The very popular Capital 19 Weekly Income Strategy is highly regarded by investors seeking regular weekly income because it works! In fact, a considerable amount of independent research has revealed that a strategy of selling options, whether a sold put or a covered call, not only outperforms the index in the long term but does so with less risk.¹
It’s also widely recognised that most option contracts expire worthless, meaning that, at expiration, the seller of those options retains the premiums as a profit. The Chicago Mercantile Exchange (CME) published a study which examined all options from 1997 to 1999 finding that 93.9% of all S&P500 put options left to expiry, had expired worthless.² The Capital 19 Weekly Income Strategy takes full advantage of this fact.
Every week our experts analyse put options available over the S&P500. Based on their findings they’ll choose which put options to sell at a strike price they expect the market to exceed. Essentially, they do the hard work for you and then you get to choose whether or not to invest.
You’ll receive an email from us whenever we place a new trade, and if you’d like to take the trade you simply reply ‘YES’ and with how many contracts you’d like. We’ll then place the order for you. Each time you sell a put option, income goes into your account. When the market finishes above this strike price, the trade makes a profit.
It’s that easy.
It’s up to you whether or not you take the recommended trade. You’re always in control of your account, money and investment journey. You can increase your capital investment, withdraw funds or opt out of the strategy at any time.
Making a trade couldn’t be easier. Just reply to our weekly email or text message, or call your Capital 19 adviser.
The Weekly Income Strategy is easy to use but if you have any questions, your dedicated account adviser is just a phone call away.
We’re experts in trading global stocks and options with a focus on the U.S., the largest and most liquid equity market in the world. Since 2007 Capital 19 clients have enjoyed global investment opportunities, trading stocks and options, so why limit yourself by only trading in Australian securities? Join the global investing community today and make more from your capital.
We consider this to be a high-risk strategy. You’ll experience losses if the index finishes below the strike level of the sold put option and a significant fall may result in 100% loss of funds committed to the trade.
The use of leverage can enhance investment performance but introduces the risk of losing a larger proportion of your capital or equity. Use of leverage may result in higher volatility in net asset values.
We trade on a US exchange, so all profits and losses are in USD. Your actual profits and losses will change according to the current exchange rate when you choose to convert your balance into AUD. There is no FX risk on the capital you’re using to trade as you’re not required to change your AUD into USD to make the transaction.
Selling put options requires you to have sufficient funds in your account to cover the margin of your position. If your account balance drops below the required maintenance margin, you’ll experience a margin call -automatic liquidation of some or all of your positions.
¹ Source: ASX “An Encyclopaedia of Buy Write Returns”
² Source: CME “Exercised/Expired Recap for Expired Contract Report”