Twenty Two Reasons to Write Covered Calls
Part One: 22 REASONS TO WRITE COVERED CALLS
Wade B. Cook
REAL CASH FLOW = REAL WEALTH
Wade Cook, is a four times New York Times Business Bestselling Author. These books include WALL STREET MONEY MACHINE (On the list for 18 consecutive months), and SAFETY FIRST INVESTING and BUSINESS BY THE BIBLE.
He currently writes for the Wealth Information Network Inc. (wininc.biz), and also develops marketing strategies and Ad Copy for others.
His passion is for cash-flowing the stock market and helping others build their businesses and generate more income.
STOCK MARKET INCOME
Writing Covered Calls is a monthly cash flow workhorse. It combines selling (not buying) options on good investments. Doing so generates cash into your account in one day. Millions of Americans use this strategy (thanks to my book, Wall Street Money Machine), yet tens of millions more are leaving countless billions on the table every month. It’s sad, but that’s about to change FOR YOU.
An example: You buy a stock on a dip in price, say at $9.00. 1000 shares would cost $9,000, or $4,500 if you use margin. Now you sell the next month out $10 Call for 80¢ x 1000 shares, or $800. By selling, you take on an obligation to sell the stock at $10 (a $1.00 profit or gain) on or before the third Friday of next month. If the stock goes up you’ll make an extra $1,000 ($9 to $10 on 1000 shares). Your profit is $1,800 on your $4,500 investment. If the stock stays below $10 you keep the stock, and can sell the next month out option. Either way—up or down—you keep the $800. MOST PEOPLE ARE $8,000 to $15,000 FROM RETIRING CASH FLOW WEALTHY. $800 this month, $1,200 next month—soon you’re able to retire with excess monthly income. Writing means selling, covered means you own the stock and a call is a call option. We sell for cash flow. This strategy creates a monthly Income Machine. See my book—Stock Market Money Machine. It’s a single topic book—basically the A to Z of Writing Covered Calls.
To Be Continued.