What I share with you in this report is going to be one of the greatest wealth secrets today…
It’s what elite investors do to generate more income with less risk … without ever having to own a stock, while keeping more money in cash to avoid market crashes.
This is going to be a game-changer for you.
These trades let you instantly collect large amounts of cash, while using safe publicly traded companies without having to buy a single stock, bond, or option.
At first, you’re probably going to balk at the idea with skepticism like others have.
I dare to say, this type of transaction is actually seen to be safer than buying stock.
Most investors have no idea how it works, but some of the richest and most successful investors have been using it to generate billions of dollars.
This Transaction Is Known As Selling A Naked Put.
Selling naked put options is one of the greatest moneymaking strategies investors like you and I have access to.
You’re probably thinking … options … no way Jose.
I know that you probably love buying and selling stocks … it’s easy.
Hell, even one of the greatest investors in the world, Warren Buffett, called derivatives a “time bomb.”
Well you know what they say right?
People Lie, But Money And Numbers Don’t.
Ironically, the oracle himself has been utilizing this very strategy, which I’ll share with you, to make billions!
So hear me out until the end, I promise it will be worth it.
I get it … when most investors, who play it safe and seek income, hear the words “stock options,” they think of risky bets on volatile moves in the stock market.
Maybe you’ve given them a go … maybe you’ve made some money … lost some money … but never made any really progress with them.
I hear you … and unfortunately most people use options the wrong way … but after you read this report you’ll be miles ahead of them.
I’m going to show you research with real statistics that you can take to the bank. I’ll show you how these trades work and share specific steps to follow, which can help you consistently use this strategy, while incurring very few losses…
I’ll teach you exactly how to use stock options to drastically reduce your risk in the market … while increasing your returns and generating more income.
I’m not going to scare you and start talking to you about option greeks because, you actually don’t need to know them to safely use options.
Before we go any further, let’s make sure we are on the same page. A stock option is a contract that allows two parties to trade the right to buy or sell shares of stock.
While you can trade stock options using a variety of strategies using call and put options … in this report, we’re only concerned with one kind of option – a “put option.”
When it comes to stock options … there are rights and obligations.
When you buy a put option, you have the right – but not the obligation – to sell a particular stock at an agreed-upon price at a set time in the future.
When you sell a put option, you have the obligation to buy a particular stock at an agreed-upon price at a set time in the future.
Don’t worry, I’m going to explain exactly how sophisticated investors use these types of contracts to enter stocks at a discount to current prices and collect income instantly.
Being Smart And Patient Pays Instantly.
We’re going to go with a safe and great company many investors would love own, Apple Inc. (AAPL)
Let’s say you’ve been watching Apple for years and you’ve known it’s been a great value, but you just haven’t been able to pull the trigger on buying shares.
You’ve probably told yourself, if it got to this price, you would definitely buy shares. However, the stock price either didn’t get there or worse yet … you missed it because it moved too fast or you weren’t in front of your computer to place the trade.
Here’s where a put option will become your best friend…
Let’s imagine shares of AAPL are currently trading at $100.
If you had to get long Apple right now, you would pay $100 a share.
That’s like going to the car dealership and paying the sticker price … now, you wouldn’t do that without negotiating right?
No way… after you’re finished with this report, you won’t do it again because we are going to get a “great deal.”
Because options provide so many strikes, you can select exactly where you would want to buy shares of Apple at.
This gives you the power to be able to purchase at whatever prices you would like.
For this instance, we want to put in a “lowball” offer on Apple by selling put options.
With prices at $100, it’s possible to sell a put option with a strike price of $90. This will obligate you to buy shares at $90. For selling the put option, you collect $2.00.
Now, $2.00 doesn’t sound like a lot, but 1 option contract is equivalent to 100 shares. Let’s assume you just sold 1 put because you only wanted to purchase 100 shares, so your total premium collected is $200 (100 x $2.00).
