How Options are SAFER than Stocks …

Monthly Income + Downside Protection: Why the pros love investing this way …

In reality, they are a safer way to invest in your favoured stocks or ETFs.  And they provide an income stream.

In fact, Options were invented to reduce risk.  Which is why the Pros (including during my time at JPMorgan) love them.

You get downside protection + reliable income: a combination most investors don’t realize is possible.

Btw: For more insights like this – straight to your inbox – leave your details in the box at top of this page ☝🏼

How?

Imagine buying your favoured stock (or ETF or Fund) in the usual way …

• If it rises 5%, you gain 5%
• If it falls 5%, your value declines by 5%

With Options you can protect this decline by selecting a ‘Strike Price’ at your desired level, eg 5% lower.

This gives downside protection and safety margin.

Safer Entry into Emerging Markets …

Let’s illustrate this with a real example: an ETF that tracks Emerging Markets (EM).

You can see below it has performed well.  If we wanted to own this anyway, how could we do so whilst protecting against a 5% decline after purchase?

The answer is via Options ….

Downside Protection with Options …

With Options you have a safety margin.  This is how it works …

The Emerging Markets ETF has a current price of 49.91.  To create a safety margin of 5% you’d choose an Option with a ‘Strike Price’ of 47.50 (approx 5% below today’s level).

That means you get to purchase it at 47.50 (instead of 49.91) if it dropped to that level.  And if it doesn’t drop to that level, you don’t buy it.

BUT … you’ll get paid monthly income either way, for taking on the obligation to buy.

Typical income levels are 1-3% per month – depending on the stock/ETF and the strike price you select.

 WATCH me explain this fully on my latest YT video

 LISTEN to this on my latest podcast

Income or Asset Accumulation: You choose …

Many of my mentees do exactly the above to accumulate blue-chip stocks and ETFs in their portfolio – at a discount.

And many of them do it purely to create a monthly income stream without needing to purchase the stock or ETF.

Either way, my mentees learn a powerful easy-to-follow process for either objective.

Any Risks ?

You might be wondering where’s the catch.  There are two ‘risks’ Vs buying in the usual way:

Risk 1:  In our example we agreed to purchase the ETF at our strike price of 47.50 (in order to receive the income).

But if it declines further, we start incurring a loss below 47.50 – our safety margin is limited to the Strike Price.   Which is safer than the usual way which has no safety margin.

[We can choose a lower strike price which would earn lower income.  Or select a higher strike price that earns higher income].

As we do Options on stocks we’d be happy to own anyway, the absolute worst scenario is having to buy our favoured stocks at a price of our choosing (lower than today’s price) – and we get paid an income for agreeing to this.

Risk 2:  We only get to buy this ETF IF it drops to our strike price (47.50).  If instead, it rises significantly, we lose out on the upside.

Remember, either way:  we’ll get paid the monthly income anyway, regardless of either scenario.

My Personal Options Strategy (and what I teach) …

Options are only risky when used for speculation or excessive leverage.

That’s not what I do, nor teach.  My approach uses:

• Built-in safety margins
• Probabilities tilted in your favour
• Predictable income of 1–3% per month

Our approach isn’t gambling – it’s a disciplined, easy-to-follow strategy that makes investing safer, more predictable, and more rewarding.

A Proven Framework ..

You get the full proven framework inside the Investment Academy.   

Not just Options.  Also includes Platforms, Funds, ETFs, Stocks, REITs and high dividend stocks. 

And you can start NOW – before the live classes start on September 9th.

Starting now helps you create your investment action-plan before classes begin.

You’ll secure a place on the transformational live programme with powerful results to grow your wealth and create income along the way.

See how recent attendees found it.

And learn how one attendee now earns £7,000 p/month in income with Options

Secure your place now for immediate access – and transform your financial future.

Always Remember:

• Time in the Markets always beats timing the markets
• Stay Diversified 
• Minimise those leakages:  Fees, Inflation, and Taxes
• Financial Markets are a great source of recurring income  
• ETFs, Balanced Funds and Options achieve all the above
• Being educated helps you outperform 99% of the population

… to ensure your investments work for YOUR financial freedom (not someone else’s)     

And … 

For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.   

Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth.  And Options to create recurring income.

Click here to learn about our Investment Academy

Finally …

– Don’t take the above as advice as it may not apply to you personally

– Your Capital is at Risk

– You may not be covered by the FSCS

– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now