| Want to know the oldest secret to making money in | | | | yes, that can work, but it's not a sure thing. |
| the stock market? Do you really? | | | | The direction of the price is not a sure thing. |
| I've already given you a clue. The word oldest is your | | | | The passage of time is. You want to sell time. |
| clue. | | | | How? |
| The oldest secret. | | | | Well, you have to use options. You sell a credit spread. |
| Still not getting it? | | | | A credit spread is where you trade two (or more) |
| Here, tell me what are the two things that are for sure | | | | options, and get money deposited instantly into your |
| in life. Death and taxes, right? | | | | account. |
| Ever stop to think that there is one more thing that is | | | | It works something like this. If the stock is trading at 30, |
| for sure? Again the word oldest is your clue. | | | | you might sell an option trading at 35 and buy one at |
| Here's the answer . . . | | | | 40. Assuming those were call options, the 35 one cost |
| Time. | | | | more. So buy selling it, you bring in more that you put |
| The passage of time is a certainty, and believe it or | | | | out. |
| not, it is the forgotten secret to making money in the | | | | You end up with a credit. And you are selling time. If |
| stock market. | | | | time passes, and the price isn't above 40, you make |
| You see, most people try to make money in the stock | | | | out with whatever the credit was (varies for each |
| market by predicting the direction of the price. And | | | | spread). |