Since someone is paying for the right, you collect that money and it goes into your account right away because you provide that right and you have the obligation.
Now if prices never go below $90 by the time the option expires, you get to keep all of that money you collected.
The great thing is that you can go out there and do it over again and again until you get the prices you want and keep moving your strike with the market fluctuations.
Not only do you collect income, but you use a lot less money than you would’ve used if you purchased the stock … all while reducing your risk and enhancing your returns.
It’s worth noting: You can make money even if the stock declines … as long as it stays above $90 by expiration of that option contract.
Now, if prices of Apple did drop to $90 or below, before that option contract expired, you are obligated to buy the stock at $90. You are obligated to buy 100 shares at $90 share, which would be an $9,000 outlay.
Remember, you were paid $200 to enter into the put option price. Therefore, $88.00 per share. That’s a great deal, right?
Again, there is nothing too risky here. We’re simply using an option strategy that says, yes, we are willing to get long 100 shares of Apple at “my” price.
Best of all, you don’t have to be an options whiz or have a financial engineering degree from the NYU Polytechnic School of Engineering to understand how this stuff works.
It’s the same amount of risk you would have if you just bought shares of Apple at $100, but I just taught you how to negotiate with the market, so you’ll never have to pay the “sticker price” again using options.
Like I mentioned earlier, this has been one of Warren Buffett’s bread and butter strategies for years.
Either you’re looking at option quotes right now trying to understand this better because you want to start using it…
You’re skeptical because it sounds a little too good to be true.
If you’re like me, and a more practical person … you’ll want to see some real numbers.
I want to share this research with you, which was published by a fellow Chicago based firm, tastytrade.
They published a study, which covers over four years (2009-2012) of SPDR S&P 500 ETF Trust (SPY) options data.
The study looked at whether or not it made sense to sell puts that are closer to where the ETF was trading, which are referred to as at-the-money or ATM.
They compared that to selling puts that are away from the stock price, which are referred to as out-of-the-money or OTM (another example of an OTM option is the $90 put in Apple, with the stock being at $100).
During this period, there were 52 observations in the study.
As you can see, the strategy was viable in both cases. Notice the win percentages on each of the options, 94% and 79% respectively.
Now those are some eye opening numbers!
The thing that surprised me, and also helped me, was understanding that those who took on more “risk” actually made a whole lot more money even though their win rate was lower.
This is the great opportunity associated with selling put options. You can choose what you want to sell puts on. For instance, selling put options on companies you’d be happy to own, so you’re not bothered with being forced to
buy the shares.
As you have learned, options don’t always have to be this super complex or risky that you hear about on the internet.
In fact, when done correctly, the odds can be heavily stacked in your favor.
Now, instead of selling puts on individual stocks, you might find using an index ETF, such as the SPY to be much more beneficial.
The broader markets have less headline risk than individual stocks. For example, a stock can move on several factors like earnings, macroeconomic data, analyst upgrades/downgrades, activist investor comments and so much more.
For many investors, they’d prefer not to deal with the headaches nor do they want to be stock pickers.
Selling puts is just as easy as buying stock, but as you now know … smarter.
I like to systemize everything and focus on what I know works. I have variables and specific parameters that help me avoid unnecessary losses.
Since you’re part of the family and a reader of OptionSIZZLE, for a limited time I’m going to make available that checklist or cheat sheet that provides you my exact parameters to find the best stocks to sell puts on, in order to generate income.
It’s simple to understand and safe to use. I also guarantee it will help you make money.
Even if you’re a more conservative investor, I will provide you a list of the top 30 “Elite” stocks that are safe to sell puts on and you’d likely want to own if you’re a longer-term investor.
I call this the system the, Weekly Options Trading Income System.
However, I want you to benefit and start using it today.
Even asking $47 might take a little more convincing.
Because I want you to make a smart low risk, high reward investment right now, you can purchase it right now for only $20.
You get to benefit from some great information for a low investment today.