It's Time to Earned Lots of Cash...

CVS Health Corporation (CVS) provides customers with general retail and health care services. The stock has gone no where this year which presents a great time to "sell for income."

It is a solid company generating consistent income each year. Has a healthy balance sheet and is trading at a cheap EV-to-EBITDA ratio of 8.67. EV-to-EBITDA is an alternative valuation method to PE (Price to Earnings Ratio).

The trade today is selling puts on CVS. For every 1 put you sell you are obligated to purchase 100 shares of stock from the put buyer at the given strike price.

Sell CVS Strike $79 Sep 08, 2017 at $1.07 or better. Time in trade 24 days. This produces a 20% annualized return.

If stock closes below $79 per share on September 08, 2017 you will be assigned 100 shares of stock for each put sold. This is a great price to acquire a wonderful company. Once you own the stock you can then turn around and start selling call options (called covered calls) and generate more income.

If the stock closes above $79 per share on September 08, 2017 the option will expire worthless and your capital will be free for additional put selling opportunities.

The google doc below shows the details of this trade. Feel free to change the dates and numbers to experiment with different time frames and option premiums.
https://docs.google.com/spreadsheets/d/1dIPj6aSzIk4TQ8h2bo2NpcfYOuqg4D8icL1sUSRXdSk/edit?usp=sharing

I would keep each position at less than 10% of your overall investment portfolio. For example you have $80,000 investment portfolio, then you would sell 1 put option (which represents 100 shares of stock or $7900.) If you have $800,000 then you could sell up to 10 put options for CVS.

Previous post give more detailed information about the strategy:
https://steemit.com/finance/@slider2990/first-step-is-to-establish-the-appropriate-investment-account
https://steemit.com/stock/@slider2990/investors-do-you-want-to-earn-12-20-yields-right-now-option-selling-part-1

Thank you for your interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.