Put Options: An Important Investment Strategy for Generating Income
Rush over to your bank and lock in those “high” yields today. From here on, rates are heading lower.
This is a partial joke.
It isn’t a dire warning, because getting a bank Certificate of Deposit (bank CD) yields just around 1%. That’s the national average for a one-year CD.
Now, this is not something you will miss.
But the signs are clear. Low interest rates are here to stay.
I know income can be a boring subject.
After all, there’s nothing to get excited about if you think the best you can do for income is just a 1% yield.
Lucky for you, I have been perfecting a way to generate yields as much as 15 times that amount. And you can too.
But first, let me explain why income, or the lack of income, is the most important investment for you to focus on…
Offset Banks’ Low Interest Rates With This Strategy
Watch my video below to learn more about how to offset low interest rates.
Rates were pinned at historic lows from 2009 to 2015. It has been a slow and gradual climb higher since 2016.
With rising rates came hopes they would one day generate yields of 5% or more from your savings account at the bank.
After the four quarter-point interest rate hikes we saw in 2018, we were on our way.
But the Federal Reserve pulled the plug on all hopes for a higher interest rate environment at their last meeting on June 19.
You can see what I mean in the chart below:
Interest rates have been trending lower for decades, and now they are set to head lower once again.
The Federal Reserve didn’t cut interest rates, but they indicated there would be a rate cut before another rate hike.
That’s the last thing income seekers wanted to hear.
Right now, a one-year bank CD yields just 1%. This is a far cry from the hopes of getting back to a 5% level. And the Fed’s intent is to lower interest rates even more.
We aren’t heading back to those glory days of generating a meaningful amount from traditional sources of income.
And your hunt for yield remains your most important investment decision.
Growth opportunities are always going to be there. But if traditional income sources aren’t offering any sizeable yield, you must offset that with a conservative approach to generating income.
If you are not doing that, then you are likely taking too much risk investing it all in the market. Safe, reliable income should make up a portion of your portfolio, and that portion should increase as you get older.
If you’re a conservative investor to begin with, income may be 100% of your focus. But you can’t rely on the traditional sources.
That’s why I wanted to share with you my No. 1 income strategy today.
Put Options: Your Income-Generating Strategy
My strategy is selling put options for income.
Now, if you’ve never heard about it, or you have heard options are risky, don’t worry. This is as simple as trading stocks in the market.
If you can trade stocks, you can trade options. Options will generate a stable and consistent source of income — while taking less risk than owning shares of stocks.
All I ask is that you give it a try.
I’ve helped thousands create a new source of income with this strategy. And many of my subscribers are off doing this on their own every month to generate yields that can easily top 15% in a single year.
Now I want to help you boost the income in your portfolio.
Think of it this way: If your income portfolio is generating more than 10%, then you don’t need to offset it.
But, if it is stuck yielding anything less than 10%, then I encourage you to check out selling put options for income.
You can click here to learn more about this unique strategy.
Chad Shoop, CMT
Editor, Automatic Profits Alert
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