Long Term Triple Income Strategy

Alright if you’re unfamiliar with the Long Term Triple Income Strategy, here it is.

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This is not some trick to get quick profits. This is an amazing method to earn $ on shares you don’t own, and get paid dividends on shares you do own. You must do this with a stock you want to own. This is not a great strategy if you don’t want to own the shares for at least for few month.

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Scenario 1 – Find a stock you would like to own. You will then sell cash covered puts on it. You collect the $ from selling puts, they expire worthless, you keep the $ and profited from doing nothing.

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Scenario 2 – you sell puts, get assigned when the stock falls to that level, and you get 100 shares for the price you chose. Now, the fun happens. You can start selling covered calls. Sell strikes that are higher than what you paid.

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Once assigned, you will have profited from the premium of the put selling, the premium of the call selling, and the increase in price from what you bought it at vs what you sold it at. This is proven to pay more $ than owning dividend stocks.

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Okay, you want to add BLNK to your long term portfolio but you think $37 is too high and you can get a better price. So how do you get a lower price? Bid. Selling a put is a way of bidding. If BLNK hits $33 by next Friday, we will buy 100 shares for $33. We got paid $115 for selling the put, so really our BLNK shares have a total price of $31.85 each, which is our break even price.

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Instead of just buying the shares from the beginning, you will sell puts until you get assigned. Each time you sell a put and then close it for profit, you are earning $ off of the stock. If you sell 1 put for 1.00 a week for a month, you will profit $400 that month from selling puts. Now if you get assigned on the 5th week at $33, you actually only paid $29 because you already profited $400.

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Once you own the shares you can either keep them long term and sell far OTM calls and only collect a small amount of money, or you can be aggressive and sell the next strike up. If you paid $33 for your shares, you would want to sell at least a $34 call.

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This will let you profit from selling the call (calls are about $250) and the increase from your purchase price of $33 to your selling price of $34, which is $100.

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In total, you made $115 from selling the put, $250 from selling the call, and $100 from the shares increasing in price. This gives you a total profit of $465 just from owning 100 shares of a stock that moved $1.