Site icon Banyan Hill Publishing

Selling Put Options Is Complex But Lucrative

Make Wall Street Your Personal ATM with put options

When I spend time analyzing charts or reviewing spreadsheets at home, my 6-year-old son will come by and glance over my shoulder.

He leans in and asks me to explain what I am doing. But when I try to explain it, the concept is out of his grasp.

You can’t blame him though. I get the same reaction from my wife, Shannon, who holds a bachelor’s degree in business administration.

Considering this is what I do for a living, I took time to explain it to my wife in a way she quickly understood — how I am able to generate instant cash for my readers over and over again.

As for my son, I think I’ll have to give him a few more years before he fully understands it.

But I believe the simple concept that I shared with my wife could help you collect thousands in cash as early as next week.

For my service, Pure Income, I utilize a strategy that most people have never heard of … and for the ones who have heard of it, most are wary due to misinformation and bad advice.

Today, I want to focus on one simple task — helping you understand my strategy and its benefits.

After all, this is one of the only ways to instantly collect cash from Wall Street on a consistent basis, and I don’t want you to miss out on that opportunity.

To help you understand, let’s turn to a real-life example that resembles my strategy — the insurance industry.

Let me explain…

Selling Portfolio Protection

The insurance industry has generated billions in profit from the monthly premiums you and I send them, all in the name of protecting us financially from worldly hazards.

Even though we know these hazards rarely occur, we also know that one will inevitably happen, whether it’s a car accident, house fire or another unexpected occurrence.

That’s why we continue to pay insurance companies thousands a month to protect us from these hazards — so we can be insured at all times.

The insurer pockets those premiums, and doesn’t pay out until a hazard takes place.

My strategy on Wall Street is designed with the same profit-generating idea.

Acting as a pseudo “insurance salesman,” we collect instant premiums from investors that are insuring portfolio positions, by selling them out-of-the-money put options, or the right to sell us a stock at a price (or strike) much lower than the stock’s current valuation. Investors use put options to protect open positions in their portfolio. When they purchase put options, they are essentially limiting their losses in the event of a correction or crash in the stock — a hazard in the stock market.

There are literally thousands of options available for you to sell and pocket the premium from at any given time.

But, as a regular insurance company has to pay out when an accident occurs, so too are we on the hook — but not in the form of damages.

Selling Put Options: Wall Street’s ATM

See, unlike a normal insurer who protects physical goods, on Wall Street you are insuring against market value.

If market value falls below a certain level, we are simply agreeing to take that particular stock off somebody’s hands and own those shares ourselves — but at a price that could be as much as 10% lower than it was when we sold the put options to begin with.

So, acting as an insurer on Wall Street, you get paid to insure against a downdraft that isn’t all that common. And when it happens, you simply own shares of the insured stock at a discounted price.

Oh, and by the way: The premiums you were paid … those are yours to keep.

My colleagues and I have prepared a new video report detailing exactly how this strategy works and why we are calling it “Wall Street’s ATM.”

To learn more about how you can collect thousands instantly from Wall Street, simply click here.

Regards,

Chad Shoop
Editor, Pure Income

Exit mobile version