Fellow Investor, From coast to coast around the country, the weather is heating up and summer vacation is around the corner. The stock market, however, has been anything but a vacation this year for investors, and many observers fear a full-blown meltdown as we head into the hot summer months. Dragged down by raging inflation and rapidly rising interest rates, the S&P 500 is down 17% so far in 2022. Energy and utilities are the only sectors showing positive returns, while the tech sector and popular ‘QQQ' ETF have shrunk investor wealth by 27%. Dividends and Options Deliver in Volatile Market Dividend-paying stocks have provided relative safety and far better positive returns than the overall stock market. For example, the iShares Select Dividend (DVY) ETF has managed to stay above water this year with a 2% return – more than 19 percentage points better than the S&P 500. I'm sure you'll agree that the market has gotten off to a rocky start in 2022, but we don't mind the drama or the volatility. It's times like these when we make more money doing what we do. We sell options on dividend-paying stocks for income and capital gains potential. The more volatile the market, the more money we make for selling options on dividend stocks. Dividend Stocks + Options Premium = Exceptional Returns Combine the positive returns of dividend-paying stocks with exceptionally high levels of market volatility that we saw in the first quarter, and it's not hard to imagine how advantageous it has been to sell options on dividend stocks like we do every Tuesday and Thursday in Forbes Premium Income Report. For the trades presented in Forbes Premium Income Report, we seek engagements usually from two to six weeks in a position that earns 3% to 6%, sometimes more—and then do it again and again. If you earn 4% every six weeks, you're earning more than 30% on an annualized basis. Closed trades translated into profits 99% of the time last year…and so far we have a perfect record for profitability of closed trades in 2022. Since 2014, we've produced profits on 95% of our 1,495 closed trades, with an average total return per closed trade of 7.4% and 34.2% on an annualized basis. The Buy Write: Our Textbook Options Play on Dividend-Payers How about an example of what we do? Here's a real trade we did on March 29 and closed out 24 days later on April 22. We bought 100 shares of paper and packaging giant International Paper (IP). The nice thing is that we didn't pay full price for International Paper stock. We bought it at $46.50, but we only paid $45.65. How did we get it cheaper? We earned $0.85 per share for selling a $47.00 call option that would expire April 22. Selling that call meant that we might have to sell the stock for $47.00 at any time until the option expired. If the stock closes above that price at expiration, it's automatically sold at the strike price. As it turned out, IP closed at $47.72 on April 22. We had to sell the stock at $47, so we earned $1.35 per share on our cost of $45.65 per share for a total return of 2.96% over 24 days. On an annualized basis, that's 45%. If you want to sign up for the profit and fun, you can read through our detailed log of every trade we've made since 2014…eight years-worth of documented recommendations that have made members hundreds of thousands of dollars richer. The market has definitely trended lower since the start of 2022, but the increase in volatility and the pockets of strength found among dividend-paying stocks have been very favorable conditions for what we do, and we are still booking profits on a regular basis. As investors, we know it pays to pursue investment strategies that have proven their mettle in both bull and bear markets. Owning undervalued dividend-paying stocks is a time-tested approach for generating both capital gains and high levels of current income from fountains of corporate cash paid out to shareholders. From a firm foundation in durable dividend-payers, you can boost portfolio income even higher by tapping into extremely conservative options strategies. I want to tell you about one approach that has put hundreds of thousands of dollars of profits into the pockets of subscribers since March 2014…and one that is easy to understand and implement for anyone with a brokerage account and internet access. Dividends Are Delightful If you're comfortable owning stocks at all, you'll probably also enjoy the added benefits of owning stocks that pay high and rising dividends. Over time, these kinds of stocks are veritable compounding machines that gush cash like fountains…producing streams of income or funding the purchase of additional shares every three months. We buy dividend-paying stocks and then we do something that's perfectly legal but stacks the deck in our favor as it generates additional income from our stocks. If you like the idea of receiving real cash that pays you back just for owning a stock, then you'll love the extra income you can earn selling options on dividend-paying stocks. Selling Options Boosts Yields Our experience shows that writing covered calls on stocks you own often earns 3% to 6% per month in additional income…while writing puts on stocks you wouldn't mind owning earns similar returns. Both scenarios put cash in your pocket up-front, which reduces your cost basis in the stock and increases your chances of earning a profit. You owe it to yourself to learn more about this strategy that generated a 100% win rate and average annualized return of 48.3% on closed positions so far this year! Boosting Income and Total Return with Cash Payments This is Charles Morgan, associate publisher of Forbes Newsletters. Today I'd like to tell you about a source of weekly cash payments that you can begin collecting immediately. In just the past few months, you could have grabbed these instant cash payments: - $280 on May 19…
- $285 on May 17…
- $235 on May 12…
- $545 on May 10…
- $365 on May 5…
- and so on.
