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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.

Futures trading involves high risks with the potential for substantial losses. Hypothetical performance results have many inherent limitations, some of which are described as follows. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. there are numerous other factors related to the markets related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Option and stock investing involves risk and is not suitable for all investors. Only invest money you can afford to lose in stocks and options. Past performance does not guarantee future results. The Chuck Hughes Inner Circle Advisory trade record does not represent actual investment results. Trade examples are simulated and have certain limitations. Simulated results do not represent actual trading. Since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.