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Equity Protected Equity Fixed Income OPTION INCOME Real Estate
Option Income™
How do I
create income from equity options?
Your success is in our research™
Appropriate for: Individual investments.
Investment style:
Protected short option income strategy.
Objective:
Cash flow accumulation with
limited risk of loss.
Description:
A limited-risk portfolio of strategically protected short options. Sell Put option (short), buy protective Put option (long).
Risk/Reward:
Risk is limited by a Put option.
Reward is limited to the Put option income.
Example: Among various examples, one example is: Sell a Put option at the $35 strike price when the stock is below $35, and buy a protective Put option at the $30 strike price. The net difference is potential cash flow accumulation. When the stock price goes sufficiently above the $35 strike price both positions may be closed out anytime up to the expiration date of the option or, expire worthless on the expiration date of the option. Should the stock price remain between the strike prices, the position may gain, loose or breakeven. Should the stock price drop and remain below the $30 strike price: a) before option expiration you may close both option positions; b) at option expiration you may simultaneously purchase the stock at the 35 strike price and exercise the Put option by selling the stock at the $30 strike price. Any potential loss would be limited to the difference between the strike prices less net cash received from the sell and purchase of the Put Options. For additional information, see: Basic Option Definitions.
Comment: The Option Income™ program is designed to limit risk in equity markets. When you prefer a cash flow return vs. appreciation, prefer being paid not to buy a stock until it comes down to a lower price, and/or want to earn money market interest on cash return while holding the investment, then, this may be the investment objective for you. This style of investment is appropriate for equity income investors in most equity markets, especially fluctuating markets where accumulating cash flow without significant downside risk is an advantage. This investment style limits risk, it does not eliminate it. It is important to have good research. Our firm follows hundreds of option stocks and, only after careful evaluation do we select equity options considered for selling short and purchasing. Your success is in our research, and trading capabilities.
Option Income™ program is an excellent choice for
equity income investors. If a limited-risk option income accumulation strategy is
right for you, then contact us for more information!
Contact us for a FREE Initial Portfolio
Evaluation & Consultation and receive copies of the Executive Advisors™, and the Options Clearing Corporation
disclosure documents.
We are committed to your success!
(503) 581-7111 / (800) 473-3171
Equity Protected Equity Fixed Income OPTION INCOME Real Estate
Home About Us Wealth Manager™ Executive Counsel™ Contact Us
PERFORMANCE INFORMATION IS SUBJECT TO CHANGE. Equity and equity option accounts are subject to certain risks and are affected by fluctuating common stock and/or equity option prices and any implied performance is not a guarantee of possible future returns. For more information please refer to "Characteristics & Risks of Standardized Options" and the Executive Advisors LLC Oregon/SEC disclosure documents by calling (503) 581-7111 or emailing CEO@ExecutiveAdvisors.com.
INFORMATION DISCLOSURE NOTICE: This information is obtained from internal and external sources that are considered reliable, but the information's accuracy is not guaranteed by Executive Advisors LLC. Neither the information nor any opinion that may be expressed constitutes a solicitation by Executive Advisors LLC for the purchase or sale of any security referred to herein. This firm and/or its officers, managers or members and/or members of their families may have a position in the securities mentioned and/or options relating to these securities and may make purchase and/or sales of these securities and/or options relating to these securities from time to time on the open market or otherwise.
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