SlideShare a Scribd company logo
How To Make Consistent Monthly
Income Using Stock Dividends, Covered
       Calls and Blanket Puts



           Get Rich Investments
This year is looking more like 2008 and 2009 as market volatility continues to affect each of the market indices. There
is event after event that increases the uncertainty of future stock returns. This includes the collapse of the euro,
potential defaults of Greece and other countries, politics in the U.S., economic uncertainty as unemployment continues
to be a problem, etc. This creates a challenge to investors wanting to create a consistent monthly income. However,
there is a solution for investors outlined in this report.

As an investor in such a volatile market, the first objective is to ensure the safety of your capital. You must have your
capital returned to you to stay in the game. A big lost of say 50% will require a return of 100% to get even. Big loses
must be avoided as this report will show you how to accomplish return of your capital.

As an investor, you should focus on companies that produce returns regardless of what is challenging the economy.
Think of the blue chip stocks with strong brands such as Coca-Cola (KO), Johnson & Johnson (JNJ), Intel (INTC) and
others. These companies will hold up during times of high market volatility.

Get more income from each trade to increase your profits. This includes investing in strong companies that pay a
dividend and increases this dividend each year. This creates a consistent stream of dividend income regardless of
what happens in the market.

Invest in trades with a covered call on each stock position. When you sell a call you receive cash premiums that allows
the buyer to purchase your stock at the strike price of the call sold. Yes, you could have your stock called away if its
market price is above the strike price near expiration. However, the premium you get for selling the call is much larger
than a dividend and can be repeated each month for monthly income.

This report shows you how to combine these attributes to create consistent cash without losing your capital.



                                           Get Rich Investments                                                      2
How It Works
This strategy was created to produce monthly income with stock dividends and covered call premium. In addition, there
is a protective, blanket put, to ensure the volatility in the market does not affect your return of capital. This is how it
works:

1. Only use strong stocks as defensive plays. This report has 10 defensive stocks to use for stock dividends and
   monthly covered calls
2. Purchase stock in blocks of 100 shares. Then sell one call at-the-money (ATM) in the current month for every 100
   shares you purchased. This creates 2 income streams: (1) monthly income from the covered call, and (2) stock
   dividends from each stock. Use this defensive strategy with more than one stock to diversify your portfolio.
3. Buy a put to protect your capital. Look to purchase an at-the-money (ATM) put at least six months in the future.
   The put strike price will guarantee the price you can sell your stock at regardless how fall it’s price might move
   down.
4. To manage the trade, if the sold call expires worthless, then sell a new call in the next expiration month. If the call is
   exercised and your stock is called away, you can repurchase shares to sell new calls on. If you close the stock
   position and the bought put still has time left, you can sell the put for additional profits. If your stock price declines,
   you can sell more calls while keeping the put open or you can buy the call to close, sell the stock and sell the put.
5. The value of the Blanket Put will increase when the stock price declines. This is how the Blanket Put protects your
   capital. You can close the entire position at any time you desire as you do not need to wait until expiration.

The rationale for buying a put that is 6 or more months in the future is so you can sell monthly calls for income without
continuously adjusting or buying more puts. This will lower your commissions and protect the initial purchase price of
the stock while you collect monthly premium income and stock dividends.



                                            Get Rich Investments                                                       3
List of Defensive Stocks in this Report
    Intel (INTC)                       5
    Coca-Cola (KO)                     6
    Johnson & Johnson (JNJ)            7
    Microsoft (MFST)                   8
    Medtronic (MDT)                    9
    Abbott Labs (ABT)                  10
    Wal-Mart (WMT)                     11
    Proctor & Gamble (PG)              12
    McDonald’s (MCD)                   13
    Altria (MO)                        14

Get Rich Monthly Income Newsletter – $10.00 per month



              Get Rich Investments
Intel (INTC)
Stock trading at $21.83 with 3.9% Yield – 52 week stock performance = 18.2% - PE = 9.9


       Covered Call with Blanket Put
       Intel (INTC)


      Call Strike Price         22        22        22       22       22        22        22
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 21.83                                                                $ 21.83
      Dividends                        0.21                        0.21                        $ 0.42
      Write Call             0.84      0.75      0.75     0.75     0.75      0.75      0.75       5.34
      Buy Apr 2012 22
      Put                    2.55                                                                 2.55
      Net Debit         $ 23.54 $ 22.58 $ 21.83 $ 21.08 $ 20.12 $ 19.37 $ 18.62                $ 18.62

      ROI Trade         -6.5%      -2.6%      0.8%      4.4%      9.3%      13.6%     18.2%
      Risk              (2.54)     (1.58)    (0.83)    (0.08)     0.88       1.63      2.38

      ROI Orig Trade     3.6%       8.1%     10.7%     20.2%      26.1%     32.3%     38.9%




                                     Get Rich Investments                                                5
Coca-Cola (KO)
Stock trading at $67.5 with 2.8% Yield – 52 week stock performance = 20.3% - PE = 12.6


      Covered Call with Blanket Put
      Coca-Cola (KO)


      Call Strike Price         65        65        65       65       65        65        65
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 67.50                                                                $ 67.50
      Dividends                                  0.47                        0.47                 0.94
      Write Call             3.75      3.00      3.00     3.00     3.00      3.00      3.00      21.75
      Buy May 2012
      65 Put                 4.40                                                                 4.40
      Net Debit         $ 68.15 $ 65.15 $ 61.68 $ 58.68 $ 55.68 $ 52.21 $ 49.21                $ 49.21