Subscribers have pocketed hundreds of dollars every Tuesday and Thursday afternoon, month after month for the past seven and a half years. What's more, the payments you collect are typically 30 times greater than what you can get from most dividend stocks, bank CDs and Treasury notes… They are the equivalent, in annualized terms, to yields between 25% and 250% a year… In fact, the cash payments you get with this approach can actually make your overall portfolio SAFER… and provide a cushion of guaranteed income in times of market volatility and uncertainty… And it can help make sure you NEVER run out of money… and enjoy the kind of prosperous, worry–free retirement you want and deserve. So, what's the secret? You Can Collect Instant Cash Every Week and Month by Selling Low-Risk Options on Stocks Most investors know about options but relatively few take advantage of them. That's because many believe that options are risky, and they can be… if you're the one BUYING them. But if you're the one SELLING the options, they are among the safest sources of investment income there is. When you sell options on dividend-paying stocks, you earn cash income on at least two fronts—from the dividends you earn and the money you make selling the options. They both serve to reduce your actual cost basis in a stock and set you up for superior total returns. You Make Money… Or You Make Even MORE Money With this strategy, you can make money THREE ways: You collect instant cash on the options… You earn a dividend…AND you collect the profits you make on the underlying stock. We only do these trades on dividend–paying stocks since they greatly enhance investment income while reducing cost basis. Our basic trade is a buy write, which involves buying at least 100 shares of a dividend-paying stock and simultaneously selling call options that expire in two to six weeks. Here's an example from earlier this year: on January 18, John Dobosz, editor of Forbes Premium Income Report, recommended buying 100 shares of scrap metal recycling company Schnitzer Steel (SCHN) . The price of the stock was $41.60 per share, but we only paid $39.00. How's that possible? Well, we earned $2.60 per share by selling $41.00 call options that would expire one month later on February 18. The combined price or the "net debit" (stock price minus options premium) of establishing this position was $39.00 per share, and it entitled us to the January 28 dividend of $0.19 and all gains in the stock up to $41.00 for the next 31 days. If the stock closed below $41.00 at expiration, we would've still owned it. So, what happened? Schnitzer Steel shares closed above $41.00 on February 18, so our stock was automatically sold at $41.00, providing a profit on our 100 shares of $219 on $3,900 at risk, or 5.62%. Over a 31-day holding period, the annualized return was 66.1%. Writing Puts For Portfolio Building And Cold Cash Here's another example of how we make money: writing puts. This means getting paid for pledging to buy a stock at the strike price anytime until expiration. If the stock closes above the strike price when the options expire, you keep the money and have no further obligation. Here's an example of how put writing made money for us a few months ago.  On September 14, shares of paper and packaging company WestRock (WRK) were trading for $45.54 per share. This is what John recommended to his subscribers: Earn $190 selling one contract (each contract covers 100 shares) of $45 WestRock put options that would expire January 21. Fast-forward to January 21 and WRK closed at $43.88 per share, which was below the strike price, so we had to buy 100 WRK at $45. Our cost basis, because we earned $1.90 per share selling the puts, was only $43.10. As it turned out, the stock started to climb higher after the options expired, so we eventually realized a 7.08% total return when we sold the stock on February 1 for $46.15. A Low-Risk Way to Make $523,506 We're extremely proud of our track record since the debut of the Forbes Premium Income Report service eight years ago. Since March 2014, we have closed out of 1,495 trades that have produced an average total return of 7.4%, and an average annualized return of 34.2%. Only 5% of closed trades since 2014 did not produce a profit. Last year was one of our best, and this year we are going strong with a 100% win rate on closed positions in 2022. Since the start, losers have been limited and more than made up for by a long string of winners! There are two new trades every Tuesday and Thursday. You don't need to do them all. In 2019, closed trades earned an average annualized return of 34.7%, with an average 5% total return per trade. Only 3 out of 128 closed trades in 2019 did not produce a profit…a 97.7% success rate. Get this: in dollar terms, we have made our subscribers $523,506 in cash since inception, which created a real difference in their lives. Investing Experts Agree: Selling Options on Stocks Can Boost Your Income Significantly Unlike the unrealized gains you see with stocks, income from selling options doesn't vanish when something goes wrong on Wall Street or in the overall economy. Once the money hits your brokerage account, nothing can touch it. It's cold, hard cash that you can spend any way you please. And I'm not the only one who says this. Here's what other investing experts say about selling covered options to boost your investment income: - The Wall Street Journal says that options on stocks you own “generate income and can juice returns in any market.”
