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My name is Karim Rahemtulla.
I’m the founder and editor of Strategic Income and The 400 Report.
I’m also editor of Xcelerated Profits Report, The White Cap Report’s mid-month newsletter, devoted to helping readers make money using the safest stock and option strategies to reap the greatest returns.
I’m a leading specialist in options trading. Over the past year, my options strategies have cashed in winners more than 83% of the time.
I currently sit on the Advisory Panel for The Oxford Club and am a frequent contributor to The Oxford Club Communiqué. I was educated in England, Canada, and the U.S. and am fluent in several languages.
I’ve been recommending investments and trading strategies to readers for over 20 years now. Anyone who knows me will tell you I’m probably the most conservative investor you’ll ever meet.
I avoid taking unnecessary risks with my money and stay clear of “get rich quick” schemes.
My success, and longevity, in this business is based on the belief that to be a winning investor you need the bulk of your wealth growing in investments that put every possible profit and safety edge at your disposal.
That’s why when I speak at investing events around the world – most recently a major conference in Vancouver, BC – my colleagues, and even some of the audience members, call me “Mr. Conservative.” I travel the world regularly to find the best investment opportunities for our members.
Finding the most sophisticated strategies for helping you build your wealth is what I do… as I show you how to get in on the latest breakthroughs and greatest groundbreaking opportunities long before the average investor finds out about it.
Successful investing doesn’t come from how much money you start with. It comes from who you know. With the right contacts, the right network and the right “information,” you too can become wealthy in the markets.
In fact, my research service – Strategic Income – has already shown a small circle of readers how to make a fortune through these difficult markets… with a 90% win rate so far this year.
And they’re pocketing thousands every month they want to, guaranteed!
Now you can learn how to do it too!
83% Win Rate in 2009
Strategic Income subscribers were able to book a 83% win rate in 2009… a huge gain for subscribers during a period of great market volatility.
Some of our winners in the last few months include:
- Conseco, Inc. (NYSE:CNO) – We made a solid 21% return in 4 months (over 63% annualized)
- China ETF (FXI-NYSE) – This trade gave us a nice 7.9% return in 3 months (over 30% annualized)
- Bristol Myers Squibb Co. (NYSE:BMY) – Our position was called away for gains of 8.3% in just 3 months (over 33% annualized)
- KBR, Inc. (NYSE: KBR) – We made 16.9% on the trade (including a 5 cent dividend) in just over 3 months (over 66% annualized)
Sure we’ve had a few positions take it on the chin, but at the same time, we’ve done much better than the market.
Fact is… for Strategic Income readers… the current market volatility has provided lots of opportunities. And there’s no reason why we can’t apply our deep-in-the money strategy to jump on some irrefutable long-term trends at very good prices.
Remember… out of crisis springs opportunity, and we will continue to recommend strategic investments in sectors that can benefit you in the near term and the longer-term.
What’s most important to keep in mind is that as volatile as this market seems right now, there’s enormous opportunity ahead.
So we’re adapting our deep-in-the-money strategy to capitalize on the opportunities this market is handing us – opportunities ideally suited for our strategy.
The volatility in the markets will continue, providing us good premiums as we sell calls. We’ve had good success using covered calls… And I’m confident we’ll continue to succeed – no matter what the market throws at us.
Covered calls can be a better – more profitable – way to make money from the biggest and best quality companies.
This technique is quite easy, too…
Remember how it used to be, back before you knew about this strategy? That’s when you actually had to own a stock by the “ex-dividend” date to receive the dividend.
For example, the ex-dividend date for Microsoft is August 18th. If you buy the stock before that date, you’ll receive the 2.68% dividend on September 10th.
But investors using the covered call strategy can enter the position right up to the dividend date – even ON the dividend date – and still collect their payment in less than 4 minutes.
We know what you’re going through. We’re going through it too… the uncertainty of the market, the stress of watching your portfolio fluctuate wildly on a daily basis.
But now’s not the time to give up. You should be looking at this as an enormous period of opportunity, possibly unlike any we’ll see again in our lifetime.