      ROI Trade         -4.6%      -0.2%      5.4%     10.8%      16.7%     24.5%     32.1%
      Risk              (3.15)     (0.15)     3.32      6.32       9.32     12.79     15.79

      ROI Orig Trade     5.5%      10.4%     15.8%     21.7%      28.3%     35.9%     44.2%




                                     Get Rich Investments                                                6
Johnson & Johnson (JNJ)
Stock trading at $60.60 with 3.7% Yield – 52 week stock performance = 3.6% - PE = 14.8


      Covered Call with Blanket Put
      Johnson & Johnson (JNJ)


      Call Strike Price         60        60        60       60       60        60        60
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 61.60                                                                $ 61.60
      Dividends                        0.57                        0.57                           1.14
      Write Call             2.90      2.50      2.50     2.50     2.50      2.50      2.50      17.90
      Buy Apr 2012 60
      Put                    4.30                                                                 4.30
      Net Debit         $ 63.00 $ 59.93 $ 57.43 $ 54.93 $ 51.86 $ 49.36 $ 46.86                $ 46.86

      ROI Trade         -4.8%       0.1%      4.5%      9.2%      15.7%     21.6%     28.0%
      Risk              (3.00)      0.07      2.57      5.07       8.14     10.64     13.14

      ROI Orig Trade     4.6%       9.0%     13.8%     18.9%      24.9%     31.2%     38.2%




                                     Get Rich Investments                                                7
Microsoft (MSFT)
Stock trading at $25.00 with 2.5% Yield – 52 week stock performance = 4.5% - PE = 9.3


      Covered Call with Blanket Put
      Micosoft (MSFT)


      Call Strike Price         25        25        25       25       25        25        25
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 25.00                                                                $ 25.00
      Dividends                         0.16                        0.16                          0.32
      Write Call             1.04      0.80      0.80     0.80     0.80      0.80      0.80       5.84
      Buy Apr 2012 25
      Put                    2.65                                                                 2.65
      Net Debit         $ 26.61 $ 25.65 $ 24.85 $ 24.05 $ 23.09 $ 22.29 $ 21.49                $ 21.49

      ROI Trade         -6.1%      -2.5%      0.6%      4.0%      8.3%      12.2%     16.3%
      Risk              (1.61)     (0.65)     0.15      0.95      1.91       2.71      3.51

      ROI Orig Trade     3.9%       7.2%     10.6%     14.3%      18.4%     22.6%     27.2%




                                     Get Rich Investments                                                8
Medtronic (MDT)
Stock trading at $33.20 with 2.9% Yield – 52 week stock performance = 0.8% - PE = 11.5

      Covered Call with Blanket Put
      Medtronic (MDT)


      Call Strike Price         33        33        33       33       33        33        33
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 33.20                                                                $ 33.20
      Dividends              0.24                         0.24                         0.24       0.72
      Write Call             1.30      1.00      1.00     1.00     1.00      1.00      1.00       7.30
      Buy May 2012
      33 Put                 3.80                                                                 3.80
      Net Debit         $ 35.46 $ 34.46 $ 33.46 $ 32.22 $ 31.22 $ 30.22 $ 28.98                $ 28.98

      ROI Trade         -6.9%      -4.2%     -1.4%      2.4%      5.7%       9.2%     13.9%
      Risk              (2.46)     (1.46)    (0.46)     0.78      1.78       2.78      4.02

      ROI Orig Trade     3.7%       6.7%      9.9%     13.3%      17.0%     20.8%     25.2%




                                     Get Rich Investments                                                9
Abbott Labs (ABT)
Stock trading at $50.60 with 3.8% Yield – 52 week stock performance = 1.1% - PE = 15.5


      Covered Call with Blanket Put
      Abbott Labs (ABT)


      Call Strike Price         50        50        50       50       50        50        50
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 50.60                                                                $ 50.60
      Dividends                                           0.48                         0.48       0.96
      Write Call             1.80      1.50      1.50     1.50     1.50      1.50      1.50      10.80
      Buy May 2012
      50 Put                 4.50                                                                 4.50
      Net Debit         $ 53.30 $ 51.80 $ 50.30 $ 48.32 $ 46.82 $ 45.32 $ 43.34                $ 43.34

      ROI Trade         -6.2%      -3.5%     -0.6%      3.5%      6.8%      10.3%     15.4%
      Risk              (3.30)     (1.80)    (0.30)     1.68      3.18       4.68      6.66

      ROI Orig Trade     3.4%       6.4%      9.5%     13.0%      16.7%     20.5%     24.9%




                                     Get Rich Investments                                                10
Wal-Mart (WMT)
Stock trading at $50.70 with 2.9% Yield – 52 week stock performance = (4.1%) - PE = 10.7


          Covered Call with Blanket Put
          Wal-Mart (WMT)


         Call Strike Price         50        50        50       50       50        50
         Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call     Total
         Buy Stock         $ 50.70                                                      $ 50.70
         Dividends                         0.37                        0.37                0.74
         Write Call             1.70      1.50      1.50     1.50     1.50      1.50       9.20
         Buy Mar 2012
         50 Put                 3.20                                                       3.20
         Net Debit         $ 52.20 $ 50.33 $ 48.83 $ 47.33 $ 45.46 $ 43.96              $ 43.96