- Forbes magazine says cash from selling options is “like finding money in the street.”
- Barron's adds that covered calls are a “strategy that, studies have shown, outperforms buy–and–hold investing.”
- Money magazine says that selling covered options can “boost long–term returns up to 20%,” according to a study by University of Utah finance professor Robert Dubil.
Multiple Streams of Cash Income You Can Count on Week After Week What's more, generating additional income from selling options is easy. - You don't need a special account
- You don't need a lot of cash
- You can do it with almost any regular brokerage account
All it takes to begin selling options on stocks you already own is a phone call to your broker and signing a special form. And another thing: Unlike many other income strategies, you can sell options on stocks in retirement accounts. The IRS considers selling covered options sufficiently conservative that it allows ordinary investors to use them in IRAs and 401(k)s. What's more, everything is handled automatically by your brokerage. When you collect the premium on a covered option, the money instantly appears in your account…within hours if not minutes. Become a First–Time Subscriber to Forbes Premium Income Report Now, I would like to personally invite you to try out this strategy risk–free with our Forbes Premium Income Report advisory newsletter. When you agree to a no–strings–attached "test drive" of Forbes Premium Income Report, you get… - Multiple weekly trade alerts—typically two new trades every Tuesday and Thursday for a total of four new moneymaking opportunities per week. You can invest in as many or as few as you want. Each pick is rigorously scrutinized by the well–respected Forbes team and ranked by risk.
- Both Conservative and Aggressive Picks: Conservative stocks are companies that pay dividends reliably over a long timeframe. Aggressive stocks are usually companies with a strong growth profile. Quite simply, we make our money by selling call and put options on these investments.
- Weekly and Monthly Income: Recommendations for generating immediate income from your stocks—as much as $2,000 to $8,000 per month depending upon the size of your account, with less than ten minutes of actual work per week on your part.
- Active Trading Portfolio: With specific buy, sell and stop loss instructions.
- Quick Start Guide: The Forbes Premium Income Report “Quick Start” guide for generating monthly income with covered calls and puts.
- Research and Analysis: All the research and analysis done for you based on Dobosz's years of income investing and options trading.
- Answers to Your Questions: You can email John Dobosz anytime with a question and he will personally respond to you, often within just 30 minutes.
