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How to Sell Put Options and Collect 40% a Year in Income

Sell Put Options

Story Highlights


Income is the holy grail of investing.

I’m talking about investment income. It’s any profit you make through your investments or savings account. It can be in the form of dividends or interest payments.

And minimizing risk while collecting steady income is an investor’s dream.

With interest rates headed lower once again, this dream seems out of reach. But there’s one investing approach in the market that pays you to buy stocks.

I talked about it last week: selling put options. It’s Warren Buffett’s preferred way to trade options.

Now, you make a percentage income from your savings. But today, the average bank in the U.S. pays 0.9% interest on a savings account.

The strategy I’m talking about can help you generate 10% in income after just three months. That’s 40% in a single year.

There are hardly any investing approaches that generate that kind of return.

That’s why, when I gave a presentation about this strategy at our Total Wealth Symposium last month, I had people asking me if it was real.

It is.

And today, I’m going to highlight my No. 1 rule to help you unlock 40% gains a year…

The “Own It” Rule Creates a Win-Win Scenario

To begin collecting 40% a year, it’s just as simple as following the strategy I showed you last week.

You’ll be getting paid to possibly buy a stock. That’s the best thing about selling put options. It’s less risky than buying a share of stock.

I use a three-step method to ensure I place perfect trades each time.

The first step is the most important, and it’s the one I want to share with you today.

Because this is where investors mess up when they sell put options. They pick risky stocks that they don’t care for, just to try to collect a huge amount of income.

That’s the wrong approach.

If a stock meets this one rule, it creates a win-win scenario for you.

I call it the “own it” rule.

The risk when selling a put option is that you end up owning the stock. That’s why you only sell put options on stocks you want to own.

Then, if the trade goes south, the worst-case scenario is that you end up owning shares of the stock at a loss — and you got paid to do so.

Either way, the income you collect is yours to keep.

Now, to achieve the 10% gains, you have to focus on a certain kind of stock.

These stocks won’t be blue-chip companies. While I love implementing this strategy on blue-chip companies, those returns are around 3% per three months.

If you want 10% in three months, we have to focus on the companies of the future.

Companies that are innovating at breakneck speed.

You want to add exposure to those companies in your portfolio today, because they are creating the future.

It could take years for mass adoption — when the majority of people use a company’s services or products in their everyday lives — to occur, but that’s OK.
To get an idea of how lucrative this strategy could be for you, think how far Apple Inc. and Microsoft Corp. have come over time … and how far their stocks have climbed.

By implementing this strategy today, you’re starting to get paid to build a position in the company.

Heck, you could pull a Warren Buffett and end up collecting enough in income that you can use those profits to buy the stock outright after a few years.

My point is that if we target stocks we love and are excited about their future, then collecting income becomes a no-brainer opportunity.

Grab Your Next Winner Tomorrow!

By following this one rule, we are creating a win-win scenario.

I’m willing to bet there are opportunities you are missing out on.

Maybe you are still paying market prices for stocks or are forced to chase stocks higher because you didn’t know about this strategy.

At the Total Wealth Symposium, a gentleman — let’s call him Robert — came up to me and thanked me. He told me he felt that listening to my presentation actually paid off.

Robert placed an order to sell a put option on September 13, to collect $900 on two contracts.

It was on a stock he wanted to buy. He loved the outlook for the company and believed in the industry it’s in.

Selling put options on this stock was a no-brainer for him.

Robert made the easy decision to get paid to possibly add exposure to this innovative company. And whether he owns the company or not, he gets to keep the income he makes on this trade.

It’s that simple.

Tomorrow, I’ll release a new opportunity that yields more than 10% in just three months. It will have you well on your way to collecting 40% a year in income.

Click here to learn more about this strategy. Sign up today, and get the first trade that will pay you 10% in income by the end of the year.

Regards,

Chad Shoop, CMT

Editor, Pure Income

P.S. Watch my last video to learn more about how to use my strategy and trade stocks like Warren Buffett. And check out my YouTube channel. Hit the subscribe button so you won’t miss any of the weekly content I post.

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