         ROI Trade         -4.2%      -0.7%      2.4%      5.6%      10.0%     13.7%
         Risk              (2.20)     (0.33)     1.17      2.67       4.54      6.04
         ROI Orig Trade     3.3%       6.4%      9.6%     13.1%      16.9%     20.9%




                                    Get Rich Investments                                          11
Proctor & Gamble (PG)
Stock trading at $60.50 with 3.4% Yield – 52 week stock performance = 2.3% - PE = 15.6

      Covered Call with Blanket Put
      Proctor & Gamble (PG)


      Call Strike Price         60        60        60       60       60        60        60
      Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call  Apr Call     Total
      Buy Stock         $ 60.50                                                                $ 60.50
      Dividends         $    0.53                          0.53                         0.53      1.59
      Write Call             1.90      1.50      1.50     1.50     1.50      1.50      1.50      10.90
      Buy Apr 2012 60
      Put                    4.30                                                                 4.30
      Net Debit         $ 62.37 $ 60.87 $ 59.37 $ 57.34 $ 55.84 $ 54.34 $ 52.31                $ 52.31

      ROI Trade         -3.8%      -1.4%      1.1%      4.6%      7.4%      10.4%     14.7%
      Risk              (2.37)     (0.87)     0.63      2.66      4.16       5.66      7.69

      ROI Orig Trade     3.0%       5.6%      8.3%     11.2%      14.1%     17.3%     20.8%




                                     Get Rich Investments                                                12
McDonald’s (MCD)
Stock trading at $67.50 with 2.8% Yield – 52 week stock performance = 18.3% - PE = 17.4


         Covered Call with Blanket Put
         McDonald's (MCD)


         Call Strike Price       87.5      87.5      87.5     87.5     87.5      87.5
         Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call     Total
         Buy Stock         $ 87.00                                                      $ 87.00
         Dividends                         0.61                        0.61                1.22
         Write Call             2.20      2.00      2.00     2.00     2.00      2.00      12.20
         Buy Mar 2012
         87.5 Put               6.70                                                       6.70
         Net Debit         $ 91.50 $ 88.89 $ 86.89 $ 84.89 $ 82.28 $ 80.28              $ 80.28

         ROI Trade         -4.4%      -1.6%      0.7%      3.1%       6.3%      9.0%
         Risk              (4.00)     (1.39)     0.61      2.61       5.22      7.22
         ROI Orig Trade     2.4%       5.8%      7.1%      9.7%      12.4%     15.2%




                                    Get Rich Investments                                          13
Altria (MO)
Stock trading at $25.75 with 6.4% Yield – 52 week stock performance = 15.1% - PE = 15.7

         Covered Call with Blanket Put
         Altria (MO)


         Call Strike Price         26        26        26       26       26        26
         Month Call         Oct Call  Nov Call  Dec Call Jan Call Feb Call  Mar Call     Total
         Buy Stock         $ 25.75                                                      $ 25.75
         Dividends                                  0.41                        0.41       0.82
         Write Call             0.65      0.50      0.50     0.50     0.50      0.50       3.15
         Buy Mar 2012
         26 Put                 2.35                                                       2.35
         Net Debit         $ 27.45 $ 26.95 $ 26.04 $ 25.54 $ 25.04 $ 24.13              $ 24.13

         ROI Trade         -5.3%      -3.5%      -0.2%     1.8%       3.8%      7.7%
         Risk              (1.45)     (0.95)     (0.04)    0.46       0.96      1.87
         ROI Orig Trade     2.4%       4.3%       6.3%     8.4%      10.6%     13.1%




                                    Get Rich Investments                                          14
Create Monthly Income with Your Portfolio
                               Get Rich Monthly Investment Plan
                                   for only $10.00 per month
The Get Rich Monthly Investment Plan provides the investor with the following investment vehicles:

1. A list of covered call trades consisting of high quality stocks such as the S&P 5-star research rating of the best
stocks that are recommended as strong buys. These lists are updated each week with select trades added daily.

2. A list of covered call trades using LEAPs (Long-Term AnticiPation Security) as a stock replacement strategy to
increase returns.

3. A list of CEFs (closed-end funds) that pay monthly dividends month after month. These investments can pay
more than 10% annually and can sometimes be purchased at a discount to net asset value.

4. A list of calendar spreads to use to increase your return while lowering your capital required to trade. Do you
want to pay full price for the stock or purchase a call as an alternative?

5. Low risk investments to minimize market risk and to prevent your portfolio from taking a big lost in such
uncertain market environments like we are experiencing today.


                                         Get Rich Investments                                                  15
Continued…

6. We have created a strategy called the Blanket Put that will protect your investment from market downturns.
The Blanket Put is your safety blanket to protect your portfolio from market downturns. This is worth the
membership fee by itself.

7. Access to multiple education resources to better learn how to be a more successful investor. Trades don’t end
when you make a stock buy, sell a call, or complete the trade. Here we want members to be educated about how
to manage a trade and when to take action.



     Try it today! Get   Rich Monthly Income Newsletter – $10.00 per month




                                       Get Rich Investments                                               16

More Related Content

What's hot

Keynote capitals india morning note march 1-'12
Keynote capitals india morning note march 1-'12Keynote capitals india morning note march 1-'12
Keynote capitals india morning note march 1-'12Keynote Capitals Ltd.
 
