Make 30% Per Year by Selling Puts on One of the Best Companies in the World
In this video I show you how selling puts on a really fantastic company will earn you 30% per year. I breakdown the calculation and show you how to screen for these companies right in Tiblio's Cash Secured Put screener.
A company like Intel, INTC, a very stable company we see the max return is 2.9%. We can earn that every 35 days selling this put. So now we just need to annualize that to get our annual return if we sold this put continuously throughout the year. We'll find that by selling this put option, we can earn option premium income of 30% per year.
You might wonder what we do when we're assigned on our put option. There's basically 3 things you can do once your assigned. You can hold the shares and wait for a rebound, which is perfectly valid for a great company like Intel. You can dump them, take a loss and continue selling puts. Or you can hold the shares and sell call options.
If you choose the last option, you continue raking in the option income. That's effectively the Wheel Strategy. Remember you can automate this entire strategy using Tiblio AI's assistant, Roger. Click the link below to get started.