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Technique #1: Generate Additional Income With Covered Calls With interest rates at rock bottom these days, buying stock and writing covered calls is a very safe strategy to increase your income. Stocks recommended in Zacks Advisor are ideal for this strategy. I think you'll be pleased to know that this strategy is so safe that many investors use covered calls to spiff up stodgy IRA accounts. In addition to dividend income, they are also generating income from writing covered calls. It's easy as falling off a log: If you own at least 100 shares of a stock, you can sell a call option against those shares to generate additional income. By already owning the underlying shares of stock you have eliminated your option risk. You still have stock risk, of course. But that's where Zacks Advisor and its top-rated stock recommendations come in. Those are the stocks you will own and have ready for covered call writing when the time is right. For example, let's say that Zacks Advisor originally recommended XYZ stock at 50 and it is now at 87. You have made a very big profit -- nearly a double. However, because of the runup Zacks Advisor now rates XYZ a "hold" and doesn't think that it will move much in the next several months. To generate additional income from your XYZ stock while you wait for its uptrend to continue you can write (sell) XYZ call options against each 100 shares that you already own. The risk from covered call writing is that if the stock moves too high, too fast, and you might have to sell it at a lower price than you might get by continuing to hold it. But that's all. You have no other risk. And don't forget, the stock has already made a big move. So by selling the stock you are locking in your profits rather than leaving them "on paper" and at risk of a sudden decline. Plus, you also have income you received from writing the covered call in your pocket. There's an old market saying, "you can't go broke by taking profits." That's what successful covered call writing helps you to do. You absolutely cannot lose money when you write covered calls on uptrending stocks. And if a stock is in a downtrend? Covered call writing helps here, too. The income you generate offsets some of the stock price decline. And if you decide to sell a stock, you can write "in-the-money" covered calls that pump even more money into your account while you wait for the stock to be sold. Technique #2: Buy Stocks at a Discount by Selling (Writing) Put Options Writing put options is a unique way to build a stock portfolio and earn additional income while you're doing so. Zacks Advisor currently recommends a broad range of different stocks. Let's use our fictional XYZ stock as an example of how put writing can put (no pun intended) additional cash in your pocket. For example, when Zacks Advisor made the recommendation to buy XYZ at 50, as a subscriber to The Super Option Report you would have two choices... 1) You could buy the stock at 50, its current market price, or 2) You could write (sell) an XYZ 45 put option. The income you receive is deposited into your account. If XYZ is below 45 when the put option expires, you will have to buy 100 shares of the stock at 45. But keep in mind, the stock is highly rated by Zacks Advisor and one which you probably wanted to buy anyway. Only now, you've bought it at 45, 5 points below Zacks Advisor's recommended price. You have reduced your risk by 10%, and increased your income while you did so. Not a bad deal, I'd say. But what if XYZ doesn't fall and instead rises in value. Well, you might kick yourself for missing out on some stock gains. But don't forget, the entire amount of income you earned from writing the option is still in your account, and you didn't buy a single share of stock!! Do you see now why big brokerage houses want to keep this strategy a secret from small investors? This is a very easy strategy to follow. In fact, your hardest chore might be to get your brokerage to allow you to make these trades!! As a Super Option subscriber you'll get specific instructions on how to place every trade we recommend. So what's the catch? I don't think there is one. Put writing gives you two incredible advantages no other tool gives you. First, you are forced to wait until a stock falls to a lower price before you buy it. That's advantage number one. Advantage number two is almost too good to be true... while you're waiting to buy the stock you receive additional income. Obviously, the key to success with this strategy is to only write puts on stocks you want to buy - such as the stocks recommended in Zacks Advisor. And please remember -- with your subscription to The Super Option Report you'll get detailed options selling instructions. PLUS -- if you ever need help making a trade -- e-mail Jeff Carter and you'll get a thoughtful response, usually within 24 hours. Technique #3: Advanced Strategies to Supercharge Your Profits -- A Sharp Technique that can actually get you FREE investments Our third technique uses strategies, some of which were pioneered by Jeff Carter can send your option income into orbit. This third technique uses LEAP options or long term options. Instead of actually buying the stock and typing up tens of thousands of dollars we recommend buying LEAP options for what amounts to pennies on the dollar, then sell covered calls against the LEAPs. You need less capital outlay to begin and you can triple and even quadruple your covered-call profit percentage. Not only that, but in the past Jeff has actually been able to generate enough income from the covered calls to completely offset the cost of the LEAP. In other words, you could end up with a free investment!! Technique #4: Another strategy Jeff uses is sure to delight investors who like to buy index mutual funds. Jeff uses what are technically called "call credit spreads" to create covered call positions on popular indexes. He combines this with the absolute best index funds to use to maximize your profits. You can also use credit spreads to reduce risk with writing puts, and to remove the risk of losing a stock to a covered call. As I said, these strategies are simple to employ since every issue of The Super Option Report gives you detailed instructions on how to set up your trades.
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