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TRANSCRIPT
Hello and welcome to Dividend Multiplier. I’m Marc Lichtenfeld. You’re about to embark on a journey to earn substantially more income from the stock market than you ever thought possible. And we’re going to do it with proven, conservative strategies.
Thanks to the techniques used in Dividend Multiplier, you can significantly boost your annual income… without the excessive risk often associated with double-digit yields.
With Dividend Multiplier, we use two different option strategies: covered calls and put sells.
In this video, I am going to give you a brief summary of how each of these strategies works. But I have also created two separate tutorial videos showing you how to execute each strategy step by step. I will send you these training videos over the next two days, so stay tuned. But if you are itching to get started now, you can check them out on the password-protected Dividend Multiplier section of OxfordClub.com.
Let’s touch base on put selling first.
A buyer of a put option is betting that the stock will go lower. But there is an opposite side to the trade, and that’s where Dividend Multiplier comes in.
Put selling, or selling naked puts, is a conservative strategy for generating income in your portfolio.
If you sell a put option, then you are basically saying that if a stock falls to a certain level, you are willing to buy those shares… at the price you want.
A buyer of a put is essentially buying insurance against his or her stock going down. As the put seller, you are the insurance company, collecting premiums. Insurance companies make a lot of money.
The risk is that, if you are wrong, the stock drops to your price and you have to buy the stock. That’s not the end of the world, because now you’re buying a quality stock at a lower price that you already determined you were willing to pay. You should sell puts on only those stocks that you are willing to buy at the predetermined price that you agreed to.
When you sell a put option, you receive cash… cold hard cash. It’s deposited in your account immediately, and it’s yours to keep. The trade is really that simple. I’ll go into greater detail in my put selling tutorial video. Stay tuned for that over the next few days.
Next up is a quick look at covered calls.
When it comes to selling covered calls, Dividend Multiplier provides a simple and conservative way that you can generate 20% or greater annual yields with just a few trades a year. And the best part is you’ll “rent” quality dividend-paying companies without having to go way out on the risk spectrum. The reason I say “rent” is because we will most likely own these stocks for a very short period of time.
We’re not investing in these stocks for capital gains, but for the income from the dividend and the premium from the calls.
We don’t care if we own a stock for three weeks, three months or three years as long as the position is generating strong double-digit yields. In most cases, we’ll own the stock for just a few weeks, collecting a year or more’s worth of income in that short period of time.
Covered calls are the most conservative method of using options. To sell a covered call, you buy a stock and sell a call. You are agreeing to sell your stock to the call buyer at a specific price, which, in the case of Dividend Multiplier, is always a little bit higher than where you bought the stock.
In the put selling example, I said that selling puts was like acting as an insurance company. I have another analogy for you. When you sell covered calls, you’re the casino. Notice, I didn’t say you’re betting in the casino. YOU are the casino. You’re the house. And what do we know about the house? It always wins.
The house doesn’t win every bet, but it wins over the long term.
A call buyer is betting that the stock will go up. If it does, you keep the buyer’s bet and sell him or her the stock at the slightly higher price. If the stock does not go higher, you still keep the bet. During the time that we’re waiting to see if the buyer’s bet will work out, we hold the stock and collect the dividend. So there are two and possibly three sources of income on a covered call:
1) The option premium that we collect for selling the call
2) The dividend
3) A capital gain for selling the stock higher than where we bought it.
It couldn’t be easier. And I’ll go over how to execute a trade step by step in my covered call training video, which I will send to you in the next two days.
You need to be approved by your broker to trade options, so if you’re not already, talk to your broker about getting approved to sell covered calls and naked puts. It’s a very easy process.
You always hear people saying, “high rewards come with high risk.” That’s not what we’re about with Dividend Multiplier. We want low risk and good rewards. We want consistent returns that beat the pants off fixed income and do it with low risk. That is exactly what we aim to do in Dividend Multiplier.
When I issue a new recommendation, I’ll include a write-up on the opportunity and the action to take. And you will know right away what types of returns we will be looking for.
Don’t worry if you ever miss an email from me. All alerts can be found on the Dividend Multiplier section of The Oxford Club’s website. You’ll need your username and password to access it.
For that information, be sure to check the confirmation email you received after signing up. It will also be provided at the bottom of every email you receive from Dividend Multiplier.
If you have any questions about the service or a recommendation I’ve made, or if you want to share any success you’ve had, you can send an email to feedback@oxfordclub.com.
Again, congratulations on joining Dividend Multiplier… You’ve just taken a big step toward creating more income for you and your loved ones.
And remember, I’ll give you a more in-depth explanation of exactly how to place the trades in my training videos, which I will be sending you over the next two days.