Daily Newsletter: 3rd February, 2011
Daily Newsletter: 3rd February, 2011Daily Newsletter: 3rd February, 2011
Daily Newsletter: 3rd February, 2011Fullerton Securities
 
financial management notes4
financial management notes4financial management notes4
financial management notes4
Babasab Patil
 
Corporate Governance Implementation - in Facing Global Financial Crises
Corporate Governance Implementation - in Facing Global Financial CrisesCorporate Governance Implementation - in Facing Global Financial Crises
Corporate Governance Implementation - in Facing Global Financial Crisesarwinrasyid
 
Take Action For Retirement
Take Action For RetirementTake Action For Retirement
Take Action For Retirementtommykok76
 
Daily Newsletter: 01st August, 2011
Daily Newsletter: 01st August, 2011Daily Newsletter: 01st August, 2011
Daily Newsletter: 01st August, 2011Fullerton Securities
 
Daily Newsletter: 18th January, 2011
Daily Newsletter: 18th January, 2011Daily Newsletter: 18th January, 2011
Daily Newsletter: 18th January, 2011
Fullerton Securities
 
2010.8.6 credit suisse china's hidden income
2010.8.6 credit suisse china's hidden income2010.8.6 credit suisse china's hidden income
2010.8.6 credit suisse china's hidden incomesinocismblog
 
Weekly Review 27.12.08
Weekly Review  27.12.08Weekly Review  27.12.08
Weekly Review 27.12.08
Kasi Viswanathan
 

What's hot (11)

Keynote capitals india morning note march 1-'12
Keynote capitals india morning note march 1-'12Keynote capitals india morning note march 1-'12
Keynote capitals india morning note march 1-'12
 
Daily Newsletter: 3rd February, 2011
Daily Newsletter: 3rd February, 2011Daily Newsletter: 3rd February, 2011
Daily Newsletter: 3rd February, 2011
 
Daily Newsletter: 24th May, 2011
Daily Newsletter: 24th May, 2011Daily Newsletter: 24th May, 2011
Daily Newsletter: 24th May, 2011
 
weekly market outlook 23.06.12
weekly market outlook 23.06.12weekly market outlook 23.06.12
weekly market outlook 23.06.12
 
financial management notes4
financial management notes4financial management notes4
financial management notes4
 
Corporate Governance Implementation - in Facing Global Financial Crises
Corporate Governance Implementation - in Facing Global Financial CrisesCorporate Governance Implementation - in Facing Global Financial Crises
Corporate Governance Implementation - in Facing Global Financial Crises
 
Take Action For Retirement
Take Action For RetirementTake Action For Retirement
Take Action For Retirement
 
Daily Newsletter: 01st August, 2011
Daily Newsletter: 01st August, 2011Daily Newsletter: 01st August, 2011
Daily Newsletter: 01st August, 2011
 
Daily Newsletter: 18th January, 2011
Daily Newsletter: 18th January, 2011Daily Newsletter: 18th January, 2011
Daily Newsletter: 18th January, 2011
 
2010.8.6 credit suisse china's hidden income
2010.8.6 credit suisse china's hidden income2010.8.6 credit suisse china's hidden income
2010.8.6 credit suisse china's hidden income
 
Weekly Review 27.12.08
Weekly Review  27.12.08Weekly Review  27.12.08
Weekly Review 27.12.08
 

Similar to Defensive stocks for monthly income

Dividend Weekly 47/2012 By http://long-term-investments.blogspot.com
Dividend Weekly 47/2012 By http://long-term-investments.blogspot.comDividend Weekly 47/2012 By http://long-term-investments.blogspot.com
Dividend Weekly 47/2012 By http://long-term-investments.blogspot.com
Dividend Yield
 
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.comDividend Weekly 49 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.com
Dividend Yield
 
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
Dividend Yield
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
Danish Alam
 
Dividend weekly 04 2013 By http://long-term-investments.blogspot.com
Dividend weekly 04 2013 By http://long-term-investments.blogspot.comDividend weekly 04 2013 By http://long-term-investments.blogspot.com
Dividend weekly 04 2013 By http://long-term-investments.blogspot.com
Dividend Yield
 
Dividend weekly 11 2013 By http://long-term-investments.blogspot.com
Dividend weekly 11 2013 By http://long-term-investments.blogspot.comDividend weekly 11 2013 By http://long-term-investments.blogspot.com
Dividend weekly 11 2013 By http://long-term-investments.blogspot.com
Dividend Yield
 
ACG_Cup_-_Valuation
ACG_Cup_-_ValuationACG_Cup_-_Valuation
ACG_Cup_-_ValuationIke Ekeh
 
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.comDividend Weekly 50 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.com
Dividend Yield
 
dollar general annual reports 2002
dollar general annual reports 2002dollar general annual reports 2002
dollar general annual reports 2002finance41
 
Optr 04052011
Optr 04052011Optr 04052011
Optr 04052011
James Hilbert
 
Dividend weekly 02 2013 By http://long-term-investments.blogspot.com
Dividend weekly 02 2013 By http://long-term-investments.blogspot.comDividend weekly 02 2013 By http://long-term-investments.blogspot.com
Dividend weekly 02 2013 By http://long-term-investments.blogspot.com
Dividend Yield
 
Dividend weekly 48 2012 By http://long-term-investments.blogspot.com
Dividend weekly 48 2012 By http://long-term-investments.blogspot.comDividend weekly 48 2012 By http://long-term-investments.blogspot.com
Dividend weekly 48 2012 By http://long-term-investments.blogspot.com
Dividend Yield
 
