Generate Double-Digit Income as Investors Panic
About a year ago, I set out to find a winning income strategy — a strategy that can generate “Instant Income” in any market environment.
From July 2012 to January 2013, I put my strategy through a rigorous test to prove my system worked in real-life trading scenarios. The results were even better than I expected. My strategy generated thousands of dollars in income with an 84% win rate.
Since then, I’ve launched a newsletter service to help traders like you navigate options, and the results are even more impressive — every single trade I’ve closed has been a winner. That’s one winning income trade a week since Feb. 6. You can see all 16 closed trades here.
My “Instant Income” strategy allows investors to do two things: earn large amounts of income and buy high-quality stocks at a deep discount. Either way, it’s usually a win-win.
My strategy involves selling puts on undervalued, high-quality stocks. It’s a strategy that allows you to generate what I call “Instant Income,” because when you sell a put contract, money is immediately deposited into your brokerage account — money you keep no matter how the trade turns out.
It’s one of the smartest, highest-percentage winning strategies in the financial world.
To recap, put options give investors the right — but not the obligation — to sell a stock at a specified price before a specified date, known as the expiration date. Selling a put obligates us to purchase that stock from the put buyer if it falls below a specified price, known as the option’s strike price. When we accept that obligation, we receive cash, known as a premium, or what I call “Instant Income,” upfront.
And even during the volatile month of June, when we saw the S&P 500 fall as much as 7.5% from its peak, every put I sold with a June expiration date expired worthless, meaning the income we collected from selling those puts is pure profit.
And although the market has been volatile lately — the CBOE Volatility Index (VIX) is up 16% in three months — I’m not concerned. In fact, higher volatility allows me to generate even more income.
You see, option prices are determined by several factors, including the underlying stock’s price, the exercise price and the amount of time until the expiration date.
But one major pricing factor that is a little more complicated is volatility.
We can get a general idea of whether volatility is high or low by looking at the VIX, also known as the “fear index.” The VIX tends to rise as the market falls and traders become more anxious. On the other hand, when market prices rise, the VIX tends to decline.
That’s great news for followers of my “Instant Income” strategy, because we are sellers of options, not buyers. We want them to be more expensive. That makes it easier to find options that deliver a lot of income. And I’m taking advantage of the spike in the VIX to collect even more income while I can.
Selling puts during times of high volatility is the ultimate way to be greedy when others are fearful. When most investors are panicking, options sellers can take advantage of the opportunity by selling expensive options and generating thousands of dollars in “Instant Income.”
Using this kind of strategy has never been easier, and once you get the hang of it, you can use it on thousands of stocks. As I mentioned, every single one of my trades so far has been a winner. If you’d like to learn more about my “Instant Income” strategy, you can watch a presentation I put together here.