A Covered Call Example:
Hello, my friends, Well it is quite a day and time in the market. I was busy working on tomorrow's TDT—and I found myself wondering how many people are thinking of ways to make extra income without having to resort to working another job or taking unnecessary risk in certain businesses. I also wondered how many people know of the process of Writing Covered Calls. I think it's worth learning about. Read on and see what you think.
Most of the people who follow me are definitely a notch above ordinary in the smarts department, so I'll skip a long explanation and show you a deal. Oftentimes that is the best way to get people up to speed. And, like the smart people they are, they know where to get more knowledge if they're interested.
I'd like to start with an example, in other words, a real deal. The stock symbol is KNDI. It's going for $14.20. 100 shares would cost $1,420. But did you know that this amount of money will allow you to buy 200 shares? It's called margin. Now with 200 shares you can sell to the market the option. Notice I didn't say buy options—no, no. no. They're too risky.
We'll sell 2 contracts, representing the 200 shares for 60¢ each. 200 times 60¢ is $120. Now, we're doing the January options and that's two weeks from Friday. Without embellishing this, what do you think about making a cash profit of $120 on $1,420 for two weeks. Oh, and we sold to someone the right to buy our stock at $14.50. That would be another 30¢ times our 200 shares, or $60. But, whether we sell the stock or not the $120 is ours to keep. Pretty cool, don't you think?
What if you could to this every month. What if WIN sends you a few actual examples like this every week, so you can pick and choose. In short, who is on your team helping you make money?
I've written a special money paper called JOB FREE INCOME. It's a good read, and will show you the basics of this process. It's FREE. Yes, this deal was real. Get this report by going to wadecook.org.