Financial Freedom with Covered Calls and Cash Secured Puts

"Hey boss, I quit." Moments before endless happiness was achieved in your life. That's the power of financial freedom. All you have to do is sit at home and have cashflow coming into your bare pockets. This strategy I'm presenting doesn't require advance knowledge, but basic understanding and research in the stock market. You also don't need a fortune to start your journey. To receive your first weekly payment you will need 100 shares of a single stock!

Covered calls and cash secured puts are an awesome way to generate income and can become your gateway to financial freedom! But what are covered calls? Let's dive in!

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Covered Calls

Covered Calls - a financial market transaction in which the seller of call options owns the corresponding amount of the underlying instrument, such as shares of a stock or other securities.

To start with covered calls you will need 100 shares of a stock. Make sure the stock you select is a strong company with proven history of growth and stability. Ex companies: Apple, Amazon, Microsoft, Alibaba, Tesla ... much more. Build a list of stocks you would like to hold long term and will appreciate in value.

Next step, make sure the stock has weekly options available. You can click on the "options" button on a certain stock and check the dates available. If it shows weekly then this stock is suitable for you.

Then come every Monday you can sell your ownership of 100 shares to someone as an option saying that it's going to hit a certain strike price. If it doesn't then the contract expires, you keep your shares and your premium. However if the strike price is reached by the expire date then you are obligated to sell your shares. You keep your profit/loss from the trade and your premium. It's always a good idea to have a target price higher than your average cost per share because if it does reach the strike price, you can sell it for a profit.

The only risk you have is if the price goes up tremendously and the contract expires then you will have to sell your stocks, but not receive the profit at that price. You will only receive the profit at the strike price.

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Example:

You bought Stock A for $10 each costing you $1000.

You sold your option for the week with a strike price of $11.

You receive a premium of $5.

Scenario 1: The stock stays under strike price

You keep your premium and the shares are returned after the expiration date. You can repeat this again and receive another premium.

Scenario 2: The stock finishes above the strike price.

You still keep your premium and the shares are sold. If the stock reached a $100 then you still have to sell it at $11 because of your strike price. You get a return of 10% + your premium.

The only risk is missing out on potential gains, but you won't ever lose money.... unless....

So since you sold these options to someone, you don't own the shares anymore. So, if the stock drops 50% in a day, you can't sell it because you don't have it! The only way to sell your shares is to buy back the option and then sell. This is why it's important to choose good companies or companies you will hold long term!

The understanding is very simple and when you do it, it's much easier! All you have to do is click 2 buttons and receive your money to your account. You can use it to reinvest and make more money or treat yourself!!!

Now make sure you have enough capital for this, as mentioned earlier you need a 100 shares of a stock. So Apple currently trading at $120, you will need $12,000 to start earning weekly income. But, if you wanted a stock like Amazon you would need $300,000 to start earning weekly income! So, make sure to choose the stock that will fit your budget. There are cheap stocks with a lot of value that can earn you money weekly along with capital gains.

I advise investing a good portion of your paycheck into a strong company until you have 100 shares. Then you can start earning money with this along with your paycheck. Then continue buying stocks until you have that amount. Slowly, but surely you'll be able to have 2 good sources of income. Your job and covered calls. You can keep repeating the process and eventually your covered call income will surpass your job! Now that's financial freedom!

You can start today with Robinhood... if you use my link we will both get a free stock. Click this link -> https://join.robinhood.com/johnt1745

Cash Covered Puts

Cash Covered Puts is similar to covered calls, but a little more risk. With cash covered puts you need to have enough money to purchase 100 shares of a company at the certain strike price.

Ex:

You want to buy 100 shares of Apple, but it's too expensive now at $100. You would rather have it at $90 per share.

You sell a cash covered put for $90 and you receive a $100 premium. The broker automatically takes $9,000 from your account to secure it if the price of Apple goes to $90 or below.

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Scenario 1: The stock trades above your strike price.

You receive your money back and you keep the premium.

Scenario 2: The stock trades below or at strike price.

You keep your premium and you get 100 shares of that stock at that price. So if the stock fell below the strike price, then you will still have to buy it at the strike price. That's the downside of this, but if it's a strong company then it will definitely have a comeback and you will earn more money!

You can start today with Robinhood... if you use my link we will both get a free stock. Click this link -> https://join.robinhood.com/johnt1745

Summary

This is how you start your journey to financial freedom. Covered calls and cash covered puts are an awesome way to start creating income. You can start today with Robinhood... if you use my link we will both get a free stock. Click this link -> https://join.robinhood.com/johnt1745