The Income Strategy is an extremely powerful portfolio strategy that incorporates a combination of Stock and Options. It is designed to produce a consistent monthly income while providing capital protection for the portfolio.
The Income Strategy is very popular with Self Managed Super Fund (SMSF) and longer term wealth building individuals.
This is an Income Strategy Recommendation for investors looking to buy STO shares at a discount to market. The recommended trade is to sell put options on STO with the intent to purchase the shares. This recommendation is designed for investor looking to generate monthly income with capital protection. If you do not wish to own the shares we will send out a STO Bull Put Spread designed for short-term traders.
- Sell 3 contracts STO September $15.55 Puts @ 50 cents
- Buy 3 contracts STO September $13.67 Puts @ 5 cents
Shares per contract = 1061
Net Credit 45 cents
Maximum Profit – $1432.35
Maximum Loss – $4551.69
Breakeven – $15.10
Return on Share Value – 3.01%
Annualised Return on Share Value – 36.12%
Return on Risk (ROR) -31.47
STO Daily Chart
To speak with a Total Options Advisor or receive ASX Option Recommendations please contact us on 07 5504 2244 or firstname.lastname@example.org