We’ve focused this week on a way to tap the hypergrowth cannabis industry to make annual yields in excess of 100%.
It’s no surprise that these incredible yields are found in an industry with incredible growth. Both the current growth rate of this industry and its future potential are staggering.
The idea of combining the fastest-growing sector in the market with covered call options may sound counterintuitive. Why match up a high-growth investing strategy with a conservative income strategy?
Honestly, this is one reason nobody else is doing this: The perception among traders that this is “boring.” But what’s boring about instant income in your account – especially when the yields are so attractive?
My new Cannabis Cash Weekly system combines two of my favorite strategies – growth investing and covered calls – into a new and exciting system that can be very profitable without taking on a lot of risk.
If you’re not familiar with covered calls, the strategy involves both a stock and a call option. You buy shares of the stock and then sell call options against it. When you initiate an options trade by selling them, you get paid immediately.
If the stock rises to the strike price of the option, you then sell the stock at that price, making money there as well. If it doesn’t, you keep the stock and make money by selling more covered calls.
I structure the trade so that we win at least twice on any position – first through the option income, then through the stock itself.
Our Strategy In Action
To help you understand my new Cannabis Cash Weekly system and see the kind of returns I’m talking about, I want to show you show you a real-life example. This is one of my own trades from a few months ago when I was beta testing this strategy. These are actual trades that I executed in my personal brokerage account.
- On February 8, 2019, I bought 100 shares of Cronos Group (CRON), one of the largest marijuana companies in the world. My purchase price was $20.98 per share, so my cost was $2,098.
- That same day, I sold one CRON call option that expired on February 15 with a strike price of $21.50. I received $1.30 per share, and since an options contract covers 100 shares, I received $130 in my account immediately.
- On the option’s expiration date (February 15), CRON closed at $21.29. That was below the $21.50 strike price, so the 100 shares of CRON remained in my account. At this point, I’ve made $130 from the sale of the option, and the stock itself is up 1.5%.
- On February 19, I sold a second CRON call option. This one expired on February 22 with a strike price of $21.50. I received $0.90 per call, adding another $90 to my account.
- On expiration day three days later, CRON closed at $21.92. This time, it was above the strike price of $21.50, so the stock was “called away” from me at $21.50 per share for a total of $2,150. And remember, I kept the $90 in income.
Total return: The CRON covered call lasted a total of 15 days from when I first bought the stock through the sale of two call options to when it was called away. Here are the transactions:
- Initial cost: -$2,098
- Profit from sale of first covered call: +$130
- Profit from sale of second covered call: +$90
- Sale of CRON: $2,150
My net profit was $272 on a cost of $2,098, a return of 13% in only 15 days.
The annualized gain is 316%.
An investor who held just CRON stock during the same timeframe without selling covered calls gained 4.5%. They’d have gotten a little more for the stock when they sold it, but they wouldn’t have made the income along the way. All in all, they made less than half what I did with the covered call strategy.
If you caught my on-air demonstration (click here for the recording), you saw how we made $420 from Aurora Cannabis (ACB) using the same strategy. That’s an instant 5% yield… with only one trade. If you do this every week – as we will be – that adds up pretty quickly.
The Money Is Already Flowing In
I welcomed my first Charter Members to Cannabis Cash Weekly just three days ago, and we wasted no time bringing in the bucks.
Our realized gain on our very first was 3.5%… in just two days. That equates to 638.8% annualized!
Our second trade is still live, but if it the stock gets called away from us next week, we will make 3.8% in seven trading days… or 173.4% on an annualized basis.
Now is the perfect time for this strategy, as the legal cannabis industry explodes and enough stocks now have options for us to sell. This rare window of opportunity to earn huge Cannabis Cash Weekly paychecks will stay open for a while… and allow you to earn some of the largest passive income streams on the planet.
P.S. I beta tested this system with my own money, as you saw. I’m glad I did because it works! In fact, I even show you some of my account statements in a special on-air demonstration.
That’s just the beginning. I’ve identified up to 70 opportunities to collect checks over the coming months of $800… $1,300… even $2,600 or more.
Click here to see for yourself how to use my Cannabis Cash Weekly strategy to generate thousands of dollars… week after week.
Matt McCall’s MoneyLine Podcast
Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt sits down with Mebane Faber, the founder and CIO of Cambria Investment Management. The two touch on everything from the cheapest countries around the wrodl and where to investo today to Cambria’s new cannabis ETF.
You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.
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