iInvest Logo

We have recently interviewed a client to find out her experience with iInvest and also the market.

Kate M. (name changed for privacy) came to us looking to boost her returns on the $200k of cash she had in her bank account. She owned shares before, so understood the basics of the share market and risks involved.

After speaking with our Master Stockbroker, Haydn Froggatt. It was suggested that Kate look at using the options market to build returns and to help buy some blue-chip stocks at below current values.

The strategy we set up for Kate was selling put options over two blue chip stocks that we felt were undervalued. And would offer a good return via both dividend and capital growth over the next three to five years. By selling puts, Kate was taking on the risk that she could be forced to buy shares at the agreed price at any time. This is why we spend time making sure the stocks we sell options over, are the stocks we are happy to buy and that the strike price of the options contract is a good level to purchase at.

Since opening an account in October, we have sold monthly options over BHP and NAB earning a total of $9,500. Without having to purchase the underlying stocks. So, for the last three months, the return has been 4.75%. Which compared to the average yearly return in the market of 4%, looks very good.

When setting up this strategy for Kate, we took into account that she only had $200k. So we made sure if she was exercised on any of the contracts, she had the funds available to purchase the stock.

This meant her risk was fully covered.

In speaking to Kate, she said she was thrilled with how the strategy had been working and was very keen to continue. She added that the returns have been great and have helped her to have a great Christmas with a little more cash to spend on gifts.

If you would like to learn more about how the iInvest team can help you to boost your returns, please contact us today on 07 5520 8788 to get in touch with a broker.

Learn more about Options Trading: ASX Understanding Options Booklet

Learn more about Haydn: Master Stockbroker – Haydn Froggatt

Contact Us

xcvgv

This document has been provided to you for your general information and does not take into account your objectives, financial situation and needs and must not be relied upon by you as personal financial product advice that has been provided to you by iInvest. If you require advice regarding any aspect of the information and statements of opinion set out in this document, particularly as to whether you should base an investment decision upon the information or statements of opinion set out in this document, please contact your financial adviser.

Distribution

The material contained in this communication is prepared for the exclusive use of clients of iInvest. iInvest is an Authorised Representative (#431611) of Zodiac Securities Pty Ltd (ABN 76142982554) (AFSL #398350).

The information contained herein is confidential and may be legally privileged. If you are not the intended recipient, confidentiality is not lost nor privilege waived by your receipt of it. Please delete and destroy all copies. You should not use, copy, disclose or distribute this information without the express written authority of iInvest.

Disclaimer & Disclosure

iInvest, its related companies, officers, employees and agents may have a relevant interest in some of the securities mentioned but those holdings are not material unless disclosed in this communication. These holdings (or absence of holdings) may change at any time after publication of this communication, without notice.

iInvest, its related companies, officers, employees and agents may earn income, fees, brokerage or commissions or other benefits as a result of recommendations, dealing or transactions in the securities mentioned in this communication. These interests do not influence iInvest in giving the general advice contained in this communication. iInvest, its related companies, officers, employees and agents may trade in financial products which is contrary to the recommendations given in this communication.

You should not act on any recommendation made in this document without first consulting your investment adviser in order to ascertain whether the recommendation (if any) is appropriate, having regard to your investment objectives, financial situation and particular needs. Nothing in this communication shall be construed as a solicitation to buy or sell a financial product, or to engage in or refrain from engaging in any transaction. We cannot guarantee that the integrity of this communication has been maintained, is free from errors, omissions, misstatements, virus interception or interference.

Copyright © iInvest Trading & Advisory, All rights reserved.

Print Friendly, PDF & Email