Bryan Perry

Get Paid to Trade Options

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MILLION-DOLLAR METHODOLOGIES

Making a million bucks with stock trading has gotten increasingly difficult during the past year, but options traders are finding it easier than ever to practically print money for themselves, thanks to the influx of new options and innovative strategies.

You might not automatically consider options when it comes to building your retirement wealth or for generating income, but think again. Options are one of the fastest-growing investing strategies -- and with good reason.

There are multitudes of ways to profit from options but some are more attractive to income investors than others, namely covered call writing, put selling and newer hybrid options securities like Stock Return Income Debt Securities (STRIDES).

DON'T KNOW WHERE TO START? YOU'RE 'COVERED'

There's an options income strategy for every level of investor, and one of the easiest to implement and understand is covered call writing. Simply put, covered call writing means selling calls against stocks that you already own.

Covered call writing is a bet that a stock you already own will continue moving up or will trade sideways for a bit. (That's when it's trading within a range and not making any significant jumps or drops.)

The calls you sell (also known as "writing") are considered "covered" because you already own the underlying stock. This means if you are "called" to produce the stock, you are covered because you already have the shares.

If you'd like to learn more about the specifics of covered call writing, click here to read an in-depth article by Randy Frederick on this topic.

However, if you are new to investing or simply don't hold many stocks long in your portfolio, you can benefit from the action that covered call writing can bring by buying into an Exchange-Traded Fund (ETF) like the S&P Covered Call Fund (BEP).

The best part is that you don't have to do any of the call writing yourself, but you can profit from the legwork being done for you!