Last week I went over several simple income strategies using options. If you are in any way intrigued by the following approach to investing please give my recent webinar a view. I think you just might find something extremely helpful in your long-term endeavor towards investment success. Click here to view.
Over the past two years, Options Advantage subscribers have managed to make over 66% in income on Apple stock. That’s almost 3% a month in income. If you purchased Apple stock at the same time we started the “Apple Portfolio” in the Options Advantage service you would have made less than half that return.
Each month, I reveal a way to collect extra income from one of the world’s most divisive stocks: Apple (NASDAQ: AAPL). Most people either love or hate this company – and likewise, they either own it, or they don’t.
But I’ve found a way to make money from Apple – regardless of whether you own shares or not, whether you “like” the company or hate it. It doesn’t matter what your opinion is on Apple, it only matters that it is a conservative, highly liquid stock with a heightened implied volatility.
I won’t get into too much detail here, but I have found a simple way to ensure my investments are profitable 80%+ of the time. Let’s take a closer look at Apple stock.
I can buy or sell the stock short right now, but my probability of success would be only 50%. That’s because the stock is going to go either up or down. Including my transaction costs, my probability of success is actually lower than 50%. Plus, at roughly $100 per share, I’d have to fork over a lot of capital to make the investment.
However, through the use of a relatively simple options strategy, I can increase my odds to over 80%, and I can do so without risking as much capital.
How is it possible to have an 80%+ probability of success?
In essence, I am selling options to speculators. These traders are speculating that Apple will continue to rise or fall.
You may have heard it before, but it’s worth repeating: Most option contracts expire worthless. In other words, most of the time when someone buys either a put or a call, they lose money. My goal is to simply pocket the profits by selling these gamblers their lottery tickets. And 80% of the time, I make money.
With Apple alone, I’ve made money 90% of the time. Even if you missed out on these past wins, I have good news for you: I’m about to release my next trade. So why aren’t more and more investors using this strategy? I’ll never understand . . . but frankly, it’s to our benefit that few investors participate. That gives us an even bigger edge.
The strategy simply makes mathematical sense. You get to choose my own odds based on the risk and return that fits best in your portfolio.
This is what I do in the Options Advantage service and it is what I have been doing throughout my entire career as an options trader.
Knowing that each and every stock investment only has a 50% chance of success, it just doesn’t make sense that people keep perpetuating the guessing game that goes on daily in the investment world. My advice is to stop guessing and start using probabilities to make your decisions.
If you’re interested, I invite you to view my latest webinar (for free). During the live event, I’ve given you all the details of high-probability trade for taking advantage of Apple’s recent price action.