What is Options Cash Cow?
The Options Cash Cow alert service is perfect for investors looking for new ways to make weekly income. With this income-generating trading strategy, you can:
- Become the SELLER of options instead of the buyer. This way every time you enter a trade you are paid a premium upfront by the buyer. So you’re in the black right from the start.
- Take advantage of time decay. Since 80% or more of options contracts expire worthless (according to the Chicago Board Options Exchange) it makes sense for you to secure a position where you make a profit on those worthless expired options. Using credit spreads is what puts you in that coveted position.
- Use credit spreads to hedge your trades. So you can make a profit on a trade moving down against your assumptions… moving up against your assumptions… or sitting virtually still.
With a credit spread, you sell and buy a put option or call option on the same security with the same expiration month. The option being sold is closer to the current market price and thus more expensive. Selling that option and buying the option further out of the money creates your credit amount, or option premium collected. This money goes directly into your trading account. The objective is for both options to expire worthless so you can keep all of the credit (profit) in your account.