Michael Shulman, Expert Trader, Analyst and Educator

Michael Shulman, Expert Trader, Analyst and Educator

Sick of lousy stock dividends? You could be generating HUGE returns with one simple tactic.

If you’re about to click the button to order a stock and turn your mouse into a portfolio manager… STOP. There are other ways to generate profits from that stock.

For instance, you can sell a put.

I know several financial advisors and friends who never buy stocks at full price. Instead, they sell a put to get a discount on the market price of a stock.

Let me explain…

A stock, let’s say Citigroup (NYSE:C), is at $42. You think that’s the right price.

Instead of spending $42, sell the $42 put. You’ll collect roughly $0.90. That means if you are put the shares, you have a cost basis of $41.10.

You bought the shares at a 2.1% discount from the market price when you decided to buy the shares. Do this over and over again, and that $2 adds up.

And if the stock runs up, watch the put expire worthless and sell another one next Monday. And so on.The Weekly Put

So, what looks good right now using this tactic?

As a matter of fact, Citigroup (NYSE:C).

If you sell that put and get $0.70 instead of $0.90… if it expires worthless… if you do this 50 times a year (take two weeks off for good behavior)…

You net $35 on a $42 investment.

That’s an 83% annualized rate of return. Sure beats Citigroup’s $0.20 dividend. Nope, that’s not a typo; the stock yields 0.46%.

Think about it.

Beat the market—find out now how to protect your portfolio and get ahead, no matter the global market environment.

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