Creative Ways To Make Money Now On Your Long Term Stock Investments
Investing into strong companies can help you to make a decent profit in the market in the long term
. However sometimes it is great to get a little extra cash flow now.
How can you make money from your long term investments today? Here are a few simply strategies that investors are using now to increase their profits.
1. Buying Dividend Stocks
The easiest way to make extra cash flow is to simply invest into dividend stocks. Some stocks offer a dividend which pays their investors month after month. This can be a great way to make a little extra cash flow off of your stock.
There is just one problem here. If you want to make a lot of passive income this way you are going to need to buy a lot of stock. That is because stocks typically pay out between 1-10% of their stock's value in dividends per year. But luckly there are other ways to make an income from your long term investment.
2.Covered Calls
One more powerful way of making money in the stock market is to sell covered calls. This allows you to sell another investor the right to buy your stock from you at a specific price and make a premium for it. For example say you own stock XYZ and it is trading at $63. You can sell the $65 call and make money up front.
There is one problem with this however, if the stock runs up fast you could end up getting out of the position early. In the above example if the stock shoots up to say $68 you would have to sell it at $65 because that was the strike price of the call that you sold. So only sell calls on stocks you are comfortable selling.
3. Sell Puts
Another way to make money would be to sell a put. This means you are getting paid to be obligated to buy a stock in the near future. If you sell the $30 put on a stock that you want to own then you will make money up front and end up getting into the trade if the stock closes below $30 before expiration.