Pathway to Profits: Lesson #5 Assets Producing Profits
PATHWAY TO PROFITS: Lesson #5, Assets Producing Income Are you catching on to the fact that this is “Assets Producing Income?” It’s a “quit you job strategy.” But it much more than that. It’s get out of debt, pay your bills, send the kids to college. It provides time-freedom and money-freedom. Here in Lesson #5 we’ll show you your retirement. It’s what we live for—to help people get retired, and live the live they want to live.
Ask yourself, after reading the last statement, this question: If money were not an issue—meaning you have income from an independent, passive source—what would do with your life. Much good, we hope.
I think the person who invented a faucet that blends hot and cold water was a genius. For years one faucet produced cold water, the other hot. You had to run your hands back and forth, or fill up the basin to get warm water. Not after the dual faucet came into existence.
This is what I did with Writing Covered Calls. When I first learned of it, I visited the largest bookstore in the country for business/stock books. It was a half a block off Wall Street. They had tens of thousands of books, while the average bookstore has maybe a thousand, but usually hundreds.
I spent almost a day there and looked through hundreds and hundreds of books. I found one short paragraph in one book that even mentioned Covered Calls. I got it. I understood the beauty of the process, and set out to master the strategy. I’ve done around 29,000 trades, of which about 10,000 have been Writing Covered Calls and its variations.
These trades, and all of the mistakes I’ve made and the insights I’ve gained in the real-world Wall Street School of Hard Knocks, now benefit all who choose to go down this road with us. Most smart people realize “Experience is the Best Teacher,” but is also important that many of these people realize they don’t have to make all of the mistakes and gain the experience first-hand by themselves. It is truly a wise person who learns through the experiences of others.
After that visit I then wrote four chapters in my New York Times Bestselling book, and have developed seminars, workshops (The $4,295 Wall Street Workshop—Two Day Event), and other books and services. My focus for years has been Writing Covered Calls and helping people Two-Step their money, and live a better life. That is why I’m thrilled to be part of WIN’s TDT, or Thousand Dollar Thursday. It is so much fun, and I’m sure you will benefit greatly. I can’t wait for you to try it on for size. And lastly, I am so pleased that WIN has made the TDT available for FREE, with your purchase of Paid to Trade. That’s a new bargain, one rivaling the Faucet. Brilliant.
I want to make sure you get this. Some people make it too complicated. I submit that if you make it too complicated, it’s because you are a complicated person. The is power in simplicity.
Here is a side example. You are moving and put $1,000 worth of furniture up for sale. Someone who really wants it, asks you if he can give you $100 and get four weeks to pay the $1,000 (whether the $100 applies to the purchase is up to negotiations). You take the $100 and wait. You can’t sell it during the meantime. In fact, even if someone else offers you $1,200, you are obligated to sell to the first guy. That’s a furniture option. We use stock options, but they’re the same—albeit the stock/options is easier to use.
Let’s do a quick review with another deal.
We’ll use Staples (SPLS). Like you, they also have furniture for sale. The stock is $11.01. The $11 calls are going for 95¢ X $1. We’ll round down the penny, to $11. 400 shares would cost $4,400. You would have to put up half of that, or $2,200. Now with 400 shares, we can sell 4 contracts at $11. That would be $360. You’re not going to set the world on fire, but $360 on $2,200? That’s not bad.
So what is the brilliance? It’s Assets Producing Income.
We set out to help people make around $9,000 a month. That’s double what the average American Family makes. Can you see yourself in this picture?
Let’s get you going into real deals, and real profits.