STRATEGY OF EARNING FROM IDLE STOCKS LYING IN ONE'S PORTFOLIO

1. I have come across an advice number of times that invest in blue chip companies as they pay handsome dividends as well as stock price appreciation scope. I had acted on said advice a number of times and held numerous blue chips but am also saddled with a number of stocks which do not pay a penny as dividend.

2.On my raising query to said companies regarding non payment of dividend to which I got a response that the said excess cash is utilized for overseas acquisitions, fund research and of course save it for a rainy day. I was satisfied with the reply as at the end of the holding period the price of said scrip had multiplied a number of times due to availability of interest free income for their growth.

3. Since these are blue chip companies which are close to my heart and am not interested in selling them and thus came across this interesting strategy of leveraging options to our advantage. The modality is simple where the owner of the stocks for which options trading is available sells “at-the-money” or “out-of-the-money” calls on held stocks (Covered Calls). One is able to make money if one is able to strike (expiration) the price of option at or above the current stock price. If one sets the strike price so high that the stock doesn’t reach that price, one keeps his stock as well as pocket the premium.The strategy works best for stocks like Microsoft (MSFT), Google (GOOG), and Ebay (EBAY)which are heavily traded.

4.The above strategy can be executed at least 12 times a year and at times it may reward up to 72% per annum as additional income from idle stocks lying in one's portfolio. However I found that an expert advice can help one to leverage the best gains out of this system and I found PowerOptions providing its patented SmartSearchXL® technology at reasonable rate which enables a user to Find, Compare, Analyze, and Make Money with poweropt stock options trading by virtue of availability of the essential data.