Double Or Triple Your Income Stream Without Buying A Single Share Of Stock

You may not know this, but one of the best income strategies in the world involves a “glitch” in the financial markets. It allows individual investors to generate what I call “Instant Income” from the best companies in the world.

The best part? More than 80% of the time, in my experience, investors don’t have to buy a single share of stock.

I’ve been using this strategy to deliver winning income trades for readers over the past few months. So far, the results have been great — all 21 of my recommended trades have made a profit. My strategy has allowed Income Trader subscribers to enjoy thousands of dollars in Instant Income since I first launched my service in February.

But you don’t have to take my word for it, here’s what one subscriber had to say:

“Great advice. Very clear to understand. [Income Trader] is a must for anyone interested in making money. No fluff, no hype. Just $$$$. I demo traded a few months before going live and was amazed at the results. I’ve been subscribing to newsletters for years and this by far is the best one.”

Let me show you a couple of examples. Using my strategy, subscribers collected $130 in Instant Income from a $520 “down payment” on Questcor Pharmaceuticals (Nasdaq: QCOR) in April. That’s an immediate return of 25% in just 43 days, or 212% a year. And in July, we collected $100 in Instant Income from OSI Systems (Nasdaq: OSIS) — a company that’s never paid a single dividend — for a return of 11.1% in 45 days, or 90.1% a year. I’ve listed of all my closed trades from this year here.

It’s clear that this strategy has a lot of income potential. Yet, less than 25% of investors are taking advantage of the “glitch” to generate income.

And I think I know why….

My Instant Income strategy involves one of the most misunderstood corners of the investing world: the options market. Many people avoid options because they have a reputation for being risky and complex, but the strategies I use are safer and simpler than you might imagine. In fact, my strategy takes advantage of risk-takers to generate steady income.

(And you shouldn’t get scared away by options, either. When you sign up for Income Trader, I send you my special report, “How to Generate Instant Income Selling Puts.” This primer walks you through everything you need to know before you get started.)

Many options traders lose money for one simple reason — they’re on the wrong side of the trade. In fact, more than 80% of options are worthless when they expire.

That may sound like a bad thing, but it’s actually what makes my strategy successful. It involves selling, not buying options.

When we sell an option, we get money deposited in our brokerage accounts. It’s called a premium, but I like to call it “Instant Income.” We get paid upfront for options that more than likely will expire worthless in a few months — meaning we don’t have to buy shares and our Instant Income is pure profit.

It’s this “glitch” in the options market that allows us to generate steady income from selling options on high-quality, undervalued stocks.

For example, with one option strategy I use, selling “put” options, one of two things can happen.

1. You receive Instant Income when you sell the option and keep it as pure profit — without ever having to buy a stock.

Or…

2. You get the opportunity to buy shares of a company you would want to own anyway — but at a discounted price. You’ll even know the price up front before you ever make the trade.

Let me show you a recent example…

On July 18, I recommended readers sell puts on Carbo Ceramics (NYSE: CRR), a company heavily involved in hydraulic fracturing, or fracking, a process used to extract oil and gas from rock formations.

Specifically, I advised readers to sell the Sept. $60 puts on CRR for a premium of $0.90. That’s a put that expires on Sept. 21 and pays sellers — which would be us — a $0.90 per-share premium, or $90 per contract (a contract is for 100 shares). This $90 is our Instant Income, or the amount we get paid upfront for selling the contract. If shares of Carbo Ceramics trade below $60, we’ll be shareholders at a cost basis of $59.10 a share ($60 – $0.90, our premium).

When I sold the put, shares were trading at about $76, so our $59.10 cost basis would represent a 22.2% discount. At $59.10 a share, we’d own CRR at 13.5 times 2014 earnings, a deep discount for a company that’s grown earnings at an average rate of 18% a year in the past five years. Based on the company’s solid fundamentals and dividend growth history, I’m more than comfortable owning the stock. But by selling puts, I can collect Instant Income without having to purchase shares outright. And if CRR trades below $60 before the options expire, I’ll own shares at dirt-cheap prices.

It’s been seven weeks since I recommended that trade, and with the stock’s price around $87 a share, the put option I recommended is more than likely going to expire worthless. CRR would need to fall more than 30% in the next 9 days before we would have to buy, or “be put,” the shares.

In other words, if the put option expires worthless, we get our original investment back, and we get to keep the $90 in Instant Income we were given per contract as pure profit — all on a trade that lasted only 65 days. 

Remember, this is how much income was made per contract. You can scale up as much as you want. If you had sold 20 contracts, you would have made $1,800, for example. With 100 contracts sold, you would have made $9,000 in just 65 days.

In fact, just this year, my recommendations would have made subscribers a minimum of $1,873 in Instant Income. But readers who invested higher amounts have earned $6,000… $19,500… or even just under $150,000 since we started trading seven months ago.

If doubling or even tripling your income stream without buying a single share of stock — in any kind of market — sounds appealing to you, you can start your subscription of Income Trader right now by clicking here. 

Good investing, 

Amber Hestla
Income Trader 

P.S. — The market is looking eerily similar to how it looked in March 2000 and in October 2007, just weeks before ultimately plunging 49% and 57%, respectively. That’s why I’ve been warning readers about the ‘Triple Top’ threat — a wealth-crushing, 60%-market-drop disaster that could happen very soon. For more about this potentially imminent threat and how you can keep earning a reliable income stream regardless of what the market does, I urge you to read this special report. 

This article originally appeared on InvestingAnswers
Author: Amber Hestla
ProfitableTrading.com
Double Or Triple Your Income Stream Without Buying A Single Share Of Stock