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My Favorite Income Strategy Has a 97% Win Rate

We can apply this strategy over and over to generate a steady stream of income regardless of what is going on in the broader market environment.

How to Sell Put Options for Extra Income - Chad Shoop & Matt Badiali

“How do you invest your own money?”

It was probably the most common question I got over the last few days.

I’m still recovering from jet lag after our very packed Total Wealth Symposium in Las Vegas.

Everyone had a great time. It was great to be able to talk with many of you about the biggest opportunities we see in the markets right now.

A common question was how do we, as editors of these trading strategies, invest our own money.

It’s a valid question because we can’t own the recommendations we give you.

But we are all still investors at heart.

So I told everyone about my favorite income strategy that I use in my own account.

Unique Income Opportunities

It’s selling put options.

And even though I also buy stocks, my favorite income strategy remains selling put options.

In my Pure Income service, I’m able to share some of these unique income opportunities with you.

And to stay compliant with our company policy of not owning our recommendations, I only sell put options on stocks that are thinly traded.

This allows me to have personal trades to make, while still giving you all the absolute best income opportunities I can find — and it’s worked great.

In Pure Income, we have a 97% win rate since inception six years ago.

Here’s how we do it…

A Win-Win Scenario

If you don’t know anything about selling put options, here’s a quick summary.

Basically, we are selling put options on a stock to collect income. We select a strike price below where the stock is trading because our risk is that we may end up owning shares of the stock.

However, I never sell puts on a stock I don’t mind owning. That’s my No. 1 rule. I call it the “own-it” rule.

And as long as the stock meets this rule, it makes this strategy a win-win scenario.

Essentially, you get paid to possibly buy shares of a stock that you already would love to own.

But we rarely end up owning the stock.

Instead, we apply this strategy over and over to generate a steady stream of income regardless of what is going on in the broader market environment.

Regards,

Chad Shoop, CMT

Editor, Automatic Profits Alert

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