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)Chris Hemmelgarn
 
World Leaders Brochure
World Leaders BrochureWorld Leaders Brochure
World Leaders Brochure
juanroi5001
 
What Is A Financial Model
What Is A Financial ModelWhat Is A Financial Model
What Is A Financial Model
ttgoods
 
SFW - FOFA implications, Sum of parts valuation, possible acquirers
SFW - FOFA implications, Sum of parts valuation, possible acquirers SFW - FOFA implications, Sum of parts valuation, possible acquirers
SFW - FOFA implications, Sum of parts valuation, possible acquirers
George Gabriel
 

Similar to Defensive stocks for monthly income (20)

Samp2
Samp2 Samp2
Samp2
 
ACG Cup - Valuation
ACG Cup - ValuationACG Cup - Valuation
ACG Cup - Valuation
 
Dividend Weekly 47/2012 By http://long-term-investments.blogspot.com
Dividend Weekly 47/2012 By http://long-term-investments.blogspot.comDividend Weekly 47/2012 By http://long-term-investments.blogspot.com
Dividend Weekly 47/2012 By http://long-term-investments.blogspot.com
 
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.comDividend Weekly 49 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 49 2012 By http://long-term-investments.blogspot.com
 
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
Dividend Weekly 44/2012 By http://long-term-investments.blogspot.com/
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
 
Dividend weekly 04 2013 By http://long-term-investments.blogspot.com
Dividend weekly 04 2013 By http://long-term-investments.blogspot.comDividend weekly 04 2013 By http://long-term-investments.blogspot.com
Dividend weekly 04 2013 By http://long-term-investments.blogspot.com
 
Dividend weekly 11 2013 By http://long-term-investments.blogspot.com
Dividend weekly 11 2013 By http://long-term-investments.blogspot.comDividend weekly 11 2013 By http://long-term-investments.blogspot.com
Dividend weekly 11 2013 By http://long-term-investments.blogspot.com
 
ACG_Cup_-_Valuation
ACG_Cup_-_ValuationACG_Cup_-_Valuation
ACG_Cup_-_Valuation
 
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.comDividend Weekly 50 2012 By http://long-term-investments.blogspot.com
Dividend Weekly 50 2012 By http://long-term-investments.blogspot.com
 
020910 Econ Investing Part 2 50m
020910 Econ Investing Part 2 50m020910 Econ Investing Part 2 50m
020910 Econ Investing Part 2 50m
 
dollar general annual reports 2002
dollar general annual reports 2002dollar general annual reports 2002
dollar general annual reports 2002
 
Manufacturing
ManufacturingManufacturing
Manufacturing
 
Optr 04052011
Optr 04052011Optr 04052011
Optr 04052011
 
Dividend weekly 02 2013 By http://long-term-investments.blogspot.com
Dividend weekly 02 2013 By http://long-term-investments.blogspot.comDividend weekly 02 2013 By http://long-term-investments.blogspot.com
Dividend weekly 02 2013 By http://long-term-investments.blogspot.com
 
Dividend weekly 48 2012 By http://long-term-investments.blogspot.com
Dividend weekly 48 2012 By http://long-term-investments.blogspot.comDividend weekly 48 2012 By http://long-term-investments.blogspot.com
Dividend weekly 48 2012 By http://long-term-investments.blogspot.com
 
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)
Portfolio Recover Assoc (PRAA) Pitch (Oct 2011)
 
World Leaders Brochure
World Leaders BrochureWorld Leaders Brochure
World Leaders Brochure
 
What Is A Financial Model
What Is A Financial ModelWhat Is A Financial Model
What Is A Financial Model
 
SFW - FOFA implications, Sum of parts valuation, possible acquirers
SFW - FOFA implications, Sum of parts valuation, possible acquirers SFW - FOFA implications, Sum of parts valuation, possible acquirers
SFW - FOFA implications, Sum of parts valuation, possible acquirers
 

Recently uploaded

Brand Analysis for an artist named Struan
Brand Analysis for an artist named StruanBrand Analysis for an artist named Struan
Brand Analysis for an artist named Struan
sarahvanessa51503
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
bosssp10
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Lviv Startup Club
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
Kirill Klimov
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
Adam Smith
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
SOFTTECHHUB
 
BeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdfBeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdf
DerekIwanaka1
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
thesiliconleaders
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
JeremyPeirce1
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
Aggregage
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
Corey Perlman, Social Media Speaker and Consultant
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
Susan Laney
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
dylandmeas
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
balatucanapplelovely
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Holger Mueller
 
Auditing study material for b.com final year students
Auditing study material for b.com final year  studentsAuditing study material for b.com final year  students
Auditing study material for b.com final year students
narasimhamurthyh4
 
Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
SynapseIndia
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
ecamare2
 

Recently uploaded (20)

Brand Analysis for an artist named Struan
Brand Analysis for an artist named StruanBrand Analysis for an artist named Struan
Brand Analysis for an artist named Struan
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
Evgen Osmak: Methods of key project parameters estimation: from the shaman-in...
 
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
 
The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...The Influence of Marketing Strategy and Market Competition on Business Perfor...
The Influence of Marketing Strategy and Market Competition on Business Perfor...
 
