3 Options Trades You'll Get Paid to Make
Bryan Perry, August 12, 2009
Free Trading Guides
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Before you make a single high-yield investment, you must read this.
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STRIDES
A third way of generating some income is to buy convertible securities known as Stock Return Income Debt Securities, or STRIDES, that are tied to the performance of the underlying stock by using puts and calls to manufacture the derivative income stream.
These hybrid securities are structured like bonds that mature in a fairly short time frame (one to two years), which allows you to get fairly quick profits while still enjoying long-term taxation. Even better, each pays a dividend yield. I like these kinds of products because they pay 9%-12% in a world where one-year CDs are near record lows.
The downside here is that these types of positions are often less liquid than traditional options because, in most cases, you must go through a broker to get them.
Learn the ins and outs of STRIDES.
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