Our Accelerated Income Strategy Profits Yet Again

One of the reasons I like the Accelerated Income strategy is that this contrarian approach to trading is incredibly versatile. In bull markets, the strategy essentially acts as an ATM machine spitting out lucrative profits each and every month. We simply reset our positions each month and collect our accelerated income payments like clockwork.

During bear markets, the strategy is also attractive. With a slight adjustment to our implementation, we are able to capitalize on market fear, getting paid MORE because the higher premium traders are willing to pay to insure their portfolios. This strategy thrives off the uncertainty that most investors feel during this period, and our positions typically either give us lucrative monthly income, or allow us to buy stock at a tremendous dividend.

And what about stale market periods when stocks are range-bound or going nowhere? Our Accelerated Income strategy works well in this environment too, allowing us to hold stable stocks while collecting income payments that give us returns far above and beyond those that a conventional dividend investor would receive.

The Accelerated Income strategy is lucrative during all of these market environments not because it is a magic or some secretive black box strategy but because the trading approach is versatile and can be adjusted to fit many different market environments. This is why I think the Accelerated Income approach is a MUST for all investment accounts.

Whether youre an aggressive trader or you have a conservative retirement account that you count on for long-term income, at least SOME of your capital should be invested in this flexible income-generating strategy.

What IS the Accelerated Income Strategy?

In a nutshell, our Accelerated Income strategy makes reliable income by offering other traders the ability to make speculative bets. These aggressive traders pay US for the right to take risks; meanwhile, we collect low-risk income payments.

In practice, our trades are very simple and involve two steps:

• First, we buy shares of stock. Simple as that. The stock positions are in companies that we expect to at least remain stable, or possibly trade higher.

• Second, we sell call option contracts. This is the point at which we give other traders the right to speculate. Also, by selling these call option contracts, we receive income.

Conventional investors are often misled into believing that option contracts are dangerous and scary. To be sure, in the hands of a reckless trader, options can be damaging. But this is true with stocks, bonds and even mutual funds!

Our strategy of selling calls actually gives us income (we are paid for selling these call contracts) and it carries LESS risk than if we simply bought the stock by itself. By selling these call contracts, we are obligated to sell our stock to the trader who bought the contracts from us at a future time (and set price). Essentially two things can happen:

• If the stock remains above this price point when the calls expire, we sell our stock and the trade is complete.

• If the stock is trading below this price point when the calls expire, we do NOT sell our stock but we still keep the income from selling the option contract.

Either way, we are winners. We either gain income from selling the calls and then sell our stock at an agreed upon price, or we gain income from selling the calls and continue to hold our stock. Either way, we have Accelerated the level of income we receive from this trade.

The Beauty of Guaranteed Income

The most beautiful thing about this contrarian income strategy is that we can make money even when our stocks go nowhere. Remember, we receive income from selling our call contracts and no one can take that income away from us it is guaranteed !

When call contracts expire, we still continue to hold our stock position. We can then turn around and sell another set of call contracts that expire at a later date. So with this strategy, we can set up a potentially perpetual stream of income trades and make money even if our stock trades sideways (or sometimes even if it trades lower).

Case in point: a couple of months back, we set up several precious metal miner positions in our Accelerated Income portfolio. At the time, the miners were moving steadily higher and we believed that rising gold and silver prices would help to continue the trend.

Over the past several weeks, however, gold and silver stocks have pulled back a bit. The action caused conventional investors to suffer material losses. But our Accelerated Income positions had the added benefit of income from the call contracts that we sold.

Now the first set of call contracts wound up expiring, and we were only able to profitably close out one of our precious metal miner positions. However, since we sold call contracts against these positions, our income offset some of the losses from the underlying stocks. Better yet, we were able to sell an additional series of call contracts to generate more income from these positions.

Today, precious metal miners have stabilized and are due for a rebound. Meanwhile, were in great shape with these positions because if the stocks rebound enough, we can sell them for a net profit. And if not, we can continue to generate more income by selling additional call contracts.

Guidance at Every Step

In my Accelerated Income trading service, we discuss these trades in detail and update our subscribers at every point along the way.

• Are the stocks trading higher? We discuss what this means for our profits, and how to maximize our level of income.

• Are the stocks trading lower? We use the Accelerated Income approach to manage risk and create offsetting income.

• Are the stocks flatlining or range-bound? We continue to sell new call contracts to generate reliable income each month.

The Accelerated Income strategy can be adjusted to take advantage of multiple market environments and situations. We just need to make some minor adjustments, depending on whether were focused on risk management, profit maximization or some combination of the two.

If youre not using the Accelerated Income strategy in your investment account, I can guarantee that you are leaving money on the table. In todays low-rate environment, it is extremely difficult to generate lucrative levels of income from your investment account. Fortunately, this strategy is one that actually gives you the ability to capture income even when interest rates are low.

Would you like more information about how to use this strategy in your account? The approach works equally well with traditional investment accounts, IRA accounts and even ROTH IRAs.

If you would like to test drive the Accelerated Income strategy, you can do so by clicking this link . Meanwhile, I would love to hear what you think about this strategy or about creating income in todays low interest rate environment. Just send me an email and let me know your thoughts.