As we approach the end of the September option expiration cycle, the Get Rich Monthly Income Plan had a great month for investors.
In January, we kicked off the perpetual covered call strategy. For those who are new to this concept, let me share the rationale of this income investment. This strategy was created to produce monthly income with stock dividends and covered call premium. In addition, there is a protective, blanket put, to ensure the volatility in the market does not affect your return of capital.
We will be adding one new perpetual covered call each month to keep fresh ideas on the table. We will follow the progress of the perpetual covered calls each month the year. I will email premium members with trading directions when an action is required. Here are some of the results for 2012:
Perpetual Covered Call Returns:
Stock 1 – Oil Company has an YTD total return of 153% including dividends and special dividends.
Stock 2 – Drug Store Company with an YTD total return of 68.1% including dividends.
Stock 3 – Technology Company with an YTD total return of 27.3% including dividends.
Year to date, the SPY (S&P 500) is up 16.1% and the Powershares S&P 500 Buy-Write (PBP) is up 8.16%.
We also provide a list of stocks for monthly covered calls. Here we change the list each month based on investing in the right stock for monthly income. For the September option cycle, this was a great month for our Monthly covered call trades.
We made monthly returns of:
7.83% on GME,
6.91% on LAD,
3.8% on COH, and
3.4% on PSX,
We have added the covered put trades as an additional way to sell premium and to enter stock positions. I frequently sell puts to enter a new stock position because (1) I get the stock at a lower price than it is trading at the market. (2) I get to produce income from the premium I receive when selling the puts. If the stock is above the put strike price at expiration, I keep the premium and have the opportunity to sell more outs or just purchase the stock cheaper because I have the put premium to cover partial costs. I have used this technique for several months on the same stock before I get the stock put to me. This creates enough income to really lower the total cost of the stock. Then, when the stock is put to me, I sell calls (covered) to earn more income until the stock is called away. Then – rinse and repeat.
For investors wanting to create monthly income, the Get Rich Monthly Income Plan is right for you. Click here to learn more.