No Fluff, No Hype, Just Income

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 Income Trader subscribers to enjoy thousands of dollars in “Instant Income” since I first launched my service in Februrary.

But you don’t have to take my word for it, here’s what one subscriber had to say:

“Great advice. Very clear to understand. [Income Trader] is a must for anyone interested in making money. No fluff, no hype. Just $$$$. I demo traded a few months before going live and was amazed at the results. I’ve been subscribing to newlsetters for years and this by far is the best one.”

Using my strategy, subscribers collected $130 “Instant Income” from a $520 “down payment” on Questcor Pharmaceuticals (Nasdaq: QCOR) in April. That’s an immediate return of 25% in just 43 days, or 212% a year. And in July, we collected $100 in “Instant Income” from OSI Systems (Nasdaq: OSIS) — a company that’s never paid a single dividend — for a return of 11.1% in 45 days, or 90.1% a year. I’ve listed of all my closed trades from this year here.

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 we don’t have to buy shares and 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 July 18, I recommended readers sell puts on Carbo Ceramics (NYSE: CRR), a company heavily involved in hydraulic facturing, or fracking, a process used to extract oil and gas from rock formations.

Specifically, I advised readers to sell the Sept. $60 puts on CRR for a premium of $0.90. That’s a put that expires on Sept. 21 and pays sellers a $0.90 per-share premium, or $90 per contract (a contract is for 100 shares). If shares of carbo Ceramics trade below $60, we’ll be shareholders at a cost basis of $59.10 a share ($60 – $0.90, our premium).

When I sold the put, shares were trading at about $76, so our $59.10 cost basis would represent a 22.2% discount. At $59.10 a share, we’d own CRR at 13.5 times 2014 earnings, a deep discount for a company that’s grown earnings at an average rate of 18% a year in the past five years. Based on the company’s solid fundamentals and dividend growth history, 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 CRR trades below $60 before the options expire, I’ll own shares at dirt-cheap 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. CRR would need to fall more than 30% in the next 36 days before we would have to buy, or be put, the shares. This means the $90 in “Instant Income” per contract should represent our profit on a trade that lasted only 65 days.

Remember, this is how much income was made per contract. You can scale up as much as you want. If you had sold 20 contracts, you would have made $1,800, for example.

In fact, just this year, my recommendations would have made subscribers a minimum of $1,873. But readers are easily scaling up to make $6,000… $19,500… or even just under $150,000.

If doubling or even tripling your income stream without buying a single share of stock — in any kind of market — sounds appealing to you, you can start your subscription of Income Trader and get access to my latest research by clicking here

P.S. — At the time of this writing, the Dow has shed 300 points in just two trading days. Could this be the ‘Triple Top’ threat that I’ve been warning about? The one that could lead to a 60% market plunge? To find out more about this wealth-crushing threat — and exactly how you can keep generating income, regardless of what the market does — I urge you to read my brand new report, here.