The Ultimate Income Checklist

Karim Rahemtulla By Karim Rahemtulla
Options Strategist, The Oxford Club

Alternative Income

It’s been a heck of a year for my Automatic Trading Millionaire service. It’s a put-selling service with a big twist. And it’s important that you pay close attention to what we’re doing…

Because this year we’ve had no losers.

And while many might chalk it up to luck or a bull market, there’s more to it than that. Yes, luck and a bull market don’t hurt, but this is a strategy that does even better in a bear market!

Our strategy is simple but requires discipline. We try to buy stocks at huge discounts to their current prices or get paid for trying. It’s like building in a correction without missing the buying opportunity at the low. We’ve been getting paid a lot of cash this year.

The last tally is close to $3 million in cash taken in by my readers since the end of March. And the downside? We could have bought companies such as Wells Fargo (NYSE: WFC), Southwest Airlines (NYSE: LUV), Phillips 66 (NYSE: PSX), Halliburton (NYSE: HAL) and dozens more at discounts of up to 50% below where they were trading. Heck, we almost got to buy U.S. Steel (NYSE: X) for less than $17 per share! (I wish we had… it’s $33 now.)

But none of these gains would have been possible if not for one simple step taken by all my readers. They had to spend five minutes setting up an options account. Really. It takes just five minutes to get in on the most successful trading service at The Oxford Club this year.

Do you have an options account set up? No? Then let me show you how to do it, lickety-split!

  • First, you must have a regular stock trading account.
  • Next, call your broker or get online and go to the place in your account that deals with client services or “options.”
  • Fill out a form that asks you what types of trades you want to do. Select “options.” Then it’ll ask you the type of options trades. The easiest ones to qualify for are “long” and “covered call” trades. Both are no brainers for the broker since they have nothing at risk. These are Level 1 and Level 2 accounts.

The one you want to select is Level 5. This gives you the ability to sell puts using the broker’s money – better known as “margin.” This allows you to use as little as 10% of your capital to do a trade.

Normally, I say “never touch margin” because people use it for the wrong reason. But if you use it for the right reason, with the right strategy and discipline, then you are crazy not to use it. When you buy a house with 20% down, you are basically using margin for the other 80%.

  • Once you are approved to sell puts and have opened a margin account, you’re ready to go. It’s that simple. The broker will require that you have a certain amount of equity in your account. Probably between $15,000 and $25,000 to get started. This equity is what is used to buy the stocks in the event you get put or don’t exit the trade before expiration.

However, so far, none of my readers have had to use the equity to buy any shares. But it’s possible.

Using the strategy I use, we’ll probably get put or use a different strategy to exit the trade around 20% of the time. But the flipside is that if we do get put, it means we just bought the shares of a blue chip company 20% to 50% below what everyone else paid for the same shares when we made the trade. So it’s a win-win situation any way you slice it.

That’s not the case for everyone who sells puts. The vast majority of people don’t have a strategy. All they care about is chasing the dollars you get when you sell the put. (You see, you don’t have to put up any cash to do this – you get cash upfront that is yours to keep forever.)

So what they end up doing is selling puts on volatile, speculative stocks and – yep, you guessed it – they get put or lose money. It’s all about greed, and I know that greed is a tough emotion to overcome when it comes to investing.

But that’s why I am here. I will be in charge of picking the right company with the right discount and the right probabilities of either owning or not owning the underlying shares. Most importantly, I will be that barrier between greed and disciplined investing. This is all about winning, and that means you must have a system in place that gives you the best odds!

On Wednesday, December 20, I’m holding a free live training event that will show attendees how to use my put-selling strategy successfully. To learn more and claim your spot, click here now.

Good investing,