Covered Calls and Cash-Secured Puts for
WEEKLY INCOME
This is not a ‘buy low and sell high’ approach that most people are taught.
Rather, we combine buying stocks and selling calls to ‘lock in’ a pre-determined return.
Cash-secured puts have the same ‘risk – reward’ profile and are a proven approach for income production.
"You make money by selling, not buying!"
Covered Calls and Cash-Secured Puts generate income. When done each week, it is like getting a paycheck from the stock market.
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What is a covered call?
Simply stated, it is buying stock and then selling a call option. You know what a stock is. A call option is a contract to deliver the stock shares on a set day at a set price. The holder (buyer) has the right to buy the underlying stock. The seller of the call option has an obligation to deliver those shares. If properly set up, you can sell stock for less than you bought it, and still make a profit. By choosing the best combination of dates and strike prices, the premium obtained from the sell can assure a profit. Our software tool can help you determine those factors.
What is a cash-secured put?
Simply stated, it is selling a put option. As the seller of the put option, you have an obligation to buy the underlying stock at an agreed upon price. To secure that obligation, brokerage firms require there to be sufficient cash on deposit to purchase the stock; hence the ‘cash-secured’ label. If your account is authorized for margin (borrowing), your broker might only require you to put up a portion of the amount, which is commonly referred to as a ‘naked put’. When selling puts for income, choose a strike that is sufficiently below the current price such that the probability of it expiring worthless is in your favor. Our software tool can help you determine that strike price.
The hard part is finding good equities to utilize.
Finding good stocks is the key to our success. We focus on fundamentals when selecting the Trade Alert candidates. Our experience has taught us to look at market capitalization; annual revenue; revenue growth rate; positive earnings reports (avoid companies that miss the targets); trading volume; and cash-on-hand (we call it bare cash). Our proprietary tools rank the companies for further consideration. The good news is, you don’t have to learn how to use the tools – just use us!.
We’re a highly collaborative and supportive team, coming together on every project to ensure our clients get the very best result.
Our Mission
To connect traders with tools and resources to help improve their success and profitability. We help others profit from using VISIONS software.
Our Values
Our success depends upon your success. Through honesty and integrity, in all that we say and do, we seek to provide a level of service which “earns your business” each and every month.