And know we’re adapting our strategy to take full advantage.
We continue to look for valuable opportunities that can replicate the type of profits we made when we closed out Conseco for a 21% gain, Silver Wheaton for a 17% gain, Goldcorp for a 25% gain and JP Morgan for a 15% gain…
It makes sense… Why wait months hoping for big stock gains, or waiting for dividend payouts, when you can pocket a thousand dollars – or more – in just minutes. Each month, without waiting.
Instant Income in Minutes
It’s a simple two-step process to make money with covered calls:
- First, you must buy the shares of the target company or you may be able to use one that you already own.
- You perform a simple covered call transaction that’s associated with the stock to claim your payout.
It involves other investors paying you cash for stocks you already own. Rather than waiting and hoping for capital appreciation from the stocks you already have in your portfolio, you can earn passive income on them.
With covered calls you get paid the moment you make your investment. Not the beginning of the month – not mid-month. But shortly after your place the transaction, the cash appears within minutes.
It’s a great way to mitigate risk, while also gathering extra income.
Writing covered calls involves selling call options against underlying “long” shares that you own in your portfolio.
The strategy is designed for investors who want to get more bang for their buck by boosting income through options in a relatively safe, conservative way.
If you’re new to the options world – one of the fastest growing areas of the market – you’ll need approval from a broker before you can start trading them. But this just involves filling out a simple form and then you’re good to go.
Covered calls are a great starting point in the world of options, since they’re at the simpler end of the options chain. And because the underlying shares and options are usually held at the same brokerage, the shares act as “collateral” for your options.
With a covered call transaction –
- You must first own at least 100 underlying shares of the company in question. That’s because one option contract comprises 100 shares.
- You sell call options against your long stock position. You see, when you buy shares of a company, you own those shares… period.
However, an options contract gives the owner the right to buy or sell a block of shares (100 per stock option contract) for a pre-determined price (strike price) over a pre-determined amount of time – be it days, weeks, or months (the expiration date).
So when you write a covered call, you’re giving up the right to own the shares to the person who bought that option. You basically promise to sell your shares to the buyer at your set price if he chooses to exercise his right (but not obligation) to buy them.
They’re known as “covered” calls because you already own the shares that you’re promising to sell – hence the collateral.
But here’s the thing: For that right, he must pay you money (a premium). The premium is a cash fee paid to the seller by the buyer on the day the option is sold. That’s how you generate income.
And it’s yours to keep!
Here’s an example…
Say you buy a share of stock for around $31. If it moves to $35 over the next few months, you make a $4-per-share profit (or 12%).
However, few investors know that you could sell a $35 (strike price) May call option into the market and get paid $3 per share (premium) for it, thus making the actual price you paid for your stock $28. Then if the stock moves to $35 by May of this year, your profit would be $7 (or 25%).
In this example, I’ve managed to double my returns through a clever use of covered call options. And, if the stock falls $3 in the coming months, anyone who paid full price for the stock would have lost just over 10%.
My loss? Zero. Because the net price I paid for the stock was $28. And for selling the call option, I make instant income (premium) off one option (100 shares) of $300.
So the bottom line is this: Not only can you gain passive income (premium) from your shares, but you can also decrease your cost basis using covered calls. Thus, this strategy can be an additional way to profit from stock ownership.
You won’t even need a new brokerage account or specialized knowledge. You can trade covered calls in a normal discount brokerage account in about ten minutes a week.
And what’s more, you’ll actually be reducing your portfolio risk if you incorporate covered calls into your mix.
Now, this isn’t for the investor looking for a get-rich-quick scheme.
Instead, covered calls are a way you can use a proven, safe investment strategy to build a rock-solid foundation for your economic future. It doesn’t matter whether the stock goes up or down… you can still earn instant income with covered calls.
How To Trade Covered Calls
If you have a full-service broker, here’s what you say:
“I want to enter a covered call trade. Buy me 1,000 shares of ABC at the current price of $XX. Against this position, sell 10 contracts (each contract represents 100 shares) of the JAM January $32 call options for $4.60.”