And as if all that were not enough, if you agree to a trial run today, I'll also send you three Free Bonus Gifts: BONUS GIFT #1: Options Strategies For Income Investors In this essential 12–page report, you'll get a crash course in trading with options. You'll learn about different strategies for multiplying your wealth, how to minimize your risk, clear definitions of the terminology, screen shots of online trading platforms, examples of successful options trading, and much more. A $49 value—yours FREE. BONUS GIFT #2: Personalized Coaching Worth $250! To help you start collecting instant cash right away, we've also arranged to provide you with a personal coach to help you get started making the trades. This is a 30–minute, one–on–one telephone coaching session to answer all your questions and to help you start trading options immediately. Some of our subscribers believe this bonus gift changed their lives by giving them the impetus to start trading. Normally worth $250, this is yours FREE. BONUS GIFT #3: Free Text Alerts! Many of our long–time subscribers have asked us for real–time text alerts sent directly to their mobile phones… and now we're passing this benefit along to all new subscribers as well. With instant text alerts, you'll know the moment a new stock or options recommendation has been issued so you can make the trade right away. This frequently results in lower fill prices and bigger cash payments. And it's yours FREE. Test Drive RISK FREE For 90 Days and Save $300 Immediately Best of all, I want to remove every obstacle for you to experience Forbes Premium Income Report without risk. So, here's what I'm going to do: If you enroll before midnight on Saturday, May 21st, you can test drive Forbes Premium Income Report risk free for just $395—that's a whopping $300 off the regular price. And that's not all: By acting right now, you can lock in this low price for as long as you wish to continue. No matter how many times you renew your membership, you'll still only pay this special low price. Trust me: this is an enormous bargain. You'll be gaining a skill that will help you earn a regular income for the rest of your life… "working" for just ten minutes a week. And Don't Just Take My Word for It! Here's What Our Happy Subscribers Say: From our happy subscriber David S.: I have been following your recommendations since March with great success, having closed 26 of 27 trades profitably. I have learned and profited greatly from your recommendations and value your insights. Duane N. has been a subscriber since 2016: I enjoy following your trades from the Forbes Premium Income Report. While I cannot execute all your trades due to my smaller account, I feel good about my results on those where I can. Jack P. is another satisfied subscriber: I wanted to compliment you and your team relating to the success of the Forbes Income Premium Report since I subscribed 9/3/2020. I am very impressed with the success rate of your trades. And this is from our subscriber John M.: I've been thrilled with your results and have been doubling your quantity and dollar recommendations. This beats the hell out of dividend investing for income. Our subscriber Jeff G. wrote to tell us: I just signed up for your newsletter in August and I am really enjoying your recommendations and explanations as I am very new to options trading. Thanks again for making options trading accessible to a novice. Keith H. is another happy subscriber: I'm VERY pleased with the service you provide. Been doing it for almost 6 months and I'm returning a consistent annualized 25-30%. My returns more than pay for the subscription. From Randy S.: I have enjoyed many profitable trades following your advice as long-term subscriber. Thank you. And lastly, Beaufort L. said: Thanks for providing such great guidance and recommendations—superior to everything else I've seen over the decades. Really appreciate your patience and responsiveness. Unlike any other investment newsletters, I've seen. And as if that weren't enough, I also have a special offer and promise you're not going to believe. You Collect Instant Cash Right Away Or You Pay NOTHING! Now, I'm so sure your risk–free test drive of Forbes Premium Income Report will be worth your time, I'm prepared to offer you the strongest guarantee possible. - Try Forbes Premium Income Report with no risk or obligation.
- Scan the Quick Start Guide and special reports I've prepared for you and get the free coaching I've arranged for you.
- Try out a few of John's recommendations for high quality stocks and collect the instant cash payments from the options he recommends.
- Then, count your money.
If you're not delighted by the immediate flow of instant cash payments flooding your account, just let me know within 90 days. I'll send you a full, 100% refund of your subscription price, no questions asked. In fact, I'll even go one step further than that: Even after the initial test period, if you're ever unhappy with Forbes Premium Income Report, for any reason, you may cancel at any time and receive a refund of the unused portion of your subscription. In other words: There is no risk to you, now or ever. And it goes without saying that all the trading updates, hotlines, recommendations and bonus reports are yours to keep with our thanks—just for giving us a try. The Only Caveat: We Must Hear From You Before The Deadline I urge you to act now. This special membership offer is only valid until midnight on Saturday, May 21st. We will soon be offering Forbes Premium Income Report to the wider universe of investors, and then the price will be $695 a year. So, save $300 instantly and lock in this low price for as long as you wish to continue simply by agreeing to TEST DRIVE Forbes Premium Income Report risk free for 90 days. You have nothing to lose… and a lot of instant cash payments to enjoy. Just click on the button below… and let's get started collecting instant cash payments as soon as tomorrow. Sincerely, Charles Morgan Associate Publisher Forbes Newsletters P.S. Remember, this offer is good only until midnight Saturday, May 21st. If you enroll after that, you'll be charged the regular rate of $695. So, please: don't delay. This is a limited time offer. P.P.S. Also, this is a true risk–free 90–day trial. You can cancel at any time before 90 days and get a full refund of your deposit—and anytime thereafter for a refund of the balance of your subscription. Don't miss out on your opportunity to generate additional income with Forbes Premium Income Report. |
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