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
 
BeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdfBeMetals Investor Presentation_June 1, 2024.pdf
BeMetals Investor Presentation_June 1, 2024.pdf
 
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfThe 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
 
Top mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptxTop mailing list providers in the USA.pptx
Top mailing list providers in the USA.pptx
 
Understanding User Needs and Satisfying Them
Understanding User Needs and Satisfying ThemUnderstanding User Needs and Satisfying Them
Understanding User Needs and Satisfying Them
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
Authentically Social Presented by Corey Perlman
Authentically Social Presented by Corey PerlmanAuthentically Social Presented by Corey Perlman
Authentically Social Presented by Corey Perlman
 
buy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accountsbuy old yahoo accounts buy yahoo accounts
buy old yahoo accounts buy yahoo accounts
 
Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...Discover the innovative and creative projects that highlight my journey throu...
Discover the innovative and creative projects that highlight my journey throu...
 
The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...The effects of customers service quality and online reviews on customer loyal...
The effects of customers service quality and online reviews on customer loyal...
 
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesEvent Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
 
Auditing study material for b.com final year students
Auditing study material for b.com final year  studentsAuditing study material for b.com final year  students
Auditing study material for b.com final year students
 
Premium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern BusinessesPremium MEAN Stack Development Solutions for Modern Businesses
Premium MEAN Stack Development Solutions for Modern Businesses
 
Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431Observation Lab PowerPoint Assignment for TEM 431
Observation Lab PowerPoint Assignment for TEM 431
 

