Option IncomeOptions are a fantastic tool to create the weekly and/or monthly income that we need to support our lifestyle. Selling options is selling a financial insurance product. As the seller we are also the underwriter of the policy. When selling an option contract only one of two possible outcomes can happen...either you will get assigned the underlying asset at the strike price (coverage policy) or you will not. Either way you keep the premium income as profit.
In this way we can sell a put option to acquire the asset with the intent of getting assigned and then we can sell a call option at an acceptable profit target.
Always be selling!
The weekly income trade can be found at tetrapro.wordpress.com
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Please trade responsibly.
Option
Option IncomeSelling options for income is one of the best conservative ways to increase returns. When I sell an option contract, I am selling a financial insurance product to the market. I am acting as the underwriter of the policy. For this particular market, I am selling the policy with the coverage at a strong support level. Please keep in mind that this market is based off of the fear index or the VIX. There will always be some level of uncertainty in the market. For this reason I sell put options for income. In the event that we get assigned, we have an asset set to be elevated with the uncertainty of the S&P500 index. Furthermore, once we get the underlying asset we can simply sell a call option at some acceptable profit target and continue to generate consistent weekly and monthly cash flow.
A picture is worth a thousand words...
Please trade responsibly.