I know we are now two-thirds of the way through January, but I’d just like to wish you a belated Happy New Year. And let’s face it, after the last two years, I think we all deserve a great 2022!
Here at FIRE Revolution, we have had a great start to the year.
As you may know, we teach regular investors — just like you — how to harness the amazing power of stock options to supercharge the income they can receive from their investments. And the new year has certainly got off to a flying start. We have welcomed onboard a new intake of clients who are now beavering away through the course materials, asking questions in the forums, and attending our regular Zoom meetings.
Over the course of a thirteen-week programme we will take them from options novices to expert FIRE Revolution traders who can pull instant money from the markets whenever they wish.
Here’s what John T. who started on the 31st December has to say:
I joined FIRE revolution strategy because the concept behind it made total sense – all the trading strategies I had tried previously had a flaw of some sort related to risk, time commitment or both, and this strategy gets around these, allowing me to make decisions and place trades in a leisurely and non-stressful way.
Greg’s explanations are clear and thorough making the course easy to understand, and the back-up support has been excellent.
So far I’ve placed three trades, each bringing in between 16.9 and 20% annualised yield, and I don’t need to do anything with these for a couple of months.
And the great thing is, the FTSE 100 — our natural hunting ground — has also had a cracking start to the year. If you follow any of the financial press then you will know that our home market has been cheap for a long time. A combination of a Brexit hangover, the pandemic, and a fascination with trendy meme stocks in the US, had left our major market a little unloved and trading sideways.
Now, a range-bound market is still a great place to invest using the FIRE Revolution strategy. But even better, is a rising market. And you only have to look at a chart of the FTSE 100 to see that things are starting to move in the right direction. It looks like the rest of the world has finally caught onto the bargains available amongst the huge blue-chip stocks that call the FTSE 100 home.
And that’s great news for us, as these are exactly the sort of stocks we love to use with the FIRE Revolution strategy. The bigger and more boring the stocks, the more easily an investor can sleep at night, and the happier we are to use them as the basis for a FIRE Revolution campaign.
So, what have we actually been up to…?
Well, in the last week, I have closed out a cash-secured put trade on BAE Systems — the huge defence contractor — for an instant payment of £137.50 into my account. That equated to an annualised yield of 28.7%. Just compare that to the forecast dividend yield of 4.2% and you’ll see why income-seeking investors love this approach so much.
Also, along with other members of our community I have recently sold cash-secured puts on banking behemoth Barclays. They look very likely to expire worthless this Friday, which is a great result for us. Selling the four options brought in a total of £190.00 with an average annualised yield of 17.9%. And crucially, by selling the options, we ensured we would still be making money on the position even if Barclays shares dropped by up to 8.6%.
Try doing that with a ‘buy and hold’ or spread bet position.
And speaking of the techniques available to you when you invest using stock options, on the 4th of January I initiated a stock repair strategy position on my holding of Vodafone shares. There is no doubt that the telecommunications giant is great solid long-term investment, but the shares recently took a tumble.
That’s not a problem as we can continue to sell stock options on our position and bring in extra income. But I also wanted to help the share position recover more quickly. So, I used one of the advanced options-based techniques that we teach on the programme that will allow my Vodafone shares to get back to breakeven, with just half of the increase in the share price. And that clever little move doesn’t cost me an extra penny.
These are just some of my recent trades. But our clients have been busy too.
Mark recently sold puts on BT Plc that would obligate him to buy the shares for 170p each (that’s 13p less than they are currently trading for) if they drop below that price by the 18th of February. And he was immediately paid £1,515 for the privilege.
On the 6th of January, Angus sold covered calls on his ITV shares that will trigger if the price rises above 125p (it’s currently at 118p) by May. He was immediately paid £195 for the trade and will likely pick up the 3.3p dividend per share due in April as well.
And on the 13th of January, Barry brought in £325.80 by selling a 1,250p February cash-secured put on Smith & Nephew — the huge orthopaedic device and medicine manufacturer. That equates to an annualised yield of 26% and will trigger if the share price is below that point at the close of play on the 18th of February.
If the share price remains above that level, then his obligation will expire, and he can sell another. Rinse and repeat. Or, if the share price is below 1,250p on the third Friday of February then he will be obligated to buy the shares at that level. That’s no problem either. He will become the proud owner of shares in a top-quality UK company and can start to sell covered-calls on those shares to bring in additional income.
If you are looking for a way to invest in the stock market that does not rely on an increase in the share price to make money, can deliver up to 4 different income streams for each stock you target, and drastically reduce the risk of directly buying shares, then FIRE revolution could well be for you.
We run regular webinars where we explain the strategy in detail and demonstrate it live in the market as well as discussing the training programme we offer and answering all your questions.
If that is of interest, then I’d love for you to join me at our next live webinar on the 26th of January. Register now here