“Explosive growth with minimum risk!” Does that sound too good to be true?
Before I watched a video on how Ryan Jones of PayDayStocks.com uses covered calls in his trading, I thought it was.
Covered calls are typically portrayed as a conservative strategy. A way for investors to generate additional income based on stocks they have in their portfolio without taking on significant risks.
That’s the basic component of PDS’s strategy. You’re making money on shares you think might take a hit, all while keeping your risk very low. There are drawbacks, of course. If the stock tanks, you’re still going to lose money, as the contract you’ve sold won’t counteract a massive drop in share value. Conversely, if your bet was wrong and the stock skyrockets, your profit is limited only to the price you sold the contract for.
But if this was a basic strategy, you wouldn’t be hearing about it from us. The real intrigue of this strategy is the value of compounding your returns.
Ryan believes that through his unique compounding technique, an average profit of $50 a week on a $5,000 account could grow as high as $195,000 in just five years.
We thought it sounded crazy at first too until Ryan shared the math behind the compounding.
WATCH THIS VIDEO: HOW TO EXPERIENCE EXPLOSIVE GROWTH WITH WEEKLY COVERED CALLS
Interested in learning more about this powerful technique? Check out the full video here.