One of the most common trading strategies used by successful traders, for generating cashflow, is covered calls or buy/writes. This is a strategy that has the potential to significantly increase your returns – above and beyond that of simply shares.
According to the ASX, a recent study* has shown that “through a range of active and passive covered call strategies, you can make your shares work up to 7.25%pa harder”
Often, investors spend a lot of time working out the relative benefits and weaknesses of using this stock options strategy on either Australian or US stocks. Some use clumsy tools and even the newspaper to try and find out the best opportunities for them. At times they don’t know what do next, if the share price moves up, if it falls or if it stays static. When it all gets too hard, most investors seek input from a specialist advisor to assist them with placing or managing the position.
But, what if…
You had just one Australian broking account, with and ASX participant, that lets you trade both Australian and US, with one of the cheapest levels of brokerage around. No difficulty in sending money overseas – to who knows who! Most importantly, support is just a phone call away – help at the end of the phone, throughout the trading day.
Starting to tick some boxes, I am guessing…
You had tools that in seconds, enabled you to scan the entire market – either Australian or US, providing you with the trades that suit your criteria. Search for income by percentage, by stocks, by sector, by expiry month – all at your finger tips and literally in seconds.
What kind of impact would that have on your trading?
What if each trading opportunity that you selected came with its own “what to do in the event of” procedure – helping you confidently manage the trade toward the outcome that you want?
You could simply click a mouse three times and the work was done – no platform, no execution risk and no costly full service brokerage?
If anything above strikes a chord with you, then register here we can help you by providing all the above, in one simple and easy to use format – what we call Options Made Easy.
Register here for an opportunity to try all of this free of charge so you can see how we can make Options Easy for you.
*An Encyclopaedia of Australian Buy-Write Returns (April 2005-December 2011) Edition 36
Approval number AIE071112-01