If you use an online broker, this is what you need to do:
- Enter the order to buy 1,000 shares of ABC at a $32 limit – good for the day. Make sure you’re filled by going to the ORDERS screen.
- Next, go the screen that says TRADE OPTIONS. Once you’re here, you’ll see different boxes.
Here’s what you need to do:
- Enter the option symbol.
- Enter the NUMBER of CONTRACTS. So with 1,000 shares, you enter 10.
- In the PRICE box, you need to enter the limit price you want to use.
- Next, you must enter the type of order in the ORDER TYPE box. The type of order is either a DAY ORDER, or a GOOD TIL CANCEL.
- Then you need to specify the TYPE OF TRADE. These choices include BUY TO OPEN, SELL TO OPEN, BUY TO CLOSE, and SELL TO CLOSE.
When you are initiating a covered call trade, you CHOOSE SELL TO OPEN. This means you’re opening a covered call trade by SELLING OPTIONS against your position. To reverse the trade or get out of it early, you would do the opposite. You would BUY TO CLOSE the options and SELL the stock.
Don’t worry… with each recommendation… we’ll give you complete step-by-step instructions on what you need to do.
Pocketing Thousands Every Month… Guaranteed!
With covered calls, you essentially have three different ways to make money:
- From the share price appreciation. The decay in time and risk premium in the options that were sold if the price of the shares stay the same or go higher.
- From the premium that you receive from the call option buyer, which in turn will lower your overall cost on the shares that you bought.
And because of this third point, covered calls act as a cushion against a potential downturn in the price of your stock. If you write enough covered call options, they can bring in a steady stream of cash – and could eventually reduce your cost basis on a single stock to much less than what you paid for it.
This means you can own shares in quality companies at your price.
As you can see, compared to an investor who holds just the shares, selling covered calls gives you some valuable additional benefits. Covered call writing if used with the right stock, it’s a great way to collect regular income from your stock holdings, and reduce your net cost.
What Our Subscribers are Saying…
Subscriber Laura Oakley writes…
“I began this service a little over two years ago. In that time I’ve made 20 trades. 10 are still open. So far I’ve been profitable on 19 of those trades, and the one that’s in the red is still open. It still has the potential to be profitable.
I generally place approximately $10,000 in each trade. My total profits to date are over $15,000. Annualized returns on each trade (excluding the one loser) range from 13 – 165%, with most in the 20 – 30% range. I have this information in a spreadsheet which I began keeping to see which, if any, of the various advisories I’ve subscribed to over the years are worth the fee.
This one is my favorite. Not only are the returns respectable, they’re reliable. I’m now using this exclusively in my IRA which is finally growing at a steady pace after years of struggle. I’m also not glued to my computer, watching every tick of every chart. I’ve tried services which require lots of babysitting to get the phenomenal returns they promise, but they also have so much risk that the losses quickly outstrip the gains.”
Subscriber Joe Bartlett writes…
“I have tried a number of “Options Trade” services. This one consistently gives me winners. I will still speculate on other options but the bulk of my investment dollars goes into the [Strategic Income] recommendations. Thanks for your good recommendations.”
Subscriber John Wrigley writes…
“Simply put: your research service is unique and for me, your service has provided me a new lesson on income strategies.”
Find out more about how to subscribe to Strategic Income here. If you’d rather activate your subscription by phone, please call our VIP Services team at 888-570-9830 or 410-454-0498 and offer Priority Code: WITRL101.
Good investing,
Karim Rahemtulla
Chief Specialist of Options/Emerging Markets
Strategic Income
P.S. With a win rate of 83% this year… our covered calls research service, Strategic Income, is giving a small group of savvy individuals opportunities to make a fortune – even during this historic market fluctuation. Using covered calls, you could pocket a thousand dollars a month – or more – in just minutes. It’s easy too… we walk you through every step – giving you detailed instructions on what to buy and when.