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The ETF Covered Call Plus Portfolio

Portfolio Snapshot

Relative Risk (1–10): 6 (1=highest)
Capital Requirements: $5,000–$50,000
# of Trades/Month: 4 to 8
Recent Holdings: IWN, XLE
Monthly Cost: $49.95
Try It for $1 Buy It

The most amazing invention since the pocket sized cell phone was ETFs or Exchange Traded Funds. These operate like dumb mutual funds.

They consist of a package of underlying stocks that follow a specific theme. ETFs trade like stocks but are really a set of stocks so they give investors a little bit more diversification and cost less than a mutual fund. How could this wonderful invention ever be improved upon?

Well… When you unsuspecting neighbor goes out and buy an ETF they are taking on the full risk of that position and probably paying full price. What if there was a way to reduce risk and reduce the price per share you pay on day one? Our ETF Covered Call Plus Portfolio service does just what we all want… Reduce risk and reduce the price paid for the investment.

Read on for the details...

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Every month the ETF Covered Call Plus Portfolio service points out a series of covered call trades along with a companion series of hedged trades using the same underlying ETFs requiring much less capital.

The goal is for each trade to generate at least a 5% return over 60 to 180 days even if the underlying ETF drops in price. Only underlying ETFs with reasonably strong technicals will be used. At or near option expiration either the ETF will be called away, the call option we own will be executed, or the sold option will be "rolled" to a month farther out in time to capture more cash for the portfolio. For the covered call trades usually there is no closing transaction required while the hedged trades may require follow-on trades to maximize returns. Using sophisticated computer models we hunt down the trades with the highest return and the lowest risk.

This is a great way see the types of trades that can rely on solid diversified ETFs to produce double-digit annual returns while reducing overall risk of holding the stock and conserving your investment funds.

The idea behind the trades in this portfolio is to identify the most solid ETF possible then create trades that in most cases may actually be less risky than just buying the ETF alone.

Less risk, higher returns, and solid stocks. Sounds good to me.

Then there are the Hedged trades… For the hedged trades (the plus) this portfolio uses an option debit spread strategy with a bought position way out in time and a sold position around 60 days away. Using this method the trades cost a small fraction of what it would cost to buy the ETF.

Using sophisticated computer models, we hunt down the trades with the highest return and the lowest risk.

And it's guaranteed! Click here for more information on our Money Back Guarantee.