Passive Income Trade Alerts: Passive Trading Income with Options
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Investing Wizard Who Turned $37K Into $2.7M in Just 4 Years Makes His Next Big Move
He started from nothing and became a multimillionaire…
He’s now one of the most sought-after trading experts…
Yet he operates 858 miles from Wall Street.
And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.
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If you’re looking for a way to generate income from your investment portfolio without having to actively manage it, then options trading may be right for you.
Options offer the opportunity to generate income through the sale of option contracts, as well as through the passage of time and the natural decay of options premium.
In this guide, we’ll take a look at what options are, how they work, and some strategies you can use to generate income from your options trading.
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These alerts services make it even easier to make passive income from options trading. They do the due diligence and research for you and give you recommendations on what to do.
- ThetaTraderz.com is a great service for selling cash secured puts for income. You get 14 days for free.
- Bullseye Trades is a great income trade alerts service for buying options. Here is my detailed review.
- TheoTrades is a great options selling and spreads service (free eBook here).
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What are Options?
An option is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. There are two types of options: call options and put options.
Call Options
A call option gives the holder the right to buy an underlying asset at a specified price on or before a certain date. For example, you might purchase a call option on XYZ stock with a strike price of $50 that expires in two months. This means that you have the right to buy XYZ stock for $50 per share anytime in the next two months.
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Investing Wizard Who Turned $37K Into $2.7M in Just 4 Years Makes His Next Big Move
He started from nothing and became a multimillionaire…
He’s now one of the most sought-after trading experts…
Yet he operates 858 miles from Wall Street.
And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.
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Passive Trading Income with Options: Put Options
A put option gives the holder the right to sell an underlying asset at a specified price on or before a certain date. For example, you might purchase a put option on XYZ stock with a strike price of $50 that expires in two months. This means that you have the right to sell XYZ stock for $50 per share anytime in the next two months.
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How do Options Work?
Options are a type of derivative, which means they derive their value from an underlying asset.
In the case of options, that underlying asset is typically a stock or other financial instrument. The option contract gives the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before a certain date.
The price at which the holder can buy or sell the underlying asset is known as the strike price. The date on which the option expires is known as the expiration date. And the fee paid for the option contract is known as the premium.
When you purchase an options contract, you are not required to do anything. You can simply let the contract expire if you don’t want to exercise your option. However, if you do want to exercise your option, you will need to notify your broker and take action to buy or sell the underlying asset at the strike price.
It’s also important to note that options contracts are not standardized like other financial instruments. This means that the terms of each options contract will be unique and will be determined by the buyer and seller of the contract.
Bullseye Trades: Best Alerts Service
Every Monday at the market open, Jeff sends you his weekly Bullseye Trade.
2022 has been AMAZING for these Bullseye Trades!
(+50% to 300% per week in my experience)
Passive Trading Income with Options: Why Trade Options?
There are a number of reasons why you might want to trade options. Perhaps you’re looking for a way to generate income from your investment portfolio without having to actively manage it. Or, you might be looking for a way to hedge your portfolio against risk. Options can also be used to speculate on the direction of a particular asset.
Selling Options Contracts for Passive Income
Options offer the opportunity to generate income through the sale of option contracts, as well as through the passage of time and the natural decay of options premium.
When you sell an options contract, you collect the premium from the buyer. This is income that you can use to offset other investment costs or simply hold onto for cash flow purposes.
In addition, all options contracts have an expiration date.
As that expiration date approaches, the value of the options contract will decay. This is known as time decay or theta decay. If you’re long a call option, time decay works against you. However, if you’re short a call option, time decay works in your favor.
Thus, selling options can be a great way to generate passive income on a regular basis, without having to put forth a lot of effort.
Here are some of my favorite passive income trade alerts services
These alerts services make it even easier to make passive income from options trading. They do the due diligence and research for you and give you recommendations on what to do.
- ThetaTraderz.com is a great service for selling cash secured puts for income. You get 14 days for free.
- Bullseye Trades is a great income trade alerts service for buying options. Here is my detailed review.
- TheoTrades is a great options selling and spreads service (free eBook here).
Here is one of my favorite passive income trade alerts service option books (free).
Speculating on the Direction of an Asset
Another reason why you might trade options is to speculate on the direction of an underlying asset. If you think that a particular asset is going to go up in value, you can purchase a call option. And if you think that an asset is going to go down in value, you can purchase a put option.
Of course, when you speculate on the direction of an asset, there is always the risk that you’re wrong. If the asset doesn’t move in the direction you anticipated, you will lose money. However, options can offer a way to limit your risk.
For example, let’s say you purchase a call option on XYZ stock with a strike price of $50 and an expiration date of two months. This gives you the right to buy XYZ stock for $50 per share anytime in the next two months.
Suppose XYZ stock is currently trading at $48 per share. This means that if you exercise your option, you would be purchasing the stock at $2 above the current market price. Thus, there is some downside protection built into the option contract.
On the other hand, if XYZ stock is trading at $52 per share, you would be purchasing the stock at $2 below the current market price. In this case, there is upside potential built into the contract.
Limited Time Deal to Purchase Nate Bear’s Profit Surge Trader ASAP HERE
You can also watch a full interview with Nathan Bear discussing the Profit Surge Trader system here.
***********************************************************************************************************************************
Investing Wizard Who Turned $37K Into $2.7M in Just 4 Years Makes His Next Big Move
He started from nothing and became a multimillionaire…
He’s now one of the most sought-after trading experts…
Yet he operates 858 miles from Wall Street.
And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.
************************************************************************************************************************
Hedging Your Portfolio against Risk
Lastly, options can be used to hedge your portfolio against risk. For example, suppose you own a stock that you’re worried might go down in value. You can hedge your position by purchasing a put option on that stock. If the stock does decline in value, the put option will increase in value and offset some of your losses.
Options can also be used to hedge against fluctuations in the overall market. For example, if you’re worried about a decrease in the stock market, you can purchase a put option on a broad-based index like the S&P 500.
Passive Income Trade Alerts: Conclusions
Options trading can be a great way to generate passive income. However, it’s important to remember that options trading is a risky endeavor. Before you begin trading options, it’s important to understand the risks involved.
Passive income trade alerts can make it even more passive to make money with options!
These alerts services make it even easier to make passive income from options trading. They do the due diligence and research for you and give you recommendations on what to do.
- ThetaTraderz.com is a great service for selling cash secured puts for income. You get 14 days for free.
- Bullseye Trades is a great income trade alerts service for buying options. Here is my detailed review.
- TheoTrades is a great options selling and spreads service (free eBook here).
Russell
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