Nationwide — When most people think of making money from the stock market, they think of buying shares of stock in a company and making money as the stock, hopefully, appreciates in value.
Eric Johnson, a computer engineer from Baltimore, MD, held this same perspective up until 5 years ago. You see, 5 years ago, Mr. Johnson was introduced to a stock market strategy that forever changed the way he looks at making money from the stock market.
One day, while intently working on a coding project, Eric decided to take a quick break and check email. Upon going through his email, he noticed one email in particular. It had the subject line: A Wall Street Secret. After reading through the email, Eric discovered that the email’s author was offering him an opportunity to learn how to make money from the stock market using a strategy that’s unfamiliar to many.
In this email, it was stated that this strategy was the safest and best way of making money from the stock market regardless if the market went up, down or moved sideways. In other words, if the market did absolutely nothing, it was still possible to make money. Moreover, according to the testimonials cited in this email, there were people who were making four and five figures a month using this very strategy. Incredible, Eric thought to himself.
However, after 5 years and more than a thousand trades under his belt using this strategy, that is, selling stock options, Eric has come to a very bold conclusion: Selling stock options, is by far, the best way to consistently make money from the stock market without ever buying a single share of stock.
“Most people,” says Eric, “when they hear me talk about selling stock options, will ask, ‘How can you sell something you don’t own?’” In order for a market to exist, it requires buyers and sellers. Because options are contracts, you can sell a stock option contract without ever owning the stock. It’s just that simple. Nothing complicated about it.
Eric has become so passionate about options and how they can be used to generate income relatively safely from the stock market that he decided to create a company called Cubicle Investing. (Recall, Eric learned this strategy while working in a cubicle, hence, the name of his company.)
Cubicle Investing LLC is an online educational company that teaches individuals the best way to make money from the stock market: Selling stock options.
Eric believes that passively investing in the stock market is detrimental to your return on capital (ROC). Why? “Well, for one,” he says, “you are exposing your capital to a dynamic market that can be very volatile. Look at what happened in December of 2018” – here is one headline: “Stocks on track for worst December since the Great Depression”.
In spite of the market downturn in December, Eric was able to realize a 31.2% ROC. How? Selling stock options!
Next, he says, “You miss out on opportunities that present themselves on a daily or monthly basis because you are passive and not actively investing and, more importantly, learning.”
“Passive investing only works when the market goes up. But, what about when the market falls and falls hard? Your capital contracts significantly because you are passive and not active. As an active options trader,” says Eric. “I make money whichever way the market turns, even if it does nothing.”
He says, “Being an active investor, I’m able to compound returns at a very high frequency, whereas a buy and hold or passive investor (e.g. mutual/index funds) rarely or never experiences compounding effects in their portfolio to the same degree as an active trader does.”
“In a given month, I can redeploy the same capital multiple times, each with a defined risk strategy and ROC of my choosing.”
In other words, it’s time to get active and take control of YOUR MONEY and learn the financial market. Options trading is a skill, that once learned, you can use for the rest of your life to make money in any market condition.