Defensive stocks for monthly income

  • 1. How To Make Consistent Monthly Income Using Stock Dividends, Covered Calls and Blanket Puts Get Rich Investments
  • 2. This year is looking more like 2008 and 2009 as market volatility continues to affect each of the market indices. There is event after event that increases the uncertainty of future stock returns. This includes the collapse of the euro, potential defaults of Greece and other countries, politics in the U.S., economic uncertainty as unemployment continues to be a problem, etc. This creates a challenge to investors wanting to create a consistent monthly income. However, there is a solution for investors outlined in this report. As an investor in such a volatile market, the first objective is to ensure the safety of your capital. You must have your capital returned to you to stay in the game. A big lost of say 50% will require a return of 100% to get even. Big loses must be avoided as this report will show you how to accomplish return of your capital. As an investor, you should focus on companies that produce returns regardless of what is challenging the economy. Think of the blue chip stocks with strong brands such as Coca-Cola (KO), Johnson & Johnson (JNJ), Intel (INTC) and others. These companies will hold up during times of high market volatility. Get more income from each trade to increase your profits. This includes investing in strong companies that pay a dividend and increases this dividend each year. This creates a consistent stream of dividend income regardless of what happens in the market. Invest in trades with a covered call on each stock position. When you sell a call you receive cash premiums that allows the buyer to purchase your stock at the strike price of the call sold. Yes, you could have your stock called away if its market price is above the strike price near expiration. However, the premium you get for selling the call is much larger than a dividend and can be repeated each month for monthly income. This report shows you how to combine these attributes to create consistent cash without losing your capital. Get Rich Investments 2
  • 3. How It Works This strategy was created to produce monthly income with stock dividends and covered call premium. In addition, there is a protective, blanket put, to ensure the volatility in the market does not affect your return of capital. This is how it works: 1. Only use strong stocks as defensive plays. This report has 10 defensive stocks to use for stock dividends and monthly covered calls 2. Purchase stock in blocks of 100 shares. Then sell one call at-the-money (ATM) in the current month for every 100 shares you purchased. This creates 2 income streams: (1) monthly income from the covered call, and (2) stock dividends from each stock. Use this defensive strategy with more than one stock to diversify your portfolio. 3. Buy a put to protect your capital. Look to purchase an at-the-money (ATM) put at least six months in the future. The put strike price will guarantee the price you can sell your stock at regardless how fall it’s price might move down. 4. To manage the trade, if the sold call expires worthless, then sell a new call in the next expiration month. If the call is exercised and your stock is called away, you can repurchase shares to sell new calls on. If you close the stock position and the bought put still has time left, you can sell the put for additional profits. If your stock price declines, you can sell more calls while keeping the put open or you can buy the call to close, sell the stock and sell the put. 5. The value of the Blanket Put will increase when the stock price declines. This is how the Blanket Put protects your capital. You can close the entire position at any time you desire as you do not need to wait until expiration. The rationale for buying a put that is 6 or more months in the future is so you can sell monthly calls for income without continuously adjusting or buying more puts. This will lower your commissions and protect the initial purchase price of the stock while you collect monthly premium income and stock dividends. Get Rich Investments 3
  • 4. List of Defensive Stocks in this Report Intel (INTC) 5 Coca-Cola (KO) 6 Johnson & Johnson (JNJ) 7 Microsoft (MFST) 8 Medtronic (MDT) 9 Abbott Labs (ABT) 10 Wal-Mart (WMT) 11 Proctor & Gamble (PG) 12 McDonald’s (MCD) 13 Altria (MO) 14 Get Rich Monthly Income Newsletter – $10.00 per month Get Rich Investments
  • 5. Intel (INTC) Stock trading at $21.83 with 3.9% Yield – 52 week stock performance = 18.2% - PE = 9.9 Covered Call with Blanket Put Intel (INTC) Call Strike Price 22 22 22 22 22 22 22 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 21.83 $ 21.83 Dividends 0.21 0.21 $ 0.42 Write Call 0.84 0.75 0.75 0.75 0.75 0.75 0.75 5.34 Buy Apr 2012 22 Put 2.55 2.55 Net Debit $ 23.54 $ 22.58 $ 21.83 $ 21.08 $ 20.12 $ 19.37 $ 18.62 $ 18.62 ROI Trade -6.5% -2.6% 0.8% 4.4% 9.3% 13.6% 18.2% Risk (2.54) (1.58) (0.83) (0.08) 0.88 1.63 2.38 ROI Orig Trade 3.6% 8.1% 10.7% 20.2% 26.1% 32.3% 38.9% Get Rich Investments 5
  • 6. Coca-Cola (KO) Stock trading at $67.5 with 2.8% Yield – 52 week stock performance = 20.3% - PE = 12.6 Covered Call with Blanket Put Coca-Cola (KO) Call Strike Price 65 65 65 65 65 65 65 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 67.50 $ 67.50 Dividends 0.47 0.47 0.94 Write Call 3.75 3.00 3.00 3.00 3.00 3.00 3.00 21.75 Buy May 2012 65 Put 4.40 4.40 Net Debit $ 68.15 $ 65.15 $ 61.68 $ 58.68 $ 55.68 $ 52.21 $ 49.21 $ 49.21 ROI Trade -4.6% -0.2% 5.4% 10.8% 16.7% 24.5% 32.1% Risk (3.15) (0.15) 3.32 6.32 9.32 12.79 15.79 ROI Orig Trade 5.5% 10.4% 15.8% 21.7% 28.3% 35.9% 44.2% Get Rich Investments 6
  • 7. Johnson & Johnson (JNJ) Stock trading at $60.60 with 3.7% Yield – 52 week stock performance = 3.6% - PE = 14.8 Covered Call with Blanket Put Johnson & Johnson (JNJ) Call Strike Price 60 60 60 60 60 60 60 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 61.60 $ 61.60 Dividends 0.57 0.57 1.14 Write Call 2.90 2.50 2.50 2.50 2.50 2.50 2.50 17.90 Buy Apr 2012 60 Put 4.30 4.30 Net Debit $ 63.00 $ 59.93 $ 57.43 $ 54.93 $ 51.86 $ 49.36 $ 46.86 $ 46.86 ROI Trade -4.8% 0.1% 4.5% 9.2% 15.7% 21.6% 28.0% Risk (3.00) 0.07 2.57 5.07 8.14 10.64 13.14 ROI Orig Trade 4.6% 9.0% 13.8% 18.9% 24.9% 31.2% 38.2% Get Rich Investments 7
