Covered Call Options

An Investment U White Paper Report
By Karim Rahemtulla

What if you could routinely own a $12 stock for $9, a $27 stock for $22, or a $47 stock for just $36? Think of the advantage you would have. You’d already have profits in your hands. And if the stock price fell, you’d have a substantial “cushion” before the loss affected you.

Or what if you could make 4%, 5%, 6% or more from your fixed-income investments like CDs, bonds or preferred stocks? Or how about making six times more interest on your cash accounts than what your bank is currently paying? With FDIC insurance as well? It is possible, even with interest rates at all-time lows. You just have to know where to look.

So what’s the secret? It’s called covered call options. The investments at its core work in any market, at any time. But first here is some background on why this works so well.

Tapping into a Global Network for Safe-Cash Returns

It all begins with the right connections and access to the best information. Our network of brokers, advisers and our own research staff scour the world for opportunities to make more money for you. For fixed-income, we look to every bank in the world that is registered to do business in the U.S. –AND that has that critical FDIC stamp of approval. This FDIC insurance guarantees up to $100,000 of your money at a financial institution.

That’s just for CDs and money market accounts. For higher returns we look to investments like preferred stocks and notes.

Imagine getting almost 6% a year from an AAA-rate preferred note.

And bonds are worth looking at as well. Not the U.S. Treasury bills paying you less than 1%, but high-grade, short-term corporate bonds that pay you four to six times that number. They are out there now.

The objective is to make between 12% and 20% a year, far exceeding the rates of return you would get in a money market account or a savings account. Of course, there is more risk, but not nearly as much as you may think – and considerably less than investing in stocks alone.

By the time you’ve read this report, you’ll not only have a better understanding of how to supercharge your cash-like investments using instruments like corporate bonds, high-yield CDs and preferred stocks; you’ll also know more about a covered call options technique that can exponentially increase your portfolio’s earning power.

Covered Call Options: Insulation from Market Meltdowns

Let’s face it. The last few years have been brutal ones for investors. While 2009 saw some great gains, the global situation – especially in Europe – has sent markets around the world into numerous flights of panic in 2010.

Flat out, many investors are scared of stocks these days. Even when the market heads higher, they’re still scared. With good reason. They’re wondering where to turn to make decent returns, with complete safety.

Well, the good news is that there is an easy way you can lock in safe, steady income from a variety of conservative investments. It’s in covered call options.

Before we get into an explanation of how covered call options work, please think for a moment what it could mean to you if you knew of a way to invest $50,000 in a relatively safe income investment earning 16% per year or 24% per year.

At 16%, you would double your money in roughly five years. And at 24% per year your $50,000 would have grown to a mini-fortune of $118,210 in just four years.

And that’s using a covered call investment method that’s so safe, it’s been approved by the IRS for use with IRAs and pension funds.

But let’s say you want even more safety.

$12,000 in Income, Instead of $36,200 in Losses

Three years ago, just before the Dow slid and the Nasdaq fell off a cliff, you could have invested $50,000 in top-quality preferred issued-shares yielding 6% 7% or even 8% per year. Over the last three years, that investment would have put $9,000, $10,000 or as much as $12,000 in risk-free income in your pockets. (The same investment in Nasdaq shares would have dropped in value – all the way down to about $13,800.)

This is not some kind of get-rich-quick scheme. It’s not some system you can use to earn 50% or more on your investments every year. Instead, it is a way anybody – including you – can use proven, safe investments to build a rock-solid foundation for your economic future.

This System Is as Close to Foolproof as Possible

Covered call options are simple, really. You see, we’re not looking for huge profits found in what I call “needle in a haystack” stocks.

Instead, we look for…

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