Public Announcement: Launching A New Idea List for Defensive Investors!

Investing in low-beta stocks with juicy dividends growing at a decent clip (inflation rate) attracts many investors such as retirees. However, besides the dividends there's no way to reduce the cost-basis (other than dollar-cost averaging) or generate additional income in sideways markets. That's why Option Generator launched a new service for defensive investors looking to at least double their dividend yields or in some cases quadruple their annual income!

With valuation multiples looking stretched and volatility picking up in some sectors, this approach will bear fruit in an environment where forward returns are going to be inferior to the long-term average. Take Verizon Communications for example: a 4+ % dividend yield with a small growth rate of 2% is thus expected to produce a total annualized return of 6%. By implementing a 6-leg option strategy, we're capable of doubling that yield while reducing our breakeven point by 13%.

The strategy goals are:

  • Looking for a better risk/reward than just owning the stock outright

  • Dividend-tax friendly way of investing in foreign stocks (tailored to the needs of our Belgian members and wealth management clients)

  • Investing in solid dividend stocks that are less volatile than the overall market: less outlier moves

  • Allowing low-volatility stocks to participate in our portfolio strategy

  • Benefitting from put skew: puts are oftentimes more expensive than calls

  • Benefitting from sideways price action

  • Sometimes: implicitly long volatility hedge through long calendar spreads

Sign up for this brand new service on our pricing page and receive other compelling long-term ideas which will lead to more consistent returns!

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