I Love FREE MONEY!! DO YOU?
Hi, now we’re talking, we’ve got the collar play which is amazing. This is an expensive options trade with 100% returns and 0 risk. This is when we do a Covered call, on a good stock nothing under 10k for 100 shares, and we buy a long put at the same strike. You’ll want to do the covered call first. You’ll want to do it from 6 months (if you don’t mind paying short term taxes) to over 1 year. (You won’t have to pay short term, its long term) So, we go 1 year out expiration on lets say QQQ, can be on any stock, as well it can be on DIVIDEND stocks as well that pay under 6.6& You’ll see in a minute. On growth stocks that don’t pay divs, or some that pay a tiny amount like QQQ, SPY etc. You’ll go to a year out expiration find at the money on the options chain, You’ll now notice that the CALLS are MORE expensive than the PUTS. SO what do we do? We sell an at the money covered call, I like one under at the money, and a Put at the same strike, you’ll want to do the covered call first and it must be 1 under so, there’s some room when the stock moves when buying the put. You’ll get about 6k for the call, and now you will use that 6k to buy a put which cost 4k. That means which ever the way the stock goes, you’ll make 2k off of the 30-40k you put down, which should be about 6.6% also to make a higher percent you can use Optionsprofitcalculator.com to drop the put one or more down from the covered call, and can get up to 10% if the stock goes up for the year, because the covered call will expire deep in the money, and your shares will be called away. You’ll get 10% Though!! and if you think the stock will drop you’ll do the at the same strike put. This way you’ll make 6.6& even in a bad market. This is easy money you need to know! You might even be able to do it in your 401k. I hope you will. This play is also known as a CREDIT COLLAR. Enjoy your 2k, off of 30k every year coming in, feel free to tip me more lol, nah just playing, but thanks again for purchasing. So what we covered stock goes up while in play the shares will get called away, when the stock drops you just close down on the last day. Bingo, easy 2k. You don’t have to exercise, but you could and you’ll keep the shares ONLY at Expiration…. Here’s a video to show you more.
Thanks , I’ve recently been looking for info about this subject for ages and yours is the best I’ve discovered so far. However, what concerning the conclusion? Are you sure concerning the source?
I used the video as a way to show how to enter and exit the trade since I couldn’t show the credit conversion totally Credit collars are a great way to make some honest income but it requires a bit to much money sitting around for my taste also but I like to use it to hedge businesses and my rentals so that I always have the taxes every year paid. 🙂