How I Closed 105 Trades Without Losing a Cent
One of the best income strategies in the world involves a market most people ignore. It allows individual investors to generate income from the best companies in the world — often without even having to buy shares.
I’ve been recommending trades in this market for three years and so far the results have been astounding. Each of the 105 trades I’ve closed has been a winner.
I don’t want to beat around the bush or make this sound like some super-secret investing strategy only I can tell you about. I am talking about selling options.
Now, before you decide you never want to try options trading, let me show you what a recent subscriber to my Income Trader newsletter, which focuses on selling put options, had to say about my strategy:
“When I first started using [Amber’s] picks, my goal was to earn $500. Then I quickly realized I can earn at least $1,000 per month. I use the profits to buy more… Not only are your picks excellent with low risk, it teaches you to look for other options on your own, which I have done.”
— Nathan S., West Long Branch, N.J.
With this strategy, we collect the income upfront without paying for shares. If the stock in question goes up or simply doesn’t fall past the price we specified (known as the strike price), that money is pure profit.
While I probably won’t have a perfect record forever, every trade we’ve closed so far has been a winner. (You can review all my closed trades here.)
If you add up the income from every trade I’ve closed since I started Income Trader in February 2013, you could have pocketed a tidy $8,456 in extra cash, just by selling one put contract per trade recommendation.
Had you sold 10 contracts on each of my recommendations, you could have made $84,560 — or an extra $2,693 a month. That kind of money can really help you build up your retirement nest egg or simply live a more worry-free life.
So what’s the downside risk? Well, you may wind up having to buy shares of the underlying stock if they fall below the strike price.
For example, let’s say a stock falls 8% in a single day due to an earnings miss. Assuming shares fall below the option’s strike price, investors that sold puts might be required to buy the stock for more than its current price.
That is why my risk analysis goes beyond the option trade and into the companies themselves. I always make sure that we are selling put options on stocks we wouldn’t mind having in our portfolios.
This means we get the opportunity to buy shares of a company we want to own anyway — just at a lower price than the market was offering when we sold the put. We even know the price upfront before we enter the trade.
Of course, this does not happen often. In my experience, more than 85% of options expire worthless, meaning we don’t have to buy shares, and the instant income we receive when selling the puts is pure profit.
In fact, many of my readers have already generated $6,000… $19,500… even just under $150,000 in instant income.
That’s why — after three years of listening to my Income Trader subscribers rave about how much money they were making selling options — Profitable Trading customer service rep Emma Anderson decided to give it a try herself. (You can watch her story here.)
Now, Emma is no trading expert. She’s a 32-year-old archaeology major. And in just a few short minutes, she was able to make $274 in her first ever trade.
If Emma can do this, so can you. To see just how easy this is, I encourage you to watch this video.