Puts and calls survey results and the outcome of selling Novavax puts and calls

Our October 1 survey asked two questions of members and subscribers.

    1. Can people improve investment results by selling puts and calls? The survey results follow:

Possibly 66.7%, Unlikely 8.3%, Yes 25%, No 0%

2. I am interested in seeing posts dealing with puts and calls.

Yes 88.9%, No 11.1 %

As a result, we will continue commenting on puts and calls but we will do so briefly.

Members and subscribers who wrote puts and calls on Novavax (NVAX) at market opening as we mentioned yesterday, October 5, earned $588.00 for each $10,400.00 invested for the week. That works out to 5.65% return for the week (about $60,000 per million per week.)

Here is how they did it:

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The practical Money Tree – a useful idea applied to Novavax derivatives income, Oct. 5 2020

Our September 28 post talked about the difficulty of generating income in today’s low-interest environment. We stated that some of our members and subscribers are generating income by selling puts and calls. Some of our members are doing exactly that with Novavax (NVAX).

This is an update describing what is (likely) possible, selling NVAX derivatives today when the market opens at 9:30 AM Eastern Time today.

Based on the October 2 (last Friday) closing just out-of-the-money  covered calls (NVAX C 09OCT20 104.00 US) or just in-the-money cash-secured puts (NVAX P 09OCT20 103.00 US) premium bid/ask spread, we estimate that investors could (likely) earn $600 per $10,400.00 safely (about $60,000 per million) when the market opens .

Again, investors can bank the income received.

Note that the  Monday Morning Program recommends passive investing — watching grass grow, watching paint dry. Selling puts and calls is NOT passive investing. However, our members with a moderate risk tolerance level have been doing it, often safely and successfully.

What is the worst that can happen from now until expiration date?

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A tested way to earn amazing income; followup

Yesterday’s (September 28) post talked about the difficulty of generating income in today’s low-interest environment. We stated that some of our members and subscribers are generating income by selling puts and calls.

Based on Friday’s closing premium bid/ask spread on Novavax (symbol NVAX) puts and calls ($5.25/$6.25), we estimated that investors could (likely) earn $600 per $11,400 safely this week. (About $60,000 per million)

When the market opened yesterday, the actual premium received writing just out-of-the-money covered calls on NVAX, expiry date this coming Friday, was $5.24 per share. (C 02OCT20 115.00)

That produced an income of $524.00 per contract which was priced at $11,500.00. ($52,400.00 per million)

However, the stock closed at $111.18, down $3.82 per share. Overall, investors are ahead $142.00 per contract ($14,200.00 per million) for the day.

Here is how we calculate that.

  • The drop of $3.82 per share = $382.00 per contract.
  • Per contract income received = $524.00 minus $382.00 = $142.00

There is no way of knowing where the stock will be at expiry date this coming Friday. Investors could easily have a loss on the overall transaction. However, we need to look at this approach as a money tree that grows and withers alternatively. The loss is something that we can ignore. It will recur regularly.

Investors can bank the income received.

Note that the  Monday Morning Program recommends passive investing — watching grass grow, watching paint dry. Selling puts and calls is NOT passive investing. However, our members with a moderate risk tolerance level have been doing it, often safely and successfully.

What is the worst that can happen from now until expiration date?

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A tested way to earn amazing income

On Friday, September 25, we wrote about the challenge of generating income in today’s low-interest environment. We stated that some of our members and subscribers are generating income by selling puts and calls.

Investors can (likely) earn $600 per $11,400 safely this week. (About $60,000 per million)

Note that the  Monday Morning Program recommends passive investing — watching grass grow, watching paint dry. Selling puts and calls is NOT passive investing. However, our members with a moderate risk tolerance level have been doing it, often safely and successfully.

When the market opens at 9:30 AM today, September 28, following what they do, anybody should be able to earn about $US600 for every $US11,400.00 invested. How? What is the worst that can happen?

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