| GUEST POST: JACK CARTER
Generating Income Post-Put: Making the Most of Your Stock Holdings
If you've followed my journey, you'll know about my early days as a stock broker far from my hometown of Gary, Indiana.
I’ll recap for you if you haven’t heard about it.
One holiday season early in my career, I learned a hard lesson when a "sure thing" option turned out to be anything but.
That humbling experience, though painful at the time, taught me the intricacies of options trading and the importance of strategy.
It turned me from a “gambler” buying options to “the house” selling options to the gamblers.
One of the lessons I've since championed is the art of generating income from stocks that have been "put" to me. Let's delve into this.
When I sell a put option and the stock price drops below the strike price, the stock is "put" to me.
For many, this might seem like a setback, especially if the stock continues to decline. But I've always seen it as an opportunity in disguise.
1. Covered Calls:
Once a stock has been put to me, one of the most straightforward strategies I employ to generate additional income is by selling covered calls. Essentially, I'm offering someone the right to buy the stock from me at a predetermined price within a set timeframe.
In return, I receive a premium. If the stock doesn't reach the strike price of the call option by its expiration, I keep the premium, and the stock remains with me. If it does, I sell the stock at a profit. It's a win-win.
2. Dividend Collection:
If the stock that's been put to me pays dividends, that's another source of passive income. While dividends aren't guaranteed, companies that have a history of paying them regularly can provide a steady income stream.
3. Stock Appreciation:
Just because a stock was put to me doesn't mean it's a bad stock. Especially the way I trade — I only ever sell options on stocks that I am 100% comfortable ending up with. In many cases, a stock that is “put” to me can rebound. By holding onto the stock, I stand to benefit from any upward movement in its price.
4. Protective Puts:
If I'm concerned about the stock declining further, I sometimes buy a protective put. This gives me the right to sell the stock at a specific price, acting as an insurance policy against significant declines.
In trading, setbacks are inevitable.
But as my story illustrates, it's not the setbacks that define us, but how we respond to them.
Stocks being put to you can be turned into opportunities — given you have the right tools in your arsenal. It's all about perspective, strategy, and a bit of patience.
If my approach to options trading resonates with you…
And you're eager to see what a solid income strategy can do for your large trading account, I've got just the thing for you.
Tomorrow at 1pm Eastern, I’m diving into a comprehensive strategy where I unveil the nuances of a method I've honed over decades.
With an astounding 94%+ success rate, it's a testament to the power of strategic trading.
But I have to be fair with everyone’s time: I only recommend this strategy for those with trading accounts of $50,000 or larger.
If that sounds like you — and you’re ready to discover how to grow your large account, click here to register your spot.
Trade safe,
— Jack Carter | | | | |
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