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Social Proof Podcast

You Become Your Own Bank - Kway Trades (Clip from #325)

Social Proof Podcast

Social Proof Network

Entrepreneurship, Business

52K Ratings

🗓️ 18 January 2023

⏱️ 11 minutes

🧾️ Download transcript

Summary

#entrepreneur #smallbusiness #podcast #howto


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Transcript

Click on a timestamp to play from that location

0:00.0

You can do, if let's say you just have cash, right?

0:03.2

You have cash low coming in and you want to put your cash somewhere in the market.

0:07.3

If you want to get to the market and you want to buy good companies long-term, but you

0:12.1

want to also create a residual income for yourself.

0:15.5

You can use options to rent out your shares basically and receive an income every single

0:20.4

month or every single week, whatever you want to execute it where you now can, let's

0:26.4

say you move $30,000 into Apple stock.

0:29.6

You have your Apple stock sitting there.

0:30.9

You can sell what we call a covered call, which is an option against your stock and it's

0:36.4

basically going to rent out your shares to somebody who thinks that your stock is going

0:39.8

to go up.

0:40.8

They're going to pay you what we call premiums.

0:43.6

Let's say $300 is the contract, so you're going to receive $300 for that two weeks

0:48.2

for renting out your shares to that individual.

0:52.5

You can literally do that over and over again.

0:54.2

If the stock hits that particular price that they're betting that it's going to hit, you

0:57.9

have to sell your shares to them, but again, you're not selling it at a loss, you're selling

1:01.6

out of gain and you're also receiving the premium.

1:05.3

When you think about compounding interest, the cover call strategy is how some demographics

1:09.8

of people out there have been making significantly large amounts of capital and money over a

1:17.7

period of time because it's compounding.

1:20.1

Those people in there, the bank pretty much, you become the bank and you don't have

...

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