  • 8. Microsoft (MSFT) Stock trading at $25.00 with 2.5% Yield – 52 week stock performance = 4.5% - PE = 9.3 Covered Call with Blanket Put Micosoft (MSFT) Call Strike Price 25 25 25 25 25 25 25 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 25.00 $ 25.00 Dividends 0.16 0.16 0.32 Write Call 1.04 0.80 0.80 0.80 0.80 0.80 0.80 5.84 Buy Apr 2012 25 Put 2.65 2.65 Net Debit $ 26.61 $ 25.65 $ 24.85 $ 24.05 $ 23.09 $ 22.29 $ 21.49 $ 21.49 ROI Trade -6.1% -2.5% 0.6% 4.0% 8.3% 12.2% 16.3% Risk (1.61) (0.65) 0.15 0.95 1.91 2.71 3.51 ROI Orig Trade 3.9% 7.2% 10.6% 14.3% 18.4% 22.6% 27.2% Get Rich Investments 8
  • 9. Medtronic (MDT) Stock trading at $33.20 with 2.9% Yield – 52 week stock performance = 0.8% - PE = 11.5 Covered Call with Blanket Put Medtronic (MDT) Call Strike Price 33 33 33 33 33 33 33 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 33.20 $ 33.20 Dividends 0.24 0.24 0.24 0.72 Write Call 1.30 1.00 1.00 1.00 1.00 1.00 1.00 7.30 Buy May 2012 33 Put 3.80 3.80 Net Debit $ 35.46 $ 34.46 $ 33.46 $ 32.22 $ 31.22 $ 30.22 $ 28.98 $ 28.98 ROI Trade -6.9% -4.2% -1.4% 2.4% 5.7% 9.2% 13.9% Risk (2.46) (1.46) (0.46) 0.78 1.78 2.78 4.02 ROI Orig Trade 3.7% 6.7% 9.9% 13.3% 17.0% 20.8% 25.2% Get Rich Investments 9
  • 10. Abbott Labs (ABT) Stock trading at $50.60 with 3.8% Yield – 52 week stock performance = 1.1% - PE = 15.5 Covered Call with Blanket Put Abbott Labs (ABT) Call Strike Price 50 50 50 50 50 50 50 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 50.60 $ 50.60 Dividends 0.48 0.48 0.96 Write Call 1.80 1.50 1.50 1.50 1.50 1.50 1.50 10.80 Buy May 2012 50 Put 4.50 4.50 Net Debit $ 53.30 $ 51.80 $ 50.30 $ 48.32 $ 46.82 $ 45.32 $ 43.34 $ 43.34 ROI Trade -6.2% -3.5% -0.6% 3.5% 6.8% 10.3% 15.4% Risk (3.30) (1.80) (0.30) 1.68 3.18 4.68 6.66 ROI Orig Trade 3.4% 6.4% 9.5% 13.0% 16.7% 20.5% 24.9% Get Rich Investments 10
  • 11. Wal-Mart (WMT) Stock trading at $50.70 with 2.9% Yield – 52 week stock performance = (4.1%) - PE = 10.7 Covered Call with Blanket Put Wal-Mart (WMT) Call Strike Price 50 50 50 50 50 50 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Total Buy Stock $ 50.70 $ 50.70 Dividends 0.37 0.37 0.74 Write Call 1.70 1.50 1.50 1.50 1.50 1.50 9.20 Buy Mar 2012 50 Put 3.20 3.20 Net Debit $ 52.20 $ 50.33 $ 48.83 $ 47.33 $ 45.46 $ 43.96 $ 43.96 ROI Trade -4.2% -0.7% 2.4% 5.6% 10.0% 13.7% Risk (2.20) (0.33) 1.17 2.67 4.54 6.04 ROI Orig Trade 3.3% 6.4% 9.6% 13.1% 16.9% 20.9% Get Rich Investments 11
  • 12. Proctor & Gamble (PG) Stock trading at $60.50 with 3.4% Yield – 52 week stock performance = 2.3% - PE = 15.6 Covered Call with Blanket Put Proctor & Gamble (PG) Call Strike Price 60 60 60 60 60 60 60 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Apr Call Total Buy Stock $ 60.50 $ 60.50 Dividends $ 0.53 0.53 0.53 1.59 Write Call 1.90 1.50 1.50 1.50 1.50 1.50 1.50 10.90 Buy Apr 2012 60 Put 4.30 4.30 Net Debit $ 62.37 $ 60.87 $ 59.37 $ 57.34 $ 55.84 $ 54.34 $ 52.31 $ 52.31 ROI Trade -3.8% -1.4% 1.1% 4.6% 7.4% 10.4% 14.7% Risk (2.37) (0.87) 0.63 2.66 4.16 5.66 7.69 ROI Orig Trade 3.0% 5.6% 8.3% 11.2% 14.1% 17.3% 20.8% Get Rich Investments 12
  • 13. McDonald’s (MCD) Stock trading at $67.50 with 2.8% Yield – 52 week stock performance = 18.3% - PE = 17.4 Covered Call with Blanket Put McDonald's (MCD) Call Strike Price 87.5 87.5 87.5 87.5 87.5 87.5 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Total Buy Stock $ 87.00 $ 87.00 Dividends 0.61 0.61 1.22 Write Call 2.20 2.00 2.00 2.00 2.00 2.00 12.20 Buy Mar 2012 87.5 Put 6.70 6.70 Net Debit $ 91.50 $ 88.89 $ 86.89 $ 84.89 $ 82.28 $ 80.28 $ 80.28 ROI Trade -4.4% -1.6% 0.7% 3.1% 6.3% 9.0% Risk (4.00) (1.39) 0.61 2.61 5.22 7.22 ROI Orig Trade 2.4% 5.8% 7.1% 9.7% 12.4% 15.2% Get Rich Investments 13
  • 14. Altria (MO) Stock trading at $25.75 with 6.4% Yield – 52 week stock performance = 15.1% - PE = 15.7 Covered Call with Blanket Put Altria (MO) Call Strike Price 26 26 26 26 26 26 Month Call Oct Call Nov Call Dec Call Jan Call Feb Call Mar Call Total Buy Stock $ 25.75 $ 25.75 Dividends 0.41 0.41 0.82 Write Call 0.65 0.50 0.50 0.50 0.50 0.50 3.15 Buy Mar 2012 26 Put 2.35 2.35 Net Debit $ 27.45 $ 26.95 $ 26.04 $ 25.54 $ 25.04 $ 24.13 $ 24.13 ROI Trade -5.3% -3.5% -0.2% 1.8% 3.8% 7.7% Risk (1.45) (0.95) (0.04) 0.46 0.96 1.87 ROI Orig Trade 2.4% 4.3% 6.3% 8.4% 10.6% 13.1% Get Rich Investments 14
  • 15. Create Monthly Income with Your Portfolio Get Rich Monthly Investment Plan for only $10.00 per month The Get Rich Monthly Investment Plan provides the investor with the following investment vehicles: 1. A list of covered call trades consisting of high quality stocks such as the S&P 5-star research rating of the best stocks that are recommended as strong buys. These lists are updated each week with select trades added daily. 2. A list of covered call trades using LEAPs (Long-Term AnticiPation Security) as a stock replacement strategy to increase returns. 3. A list of CEFs (closed-end funds) that pay monthly dividends month after month. These investments can pay more than 10% annually and can sometimes be purchased at a discount to net asset value. 4. A list of calendar spreads to use to increase your return while lowering your capital required to trade. Do you want to pay full price for the stock or purchase a call as an alternative? 5. Low risk investments to minimize market risk and to prevent your portfolio from taking a big lost in such uncertain market environments like we are experiencing today. Get Rich Investments 15
  • 16. Continued… 6. We have created a strategy called the Blanket Put that will protect your investment from market downturns. The Blanket Put is your safety blanket to protect your portfolio from market downturns. This is worth the membership fee by itself. 7. Access to multiple education resources to better learn how to be a more successful investor. Trades don’t end when you make a stock buy, sell a call, or complete the trade. Here we want members to be educated about how to manage a trade and when to take action. Try it today! Get Rich Monthly Income Newsletter – $10.00 per month Get Rich Investments 16