Our
Process
A systematic, Triple Income Strategy for building trades that consistently outperform the market.
Our Process
All trades communicated to you via email in real time.
Customer Centric. Efficient. Easy to Execute.
The PutsPlus™ strategy for our trading plan begins with in-depth research that identifies strong, up-trending stocks ideal for selling high-premium put options. When assigned, we hold these quality stocks for the long term and strategically write covered calls to maximize returns. Throughout the process, we keep you fully informed: clearly, concisely, and with complete transparency.
Our Triple Income Strategy for Building Winning Results
Our Triple Income Strategy refers to the core components of our trading process that generate returns within each trade sequence. These components include: (1) selling put options, (2) equity ownership, and (3) selling covered call options. By actively managing this process and strategically executing each return-generating element, PutsPlus™ seeks to achieve a high probability of success and attractive risk-adjusted returns that, over time, aim to outperform broader market benchmarks.
Selling the Put
Income Stream 1Our trade process begins with selling an "out of the money" put. We generally target a put strike price that is at least 7% below the current stock price as this allows degradation in price without assignment on expiration day. One of our goals is to simply collect our put premium and walk away to the next trade. And if the stock closes above the strike price on the expiration date, our trade is closed.
If the Stock Is Assigned
Strategic Decision PointIf the stock closes below the strike and is assigned, we decide after more research to hold the stock uncovered or to write a covered call and collect the premium. Remember, we sold the put on a stock we would be happy to have in our portfolio, so owning the stock is a good thing.
Holding Without a Covered Call
Income Stream 2Our research may tell us to hold the stock as it soon will appreciate. We may hold the stock short term or long-term depending on the health and trend of the stock. Since we trade only strong stocks, we make a lot of return by simply holding our assigned stocks for the long term.
If the Stock Declines After the Put Sale
Risk Management ProtocolFrom time to time, a stock will decline while we hold the sold put. In those cases, after assignment, we will hold the stock until it recovers and/or write far out-the-money covered calls and "nurse" our return back to health. The goal, with all our trades, is to never lose money and to beat the market. But, if a trade goes heavily against us, and the stock becomes unhealthy, we will sell soon after assignment and take the loss.
Writing the Covered Call
Income Stream 3We make a lot of return on writing covered calls after we are assigned a stock. If we really love the stock and expect a long future uptrend, we will leave the stock "uncovered" or write covered calls far out-of-the-money. If the stock does not excite us as much, we write covered calls at the money and very close to the current stock price so the premiums are higher. If we were assigned the stock more than a few percentage points below the target, we will write our covered call "out-of-the-money" so that we do not lose money if we are called out on the expiration day.
Win on Every Triple Income Strategy Trade and Beat the Broad Markets…. Those Are Our Goals!
Other Important
Information
About Our Process
Trades Are Entered During The Trading Day
PutsPlus™ does not enter trades at the open of the market. Many services do this and report an opening price that is wholly inaccurate as you, the regular investor, cannot capture that same price. This approach skews the returns reported by other services. Our trades are made during the day and reported to you immediately via email. We also attempt to avoid trading in the last 30 minutes of the day so that you have time to react and make your own trades prior to the closing bell.
Trades Are Not Overly Time Sensitive
You don't have to make our trades in the minutes after we report like you would in a day-trading situation. Act promptly, but small delays typically don't break the thesis.
Trades Are of a Reasonable Duration
The vast majority of our sold puts and covered calls are written for the following month's expiration with a duration of approximately 30 days. For both puts and covered calls, our average hold period has been 28 days. From time to time, we will sell put or call options that expires in 2-3 weeks or a few days if the trade set up is unique and profitable. Rarely have we written puts and covered calls that go out beyond a single month. Many of our stocks, however, are held for longer periods of time as our goal is to enter quality stocks and build a long-term portfolio around them.
We Avoid Earnings, Ex-Dividend Dates, & Late Day Trades
We generally avoid selling puts that extend through earnings announcements or ex-dividend dates. Holding positions through earnings increases the risk of significant price movement, which runs counter to our objective of maintaining a high win rate. Similarly, we typically avoid selling puts that span the ex-dividend date, as the stock price is expected to decline by an amount approximately equal to the dividend. In addition, all trades are placed after the opening bell and within the final 30 minutes of the trading session, allowing sufficient time for you to evaluate the opportunity and execute your own trade on the same day.
Ready to Get Started?
Our Triple Income Strategy is designed to deliver a high win % and outperform the market. Join now and start benefiting from our proven strategy.
View Subscription Plans