How to Collect Thousands of Dollars in Extra Income Each Week—While Slashing Risk

Don't miss your latest edition of Benzinga Research Daily! Another Thursday Market Update From Nic Chahine...

Benzinga

Sent on 13 June 2024 01:37 PM

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Don't miss your latest edition of Benzinga Research Daily! Another Thursday Market Update From Nic Chahine...
DAILY
June 13, 2024
How to Collect Thousands of DollarsIn Extra Income Each WeekWhile Slashing Risk
Nic-Chahine
Nic Chahine
Microsoft Corp. (MSFT) is on a dividend hot streak
Not only has it managed to raise its dividend for each of the last 19 years (including the 2008-2009 financial crisis) but its also hiked payouts aggressively in recent years...
Last year it increased payouts by another 10%.But investors looking to capture income from Microsoft today have a problem thanks to the companys surging share price, yields today are just 0.71%.
Thats $71 for every $10,000 invested hardly a game-changer for income investors.
But what if there was a way for investors to collect hundreds or even thousands of dollars from trading Microsoftwithout waiting three months for the next round of dividend payments?
And what if this income was not only instantaneous, but also around 15X more powerful than the regular dividend?
Welcome to the world of selling cash-covered calls and put options.
Most people hear the word options and want to run away.
The feel its too risky or complicated for them to ever do.
But as youll see, Ive shown people from all walks of life how to collect this extra incomewith just a few extra clicks of their brokerage account.
Let me show you how it works
As I write to you on this Thursday morning, shares of Microsoft trade for just under $440/share.
Owning 100 of those shares will earn you a dividend payout of $75 in August, when the next round of dividend checks are scheduled to go out.
But what if I told you that, by just next week, someone is willing to pay you $465 for the chance to buy your shares at $440/share by the end of the week?
Would you want to take them up on it?
Well, lets run the numbers
Whether they buy your shares or not, you collect $465 for entering into this agreement.
This moneythe premiumis yours to keep no matter what happens to the stock.
It hits your brokerage account instantly, while most investors are waiting until August for that $75 dividend check.
And by 4 PM next Wednesday, one of two things will happen
Either MSFT shares are above $440/share (in which case your shares will be called away) or theyre below $440.
If theyre below, its not profitable for the person who sold you the option to exercise their right to buy shares from you at $440.
So theyll decline to do it you keep not only the $465 premium but also your shares.
If the price is above $440/share, its worth their while to buy your shares at $440/share.
So your shares will get called away.
In that case, youll still keep that $465 premium you collected (remember, its yours no matter what happens to the stock).
And youll also collect a tidy capital gain, since youre selling shares at a higher price than theyre trading at this Thursday.
So, why doesnt everybody do this?
As you can see, options trading can actually be less risky than buying blue-chip stocks outrightbecause the premium you collect is yours to keep no matter what, so it takes some risk off the table.
But most people will still believe options are beyond their level of market understanding or trading capabilitieseven though they take just a few clicks of a mouse to execute on your brokerage account.
Most people have no idea that hundreds or even thousands of dollars is theirs for the taking, should they choose to collect these premiums.
And thats why I started MoneyLine.
With MoneyLine, Ive helped thousands of people from all walks of life to understand how they can collect these payouts from cash-covered puts and covered callsand today, youll have the opportunity to join them.
So keep an eye on your inbox over the coming weeks, as Ill be sharing more trading insights as well as some stories about what MoneyLine has done for readers.(Just look at the example below!)
I hope to see you on the other side,Nic ChahineEditor of Options MoneyLine
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75% Win in 3 Days With MoneyLine
You read that right. Nic Chahine saw 75% win in just 3 days with MoneyLine. Get full access here now.
MoneyLine
Actual results will vary widely given a variety of factors such as experience, risk mitigation practices, market dynamic and the amount of capital deployed. Past performance is not necessarily indicative of future results. Information contained in this email and websites maintained by Benzinga (Benzinga) are provided for educational purposes only and are neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Benzinga and its affiliates may hold a position in any of the companies mentioned. Benzinga is neither a registered investment adviser nor a broker-dealer and does not provide customized or personalized recommendations. Any one-on-one coaching or similar products or services offered by or through Benzinga does not provide or constitute personal advice, does not take into consideration and is not based on the unique or specific needs, objectives or financial circumstances of any person, and is intended for educational purposes only. Past performance is not necessarily indicative of future results. No trading strategy is risk free. Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more. You should trade or invest only risk capital - money you can afford to lose. Trading and investing is not appropriate for everyone. We urge you to conduct your own research and due diligence and obtain professional advice from your personal financial adviser or investment broker before making any investment decision.
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