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Income Strategy for Generating High Annual Returns 

When you generate a 154% cash return on your stock position, a lot can go wrong and you will still profit:

  • The stock/ETF could decline substantially and you could still profit
  • If you had bad timing on entering the trade you could still profit
  • There could be volatile price swings in the stock/ETF and you could still profit
  • This gives the strategy a huge advantage over stock and option directional trades that require the stock or ETF price to move in the right direction to profit
  • And unlike directional trades, the income strategy rarely gets ‘stopped’ out during volatile price swings

In the video below you will learn how this income strategy delivered substantial returns over the last several years during volatile, non-trending markets.

 

Volatility Strategy

Maximum Risk 5.9% with Unlimited Upside

One of Chuck's favorite strategies during volatile markets is the married put trade which is initiated by purchasing stock and a protective put option. Chuck's brokerage account confirmation shows that he purchased 800 shares of the Nasdaq ETF symbol QQQ at 54.35 and purchased 8 of the QQQ Jan 12 55-Strike put options at 4.11.

The 55-Strike put option protects the QQQ purchase and the value of the QQQ will not decline below 55.00 regardless of the subsequent price movement of the QQQ. In this video we will learn that Chuck's maximum risk for this trade is $346 or 5.9% but the upside potential is not limited. A maximum risk of 5.9% is a great trading approach in today's volatile markets.

Volatility Strategy

Despite daily volatility the broad stock market as measured by the S&P 500 Index is virtually unchanged over the past 4 months making it difficult to profit from long or short trades.

If you use money management rules to limit losses during volatile markets, many times you will be stopped out of a trade even though you were ultimately correct about the market direction. Learn the ideal strategy to profit in volatile markets even if markets are unchanged this year.