Trading Options – Money for Nothing!!

Written by Emilu Bailes on . Posted in Instructors Blog

Who remembers that tune by Dire Straits in 1985? I didn’t know how to create “money for nothing” in 1985, but now I do!

29704v2 max 450x450 Trading Options   Money for Nothing!!

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Before I learned how to trade OPTIONS AROUND A CORE POSITION, I simply bought and held stock. Unfortunately, I didn’t know when to close those positions. So many times I watched profits evaporate, or turn into losses! Nor did I know how to generate income from the long stock. “OptionsAnimal, you’re the best!”

My current position in Abbott Laboratories (ABT) is a good example of an income generating strategy for my Conservative Portfolio. I bought 1500 shares of ABT in October 2009 at $51.28. Although I have received two dividend payments since that purchase (Total = $1260) the price of the stock has dropped to 47.00ish at this writing. That represents a loss of $5160.00 (this figure includes the income from dividends.)

On the other hand, by applying the methods learned at OptionsAnimal, I have generated income on my long position of $9,715.00. When added to the dividends received, my position is now profitable by $10,975!!! For a stable, but stagnant to slightly bearish stock, that’s how we can make Money For Nothing!!! “That’s What I’m Talkin’ About!”

Emilu Bailes
OptionsANIMAL Instructor

 Trading Options   Money for Nothing!!

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