How to ‘Steal’ From Wall Street Legally
I want to share a little-known strategy with you today that’s almost like you’re stealing from Wall Street’s profits.
To explain it, allow me to use a casino analogy. Every day, people walk through the casino’s doors seeking that one big payout. Sure, a few hit the jackpot, but most are lucky to simply break even or only lose a little, while others lose their shirts.
Regardless, the house always wins.
That’s exactly how the derivatives market works on Wall Street. It’s like a financial casino where risk-loving speculators come to place bets. And it’s for this very reason that it’s one of Wall Street’s main sources of income.
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You see, Wall Street acts as the casino operator in the derivatives market, collecting the money being lost on these bets.
What most ordinary investors don’t realize is there are strategies that let you take on the role of the casino operator. In other words, they allow you to collect the money being lost instead of Wall Street.
A few private investors have already caught on to this secret. In fact, my Income Trader subscribers and I use it to generate extra income each and every week.
We do it by selling put options.
Don’t worry that this is an options strategy. It’s probably unlike any options technique you may have tried in the past.
What gives options such a bad reputation are the impulsive speculators who lose money on them most of the time. It’s actually that money Wall Street consistently collects with this options technique.
In the options world, for every winner there is a loser. It’s a “zero-sum game,” in other words. And according to a study by the Chicago Mercantile Exchange (CME), 94% of put options bought end up losing their buyers money.
So Wall Street, acting as the casino operator in this market, makes money the vast majority of the time. And that is also the role my Income Trader subscribers and I choose to play, essentially stepping in and “stealing” profits from the house.
You might be asking yourself, “Who would take the other side of this bet?” After all, someone is paying money upfront for options that expire worthless the majority of the time.
The answer is simple: A lot of investors make poor financial bets.
But what about the other 6% of the time? Don’t we lose a lot of money in those instances?
Most of the time, the answer is, “No.” That’s the beauty of this technique. It’s the closest thing to a win-win situation the market offers.
Let’s say we sell a put option on a blue-chip company. With this strategy, we’re betting shares won’t fall to fire-sale prices. But there’s someone out there willing to take the other side — meaning they’re betting the company’s shares will tank.
We get paid upfront to make that bet, and we keep that money no matter what happens next.
If shares stay flat or rise, the option expires worthless and we keep that money as 100% profit. The option might be worthless to the option buyer, but the income deposited in our account is not.
If shares fall, the worst thing that could happen is we’re forced to buy a company we like at a bargain price.
Selling put options can be part of a conservative income strategy and can also be used as a stock purchasing strategy to ensure you only buy when stocks are cheap (and earn income while you wait for the market to come to you).
I started sharing this strategy with Income Trader readers almost three years ago. Since then, we’ve used this technique to make money 105 times in a row — without closing a single loss. This is as close to a sure thing as you’re likely to get when it comes to investing.
In fact, after years of listening to my Income Trader subscribers rave about how much money they were making — $800, $2,000, even $5,700 or more every month — 32-year-old customer service rep Emma Anderson gave it a try.
To prove how easy it is, we made a video that shows you how she earned $274 in just two minutes. Watch it here.