from subscribers – not providing a cost effective service.  There are no gimmicks, no bait and switch or added fees.  You will be charged monthly with no required annual subscription.  We are convinced that you will like the quality of service and continue to make monthly income. You will create a new stream of monthly income with our service.

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

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

Why You Need Multiple Streams of Income

As we all know, when you work for an employer your time is not your own.  You are trading your time for income from wages.  Your vacation dates will likely be ruled by your employer.  While there is nothing wrong with working for a living, you should start preparing today for what you need in the future.  You can start investing for income part-time while you are still working for the man.
 
Here are some financial lessons to keep in mind when preparing for your future:

  • No matter how good you are at work, you are expendable;
  • The term job security can be an illusion;
  • You are not likely to get rich working for someone else;
  • Nobody cares about your money more than you do;
  • Social security may be restructured or may not be available when you retire;
  • The company pension is quickly if not already going away.

The list above is proof that you should seek multiple streams of income.  You should consider adding a 401K and/or IRA to supplement your waining social security checks.  The safest income streams are saving accounts and certificates of deposits both of which are best for emergency cash holdings.  Beyond this, you should start to think about additional income streams.  The obvious choices are dividend paying stocks and close-ended funds because they tend to be passive income.  Next, I would suggest you begin to learn how to sell covered calls against some of your dividend stocks or other stocks with potential to create additional income.  If you get good, you can advance to more difficult option strategies for another source of income.  You can even move into real estate investing to diversify your assets and create more monthly income.

One source of income is just not enough in today’s society.  Each of us should take the initiative to learn how to create additional income streams by using your assets rather than your time working for an employer.  The end result will be more income streams, more financial security and more time to do the things that make your life more enjoyable to you and your family.

Here, we sell options, covered calls and cash-secured PUTs, to create multiple streams of income while investing in CEFs paying monthly dividends.

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

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

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.

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

Follow us on Twitter – @GetRichStayRich

You Can Help End Poverty

Get Money for Nothing and Your Stocks for Free

Covered calls generate income through call premium received and lowers the risk in the underlying stock position.  Obviously, the risk of owning a stock is the price you paid to purchase the stock.  Anytime the stock drops below the price paid to purchase the investor is now in a losing position.  If you purchase a stock that pays dividends, then dividends collected lowers the purchase price of a stock.  For example, you purchase FirstDividend stock (fictional name) for $30 that has a 3.0% dividend yield.  The dividend will be $0.90 per year or $0.23 per quarter. After the end of year one, your adjusted share price in FirstDividend will be $29.10 ($30-$0.90).  At a yield of 3.0%, your investment will double in 24 years just on the dividend without an increase in share price.

Now, let’s add a covered write to the stock each month.  For example, you can sell a $31 call at $0.75 that expires in 30 days.  Assuming that we don’t get called out, this will total to $9.00 at the end of year one if we continue to sell a call each month for the $0.75 premium.  This will drop the adjusted share price from $30 to $21 or 30% less than the price paid excluding your dividends.  This will double your investment in First Dividend in 2.4 years based on the call premium received each month.

If you combine the call premium with the dividend, then the adjusted stock price will be $20.10 at the end of year one.  This will further lower your time to double to 2.18 years.  This means that at the end of 2.18 years, you will have your total investments returned to you excluding any share price change or dividend increases and still own the stock.  This is a great benefit of selling calls against the stocks you hold in your portfolio.  In the first year alone, you will have received $990 in income for each 100 shares of stock you own.

The trade-off in writing calls against stock you own is that the topside is capped at the strike price of the call sold.  Therefore, you are at risk of selling your stock at the strike price which limits potential upside share price appreciation.  This should not be a problem for the investor that is seeking monthly income.  You must commit to writing calls for monthly as your chosen strategy to make monthly income and not be concerned that the share price will increase in a month.  Of course, if the stock gets called away then you can sell puts to get back into the position.  The put premium will serve to lower your adjusted share price just like the call premium in the example above.

You can continue the income cycle by selling puts to buy stock then sell calls when you own the stock.  Each month you are lowering your adjusted purchase price until you get your investment back and have a $0 cost in the stock.  All the while you are creating monthly income from your investment.  The end result is that you get your money for nothing and your stocks for free.

We continue to identify winning option trades to generate income and to exit early as the stock bullish patterns moves prices higher. Try our monthly income plan as you will definitely enjoy the extra cash.

Follow us on Twitter – @GetRichStayRich

Join the Monthly Income Newsletter voted the best value for option income trading including high return income trades.

You Can Help End Poverty

Factors Affecting Option Prices

While there are many factors that determine option prices, stock option premiums move in unison with the underlying stock price.  The most popular method for determining option value is the Black-Scholes Model.  There are six factors in this model:

  1. Stock price is the most important factor in an options price as changes in stock price affect the price of options on the stock;
  2. Strike price has an affect on option price through intrinsic value, time value, delta and other factors;
  3. Time to expiration is the time remaining before an option expires.  Due to time decay, option values can decrease at a faster rate when the option is closer to expiration;
  4. Stock volatility is the standard deviation of a stocks price variations over a fixed period of time.  The more volatile the stock, the more likely its price will move and the option price will increase with high volatility;
  5. Interest rates have little affect on option prices but they are part of the Black-Scholes model;
  6. Stock dividends also have little affect on option prices since they are already included in the stocks price by market forces.

There are other forces that can affect the price of options that are not included in the Black-Sholes model such as:

    • Supply and demand for the stock
    • Liquidity or volume of the option
    • Markets expectation of future events such as earnings, etc.
    • Markets expectation of future price direction of the stock

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.

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

Follow us on Twitter – @GetRichStayRich

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

You Can Help End Poverty

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.

Join our Monthly Income Newsletter to get this trade and many other income trades.

Follow us on Twitter – @GetRichStayRich

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

You Can Help End Poverty

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.

Follow us on Twitter – @GetRichStayRich

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

Subscribe for FREE Trades

Subscribe for FREE Trades

* indicates required
/ ( mm / dd )
Archives