Example: How to get $1,000 per month with basic monthly passive income strategy?

Jan '23 (edited) in Monthly passive income

Hey IR team,

As I receive quite a few emails on how to achieve retirement and generate monthly passive income, here’s a guide on how to generate $1,000 per month using the basic monthly passive income strategy I teach in Investing Accelerator (Week 6).

The free information I sent out in the MPI post already covered this but some of you needed a bit more guidance to generate result for yourself.

So, here’s an example.

First, you need:

1. Understand that selling put options allow you to receive interest as long as you have the cash available to buy 100 shares of the stock

2. Right now, Apple is $126 per share. So to execute this strategy and get $1,000 per month, you need approximately $33,000

3. $33,000 * 3% = $1000 per month

4. So where do you find this option contract?

5. You go to Apple option chain and look for 1 month away from now (Feb 3, 2023 is what I am using as an example)

6. You scroll down to find Feb 3 2023

7. Then you look for a put option that gives you 3% return.

8. In this case strike $120 gives you an interest of $3.35 per share (2.79%) – refer to the image I screenshot from MarketWatch

9. 1 option contract is 100 shares

10. So you sell 3 puts of strike $120 for $3.35

11. This will require capital of $120 * 100 * 3 = $36,000

12. This will give you interest income of $3.35 * 100 * 3 = $1,005

13. Once you enter this trade, your account cash balance will increase by $1,005 immediately as money is immediately deposited into your account (magical isn’t it)

14. If your option expires by Feb 3 2023, you rinse and repeat the steps

There’s a few more details in terms of timing, portfolio management, risk management that I teach in Investing Accelerator.

But with basic monthly passive income week 6, the steps I laid out for you above can already get you very close to retirement.

I will help you make the connection here:

$33K for $1K per month of income

$66K for $2K per month of income

$100K for $3K per month of income

Instead of saving $1M, using basic monthly passive income – most people can retire with $200K - $300K portfolio (aiming for $5K to $10K per month)

The rest of your portfolio can stay in long term investing with SPY or blue chip stocks (keeping it simple for you).

So, the free monthly passive income information I sent out has laid this out for you, which means technically you already have the necessarily knowledge to execute basic monthly passive income.

In a sense, financial freedom is already within your grasp.

With the knowledge above, I am confident that selling Apple options alone would pay for Investing Accelerator many times over.

If you are interested in Investing Accelerator, it is a 7 week coaching program where you learn long term investing, basic monthly passive income and advanced monthly passive income.

With the discount and payment plan available, I expect most people (if not all) can easily cover the tuition with the gains from the second month onwards.

Just the Apple monthly trade above would already cover the tuition cost two times.

If you are interested in Investing Accelerator, you can schedule a call here to take advantage of the January discount – 33% off.

Click here to find a time that works for you to chat. I will answer any remaining questions you have about the program.

It’s not rocket science. So there’s no need to be afraid J

Keep learning. You can do it.

Eric Seto, CPA

#How to get 30% from the market?

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