How to Make $5,094 a Month Without Buying Stocks

Brett Owens, Chief Investment Strategist
Updated: July 20, 2017

Today I’m going to show you a proven way to collect $5,094 in cash, on average, every month—without buying a single stock, bond or fund.

In fact, you won’t have to buy anything at all. (I’ll show you precisely how this works in a moment.)

That amounts to a nice $61,000-a-year income stream, easily enough for you to live on pretty well anywhere in America. And if you pick one of the cheapest corners of the country (like Indianapolis, say, where the cost of living is 16% below the national average), it’s a fortune!

Beyond the Obvious

It’s certainly way better than trying to squeak by on the 1.9% your typical S&P 500 stock pays—and that payout slips a little more each day as stocks march higher.

Mr. Market’s (Not So) Incredible Shrinking Yield

At that yield, you’d need a nest egg of more than $3 MILLION to get our $5,094 in monthly income from the benchmark SPDR S&P 500 ETF (SPY)!

Luckily we won’t need anything close to that. You can easily generate the $5k we’re after on a $500,000 portfolio, and probably a lot less.

If you’ve been reading my articles, you know I’m a big dividend fan, and I have a soft spot for high-yield closed-end funds and real estate investment trusts (REITs), as well as under-the-radar dividend-growth stocks.

Today I’m going to throw my favorite strategy on the pile—the same one that will fetch us that gaudy $5,094 monthly cash income stream.

The New Go-To for Retirement Income

We’re going to write (or sell) put options.

Don’t let the word “options” throw you, because despite what the herd thinks, options are easy to trade (particularly if you’re selling them, rather than buying, as I’ll show you in a moment). They’re also a great tool for making your portfolio less risky and generating a solid income stream in retirement.

More and more folks are discovering this: according to numbers from the Options Clearing Corp., average daily option-trading volume jumped from just 2.9 million in 2000 to 16.6 million this year.

And if you think the people behind these deals are fly-by-night Wall Streeters or millennial whiz kids, think again. According to the Options Industry Council 2015 Study of Investors, 50% of option traders are retired, and nearly three-quarters are 55 and up:

When you can generate thousands in extra cash every month with minimal effort (the strategy I’m about to show you will take 10 minutes of your time every week), it’s easy to see why!

The “No-Buy” Route to an Extra $5k a Month

When I say we’re going to sell put options, what I mean is we’re going to give another investor the right to sell us a stock at a certain price—called the strike price—before a certain date.

Of course, we’re not going to give away that right. We’re going to sell it for cash!

Called a premium, we get this cash up front. This, by the way, is why I always sell options, rather than buying them. We’re literally getting paid to trade here!

What I just told you also puts paid to the idea that options are complicated—because that’s 90% of the strategy right there!

You’re probably wondering how these trades play out, so let’s move to the final step.

Your Hidden Edge

Let’s say the contract expires (my Options Income Alert service sells option contracts with expiry dates that typically expire 30 to 60 days out, which I see as the sweet spot), and the stock stays above the strike price. In that case, we keep the buyer’s cash, and we’re done.

This is an automatic winner for us, and it’s how things usually play out.

We can do a little something extra to add more insurance: only sell puts on stocks with sterling dividend growth. This is crucial, because who’s going to sell a stock—and put downward pressure on the price—when management is throwing out ever-fatter payouts like these?

Where Dividends Go, Stock Prices Follow

This is a chart for Texas Instruments (TXN), a stock I recommended selling puts on in April. The company’s dividend has jumped 525% in the last decade and is actually accelerating higher! You can clearly see how that’s pacing the stock upward.

If you’d made a 10-contract put sale on this trade when I recommended it, you would have collected a nice $2,280! And even if we ended up buying TXN (which we didn’t), that would have been fine, because we only sell puts on stocks we want to own.

That’s the beauty of this strategy.

Even if the above trade went “against” us, the income we collected initially would have made our effective cost on TXN lower than it would have been had we bought the shares outright! From there, we could have collected TXN’s “regular” dividends.

Plus there’s another conservative option strategy we could use to “magnify” TXN’s regular payout even more!

A Point-and-Shoot Cash Machine

The best part is that you can sit down on the day the contract expires and repeat these trades with a few clicks, collecting another instant cash payout when you do.

This is exactly how my Options Income Alert service is generating that $5,094 a month I mentioned earlier. If you simply “rolled over” the 32 trades (roughly one a week) OIA has issued since it launched last October, you’d have collected $45,850 (or $5,094 a month in cash) nine months later.

That kind of steady income is exactly why options have become so popular among the retired set—and why they should be on your radar, too.

Get your first instant CASH payout in just 48 hours…

If you’re like millions of Americans looking for more retirement income, to push your golden years “the last mile” to wealth and happiness, well …

Your timing is PERFECT.

Because this past Wednesday, I revealed my entire option strategy to a select group of investors in a live webinar, and a recording of the entire presentation is available now, but only for a limited time.

This is the exact same system I use to juice my own personal income stream.

Here’s what you’ll learn in this unique 90-minute online event:

  • How to use my proven income system to build a $5,000-a-month CASH income stream. That will put you on the road to $45,000 in the next 9 months—or $61,000 by next summer!
  • How to INSTANTLY boost the 2% to 3% dividend yield on a familiar stock like, say, Boeing (BA) to a 24%, 32% or even 51% payout.
  • You’ll also get 2 FREE options trades that will fatten your account by THOUSANDS as soon as you enter them … and it will only take you 10 minutes, tops!

Response to this special one-time event has been astounding. Simply CLICK HERE to watch the webinar right now, before it goes offline forever!