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Are you looking for a new way to generate passive income? It's time for a little thread about one of the less risky options strategy
2/7
It's called the covered call.
Here's what you need to do:
buy 100 shares of a single stock
sell 1 call.
Don't worry for commissions, it can be done in one single order.
It's called the covered call.
Here's what you need to do:
buy 100 shares of a single stock sell 1 call.Don't worry for commissions, it can be done in one single order.
3/7
You can choose to sell weekly calls so it generates weekly income.
Let's say you buy 100 shares of XYZ at $40 and you don't think it will be higher than $45 next week.
You decide to sell a call at stike 45 with expiration in 7 days to get a premium.
You can choose to sell weekly calls so it generates weekly income.
Let's say you buy 100 shares of XYZ at $40 and you don't think it will be higher than $45 next week.
You decide to sell a call at stike 45 with expiration in 7 days to get a premium.
4/7
If you are right, you keep the premium and the shares.
If at expiration the price of XYZ is above $45 you will be obligated to sell your shares at $45.
If you are right, you keep the premium and the shares.
If at expiration the price of XYZ is above $45 you will be obligated to sell your shares at $45.
5/7
In both cases you keep the premium.
In the second case even if you sold your shares you still benefit from the price rise from $40 to $45!
In both cases you keep the premium. In the second case even if you sold your shares you still benefit from the price rise from $40 to $45!
6/7
That's a good way to generate income with your current stocks.
@BusinessFamous did a great job explaining the strategy in detail here: http://bit.ly/TurboDiv
That's a good way to generate income with your current stocks.
@BusinessFamous did a great job explaining the strategy in detail here: http://bit.ly/TurboDiv
7/7
If you want to learn more about options in general, this bundle includes 'Intro to options', the best resource to get started: https://gumroad.com/a/898110579/xMDOW
If you want to learn more about options in general, this bundle includes 'Intro to options', the best resource to get started: https://gumroad.com/a/898110579/xMDOW
