How to Collect “Extra Income” from Apple

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Each month, I reveal a way to collect extra income from one of the world's most divisive stocks: Apple (Nasdaq: AAPL). Most people either love or hate this company - and likewise, they either own it, or they don't.

But I've found a way to make money from Apple - regardless of whether you own shares or not, whether you "like" the company or hate it.

I've revealed my Apple trades, for free, in my monthly webinars for the past 10 months. And so far, 9 out of these 10 trades were profitable. I've hosted these free webinars to share the same strategy I use in a real-money portfolio.

I won't get into too much detail here, but I basically have found a simple way to ensure my investments are profitable 80%+ of the time. L et's take a closer look at Apple.

I can buy or sell the stock short right now, but my probability of success would be only 50%. That's because the stock is going to go either up or down. Including my transaction costs, my probability of success is actually lower than 50%.  Plus, at more than $500 per share, I'd have to fork over a lot of capital to make the investment.

However, through the use of a relatively simple options strategy, I can increase my odds to 80-20, and I can do so without risking as much capital.

How is it possible to have an 80% probability of success?

Basically, I am selling options to speculators. These traders are most likely novices who are speculating that Apple will continue to rise or fall.

You may have heard it before, but it's worth repeating: most option contracts expire worthless. In other words, most of the time when someone buys either a put or a call, they lose money. My goal is to simply pocket the profits by selling these gamblers their lottery tickets. And 80% of the time, I make money.

With Apple alone, I've made money 90% of the time. Even if you missed out on these past wins, I have good news for you: I'm about to release my next trade. And I'm prepared to share all the details with you in my upcoming free webinar.

So why aren't more and more investors using this strategy? I'll never understand…but frankly, it's to my benefit that few investors participate. That gives me an even bigger edge.

My strategy simply makes mathematical sense. I get to choose my own odds based on the risk and return that fits best in my portfolio.

This is what I do in the Options Advantage service and it is what I have been doing throughout my entire career as an options trader.

Knowing that each and every stock investment only has a 50% chance of success, it just doesn't make sense that people keep perpetuating the guessing game that goes on daily in the investment world. My advice is to stop guessing and start using probabilities to make your decisions.

If you're interested, I invite you to join me (for free) at my next webinar event. During this live event, I'll be giving you all the details of high-probability trade for taking advantage of Apple's recent price action.

 It all starts this Thursday at 12pm ET. Click here to reserve your seat at this exclusive, live webinar. You won't want to miss out on all the details in tomorrow's investing seminar event



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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