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Editor’s Note: For the past two weeks we’ve been focusing on one single income technique that I believe every investor should be aware of: selling puts. When done correctly, selling puts are a way to drastically increase your income and decrease your overall portfolio risk.
Did you miss last week’s Sell Puts Training? Click here to watch now – it’s free (no registration required).
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Today I’d like to quickly review exactly how well this income technique works.
First, I showed how we’ve sold puts on an asset in a sustained bear market. From 2012 to 2015, gold was one of the worst-performing assets in the market.
During this time, I showed my High Yield Trader subscribers how to sell puts on the Van Eck Gold Miners ETF (NYSE: GDX) to earn 33% in income.
Click here to read exactly how.
Second, I told you about an ideal set-up for selling puts that you can take advantage of right now. One of the best times to sell a put on a stock or ETF is when it is near long-term lows.
When an asset’s price is super low, selling a put gives you the opportunity to get paid up front for the simple act of agreeing to buy it at an even lower price. In no other aspect of life do you get this kind of up-front payment for agreeing to buy something if it falls further in price.
Click here to read my full-write-up on how to trade this opportunity right now.
Third, in recent weeks I explained how to sell puts on an asset that you think will rise in price. If you’re bullish on an investment, it’s tempting to just snatch up as many shares as you can afford. But for two important reasons, I think it’s more prudent to sell puts first. Why?
- If you’re wrong about the asset’s movement and the price falls further, selling puts lets you lower your cost basis by collecting up front income. Then, you get to buy the underlying at the lower strike price.
- If you’re right about the asset’s movement, you collect the up-front payment AND you can sell puts again after expiration. Each time you sell puts, you’re lowering your cost basis. And if you sell puts each and every expiration period, eventually you will get put the shares.
Click here to read how to sell puts on an asset you’re bullish on.
So why have I been writing so much about a little-known options income strategy?
It is because I know that most investors will never sell a put. Most investors think options are some kind of risky lottery ticket. And the mainstream financial press is misinformed and disinterested in options.
After helping thousands of investors use this income secret, I’m convinced that you can start selling puts to generate income. Once you do, it will become your go-to investment strategy.
In my personal investment account, I never simply buy a stock. I ALWAYS use a put-selling strategy. In fact, this has become a cornerstone of everything I do at Wyatt Investment Research.
Please accept my invitation and test-drive my put-selling strategy. You can do it right now, 100% risk free.
You must respond before tomorrow (Thursday) at midnight. Only 20 new members can be enrolled ̶ and I’d like to include you in this very special situation.
Click here to see the details.