Selling derivatives yesterday, our members earned a safe, 7% semi-annual return in their portfolios.
No one should ask for more.
They did so by writing just out-of-the-money covered calls on SPY, expiry date December 18, 2020.
(C 18DEC20 307.00). Similar returns will be available for a while with this approach.
It is often assumed that great rewards involve taking great risks. That is the case often but not always.
The market itself is main risk in taking this position. A large market decline will produce a loss in any covered call position but it will do so in all investments except money and near money (money markets and certificates of deposit.) That is a part of the reason that the Monday Morning Program recommends a carefully thought-out asset allocation.
A guaranteed, attractive ROI is often safely available using the approach described here.
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