The Bull Hunters Guide

I wasn’t going to post another article in the Bullhunter Blog until I got back home from Hong Kong. However, I put a post in the Planet Wealth Blog about my trading with Collars when Renting Shares. In here, I can easily call it Writing Covered Calls with a Collar.

I have done quite well from this very strategy myself, so here’s a quick mention of it here in the Bullhunter Blog. Many of my readers have enquired about my trading so it is relevant enough to mention here.

Covered Call With A Collar

With the market being so volatile at the moment and especially dropping very fast on occasions, I decided to slightly change my trading strategy. Basically what I do is this:

1. I buy shares
2. I write covered calls on those shares (renting shares) and receive a monthly premium for that.
3. At the same time I buy a Put (insurance) at around 80 - 90% of the share value depending on the cost at the time.
4. I personally like to buy a Call option slightly out of the money, approximately 10 - 20% above the price I’m renting them at (the covered calls).
5. If the share price drops, I buy back the covered call at a discount (I make a profit) and cash in the Put option (the insurance) at a premium (another profit).
6. If the share price goes up, I cash in the bought Call option ( a profit) and if I get exercized on the Covered Call (renting shares), I actually make a profit because I rented them at more than I bought them for.

Before you get put off by the above steps, there is a much easier (and simpler) way to do this. I have covered that further on.

Keep in mind, I have complicated the process a bit here. I have a reasonable understanding of trading on the stock market. There are a few more things I do to increase my profitability, such as doubling up the Put options and working them in favour when the market drops. I also borrow 100% of the share price from the bank, hence I am using no money of my own and profit nicely from it.

Simplify It All For Me Please!

I learned these strategies from Andrew Dimitri at Planet Wealth. If you’d like to attend one of his FREE Webinar Sessions where he explains this startegy ( the much easier version of what I wrote above ), then you can go online and book your spot at Andrew’s Webinar Here For FREE.

FREE Intro Session To Covered Calls With Collars

Andrew Dimitri has offered to put these sessions on the teach you How To Trade Covered Calls With Collars - and it is Free. He shows the simple way of doing it and it can be seen online - at home on your own PC.

I learned strategies like this one from Andrew back in 2004. I’m really grateful I made the effort to do this. Now, this is much easier to learn as he does it for you online. If you would like to check it out, go and book your spot at the next available session:

Book your FREE spot at the webinar here >>

There is only room for 50 people at each session. First in - best dressed.

Last month alone, Planet Wealth made a 12.9% profit on a $70,000 investment bank. In that month the ASX dropped by 11.4% - and they made a profit using this strategy! I use that same strategy and I know it works.

Enjoy the webinar. It is good value.

I’ll see you back here next week for the next installment of the Bullhunters Guide.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2008

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