Entry-Level Income Strategy Beats Dividends Almost Every Time
I’m fortunate to have spent time in the Army, especially working in intelligence gathering.
If you’ve served, you know that teamwork is one of the core values of the Army. You never leave anybody behind.
I apply this same thinking to the markets (and life in general). I figured if I could learn and understand the markets, I could help my friends and family save for retirement and avoid catastrophic losses.
When I began applying my military training to the markets, I realized that I was in a unique position. I could use my analytical training to improve upon the most profitable investment strategies.
And that’s exactly what I’ve done.
I started researching and writing about options. I worked with expert stock traders and read countless books.
Before long, my work was featured in major trading publications, such as Technical Analysis of Stocks & Commodities, Stocks, Futures and Options (SFO) and a UK trading magazine called Shares.
Soon, I not only replaced the income from my previous military position, but exceeded it by 30% using options. And both my income and net worth continue to grow to this day thanks to my ability to spot hidden opportunities.
But even more importantly, I’ve helped countless friends, family members and other traders understand how the markets work and how to make extra income using options.
Don’t worry, if you’re not familiar with options. That’s OK. I use an entry-level options strategy anybody can learn.
This has all been done through my premium advisory, Maximum Income, where my entire goal is to help traders generate extra income from their portfolio.
That means I am constantly on the hunt for ways to generate serious cash in this market.
I’m not talking about a few hundred bucks that you get once a quarter in dividends from shares of Exxon Mobil (NYSE: XOM) or General Electric (NYSE: GE). I’m talking about proven strategies that could help you rake in thousands every month.
So how am I doing this? Through an options strategy called covered calls.
Let me give you an example from one of my recent trades to show you how it plays out in real life.
I sent an alert to my readers telling them about International Game Technology (NYSE: IGT). Most people have never heard of it, but it’s one of the leading providers of slot machines.
Based on my analysis, I saw a golden opportunity to generate income by applying my options-income strategy.
First, I recommended investors buy shares of IGT for $15.88 on June 17 (if they already owned shares, they didn’t need to buy more as long as they held at least 100 shares). Based on 500 shares, this would have required a total investment of just $7,940.
Then, I told them to enter into a special agreement. I told them to agree to sell their shares if they hit $17 by July 19, roughly a month later.
This would allow them to collect an immediate payment upfront. Then, if the share price moved from $15.88 to $17 within a month, they would sell their shares and pocket the capital gains — in addition to the payment they already received.
Let’s look at how the trade worked out.
My readers received an upfront payment of $290. That was the “premium” — the options payment I’ve been talking about.
Then, sure enough, within a month the share price began to rise. By July 19, IGT surpassed $17. My readers sold their shares and locked in an additional $560 in capital gains.
But that wasn’t all. While we held shares, IGT paid a dividend of $0.11 per share. That gave my readers another $55.
Between the premium, dividend and capital gains, this trade delivered a profit of $905 in a little over a month from an investment of $7,940. That’s a return of 11.4% in 32 days — a stunning annualized return of 130%.
Now, you may be wondering, what if the share price hadn’t hit $17? What if it had ended up at, say, $16?
That’s just fine. If the share price doesn’t rise, we can collect more than one options payment. We would simply place another trade and collect more income, over and over again, every six weeks or so.
This extra income can amount to a few hundred or few thousand dollars per trade.
So far, my readers and I have collected an average options payment of $600, based on owning 500 shares per trade. Imagine what an extra $600 every few weeks could do for your portfolio or lifestyle.
Unfortunately, most investors don’t realize how large an opportunity this is. As a result, they’re settling for puny 1% or 2% annual yields from blue-chip stocks.
I want to change all that today. I want to show you how you can access this strategy to capture your first payment in as little as 48 hours. That’s why I’ve put together a brand-new special report called Using Options Payments to Earn Thousands in Monthly Income.
It’s the perfect introduction to my service, and it walks you through my system. But beyond that, it links you to my latest opportunity. To get your hands on this report, simply go here.