Double or Even Triple Your Income Stream with the Instant Income Strategy
Friday, February 8, 2013
Printer-Friendly | PDF Version | Whitelist Us  | Also visit StreetAuthority

Double or Even Triple Your Income Stream Without Buying a Single Share of Stock

-- By Amber Hestla

Thanks to an interesting "glitch" in the financial markets I've generated thousands of dollars in "Instant Income" with 13 trades in just a few short months. (Full Story Below)

Also in Today's Issue...

10 Simple Ways to Earn Extra Retirement Income This Year
For an instant boost to your income, look no further. One of our picks is yielding 14.5% right now, and it's handed investors 72% total returns since 2008. Learn more about this stock - and 9 others - in this special report.
Pay Your Mortgage With Options?
Or, you could pay your car payment, take a trip to visit the grandkids or go on a long overdue vacation. It's possible thanks to the income generating power of options. And best of all, options are actually much safer than you've been led to believe - if you know what less than 1 in 4 investors know about using options to generate income. For a proven way to increase income in retirement, click here.

Double or Even Triple Your Income Stream Without Buying a Single Share of Stock

One of the best income strategies in the world involves a "glitch" in the financial markets. It allows individual investors to generate "Instant Income" from the best companies in the world. The best part, more than 80% of the time, in my experience, investors don't have to buy a single share of stock.

I've been using this strategy to deliver winning income trades for readers during the past few months. So far, the results have been great -- my strategy has allowed us to enjoy thousands of dollars in "Instant Income."

For example, we made $2,700 "Instant Income" from a $6,400 "down payment" on MasterCard (NYSE: MA) in July 2012. That's an immediate return of 42.2%. Last September, I collected $710 from Amazon (Nasdaq: AMZN), a company that's never paid a single dividend. And last October, I collected $125 "Instant Income" from Coach (NYSE: COH) for every $880 I set aside.
 
It's clear that this the strategy has a lot of income potential. Yet, less than 25% of investors are taking advantage of the "glitch" to generate income.

And I think I know why...

My "Instant Income" strategy involves one of the most misunderstood corners of the investing world: the options market. Many people avoid options because they have a reputation for being risky and complex, but the strategies I use are safer and simpler than you might imagine. In fact, my strategy takes advantage of risk-takers to generate steady income.

Many options traders lose money for one simple reason -- they're on the wrong side of the trade. In fact, more than 80% of options are worthless when they expire.

That may sound like a bad thing, but it's actually what makes my strategy successful. It involves selling, not buying options.

When we sell an option, we get money deposited in our brokerage accounts. It's called a premium, but I like to call it "Instant Income." We get paid upfront for options that more than likely will expire worthless in a few months -- meaning our "Instant Income" is pure profit.

It's this "glitch" in the options market that allows us to generate steady income from selling options on high-quality, undervalued stocks.

For example, with one option strategy I use, selling "put" options, one of two things can happen.

1. You receive "Instant Income" when you sell the option and keep it as pure profit -- without ever having to buy a stock.

Or...

2. You get the opportunity to buy shares of a company you would want to own anyway -- but at a discounted price. You'll even know the price up front before you ever make the trade.

Let me show you a recent example...

On Jan. 11, I recommended readers sell February $48 puts on Phillips 66 (NYSE: PSX) for a premium of $1.15. That's a put that expires on Feb. 16 and pays sellers a $1.15 per-share premium, or $115 per contract (a contract is for 100 shares). If shares of Phillips trade below $48, we'll be shareholders at a cost basis of $46.85 a share ($48 - $1.15, our premium).

When I sold the put, shares were trading at about $50.70, so our $46.85 cost basis would represent a 7.6% discount. Phillips 66 also sported an attractive price-to-earnings (P/E) ratio below 8. Based on the oil refiner's solid fundamentals, I'm more than comfortable owning the stock. But by selling puts, I can collect "Instant Income" without having to purchase shares outright. And if Phillips 66 trades below $48 before the options expire, I'll own shares at dirt-chap prices.

It's been four weeks since I recommended that trade, and the put option I recommended is more than likely going to expire worthless. Phillips 66 would need to fall more than 24% in the next five trading days before we would have to buy, or "put," the shares. This means the $115 in "Instant Income" per contract should represent our profit on a trade that lasted only five weeks.

This "Instant Income" strategy isn't for everyone. In fact, readers with less than $25,000 shouldn't use this strategy. But I explain all this and more in a special presentation I put together...

In it, I'll tell you more about the "glitch" in the financial markets that's allowing me to generate thousands of dollars from some the best companies in the world. CClick here to learn how to get started now.


Good Investing!

P.S. -- Don't miss a single issue! Add our address, Research@DividendOpportunities.com, to your Address Book or Safe List. For instructions, go here.

Disclosure: In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio. Members of our staff are restricted from buying or selling any securities for two weeks after being featured in our advisories or on our website, as monitored by our compliance officer.


Income Notes

Motorcycle icon Harley-Davidson (NYSE: HOG) raised its dividend 35.5%this week. It will pay 21 cents a share, up from 15.5 cents, for a yield of 1.2%.

--  Research Staff


10 Best Retirement Income Stocks Now

Some pay quarterly. Others pay monthly. All offer you a safer, more stable, and reliable source of high income even if the market goes down.

Get the full details and stock symbols here.


Breaking News

The $1,357 Per Month Income Strategy

Using this simple investing strategy, I'm earning over $1,300 a month in dividends...

Read On...


This Company Could Pay A 45% Dividend Yield

This "Dividend Vault" stock has already raised its quarterly payments 133% since 2011. With a $45 billion cash hoard, I expect those raises to keep coming...

Read On...


This "Retirement Savings Stock" Has Raised Its Dividend For 34 Consecutive Quarters

This company has one of the best dividend track records around... And it's still growing fast enough to keep it up...

Read On...


 


 

Home | Issue Archives | About Us | Meet the Staff | Subscribe
Premium Content
Research Reports | Media Coverage | Testimonials | Advertise

Dividend Opportunities is a publication by StreetAuthority, LLC, 4601 Spicewood Springs Rd, Building 3, Suite 100, Austin TX 78759 or www.StreetAuthority.com. You are receiving this newsletter because you visited us at StreetAuthority.com and registered to receive our complimentary investing newsletter -- Dividend Opportunities. If you feel you have received this issue in error, please follow the instructions below to unsubscribe or contact us by visiting our web site.

DISCLAIMER: StreetAuthority, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing StreetAuthority materials and web sites, you agree to our Terms and Conditions of Use, available here, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our web site.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in this report should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions.
StreetAuthority receives no compensation of any kind from any companies that may be mentioned in our newsletters or on our web site. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities discussed in this report or on our web site.

To Unsubscribe
You may choose to stop receiving our Dividend Opportunities newsletter at any time.
Unsubscribe here.

Subscribe for FREE

Subscribe to Dividend Opportunities today and you'll receive a FREE newsletter four times a week, plus a FREE in-depth research report that identifies some of today's highest-yielding securities.

There's absolutely nothing to purchase, we'll keep your email address private, and you can cancel at any time. You truly have nothing to lose, so take advantage of this no-hassle, risk-free offer today!

Click here to subscribe now.