Lifetime Stock Market Income

Curated Section

My new discovery this week is https://stockanalysis.com/ 

I got a recommendation of 3 banks to invest in this year in 2025 and since I never take a tip on face value. I did my own reasearch and that stockanalysis website helped me cut down my work time frameby 50%

Much of the information was right in front of me without having to go between mulitple websites.

Now none of the 3 tip stocks made my cut.

When I do reasearch to buy a stock the first thing I do is figure out whether the EPS and the dividend have been growing annually.

I prefer year over year for atleast 6-7 out of the last 10 years. Bank stocks rarely have that because the company itself doesn’t have a strong competitive advantage.

However,every person I know that has a high net-worth owns shares in , and usually 1,000s of shares in, a local banks stocks. There is something to that and I’m gonna figure it out.

Starting a Stock Market Income with $8,000

When investing in the stock market most of us dream of one day living off the passive income and having beach money.

You know what I mean right? The kind of money that comes in whehter you work or not. It is the income everyone dreams of.

Less than 2% of American’s ever see that kind of money. You can…. and here is how!

As a stock market operator you do not have build your own business to develop a laptop lifestyle income.

All you need is 2x your annual salary(aftertaxes) in a trading account earning 5% a month for one year.

If you earn $5,000 a month then you need $120,000 @ 5% a month = $6,000 and you’ve replaced your income. Do that for 12 months without spending the money and you have $72,000 in an account before taxes.

Now at that point you may not be able to completely quit working and you are certainly not rich, but you have a stock market income ongoing for the rest of your life.

Keep growing the principle and your 5% a month income will grow. If you never spend any money from that first year of earnings and you build up the account for a time.

Then you can write you own paychecks out of that bank account ongoing for the rest of your life.

Now where does the original principle come from and how do you earn that 5% a month?

Covered Calls- Real Ongoing Stock Market Income

Let’s start out with the knowledge that doing a covered call is a trade and it is probably considered more risky than a paycheck or a dividend check.

However, I am all about showing you ways to print money from the stock market and this is a working printing press that has been in opertion for longer than I have been alive!

You do not start with alot of money and therefore you limit your risk. Building up into being comfortable with putting $120,000 into a stock trade.

You can start off with $8,000 or less and I did start out with less. The $8,000 is just easy math. Your 5% a month return will be $400. The next month you do a stock buy with the $8,400 and then your 5% return on the covered call will be a little more.

The money grows like that moving forward.

Covered Calls Questions Answered:

How does a covered call earn you money?

You buy a stock @ $100 and you can then sell any strike price option that is out of the money for a profit. Your profit is the bid price of the option and you get that money upfront times the number of shares. That money is called your premium for selling the covered call.

If you let the call option expire worthless than you keep the premium. However, if you sold a $105 call option and the stock rises to $110 or more within the month your call option expires; then you will be forced to sell your stock @$105 when the stock is @ $110. What a shame lol!

Wait! Remember you bought that stock for $100 so you have a profit of $5 a share plus your profit from the premium. I just hate printing money that way.

How much money do you need to start?

You have to be able to buy 100 shares of the stock you want to do a covered call with. The options contract is sold in 100 share bundles so in order to sell a covered call of 1 contract you have to own 100 shares of that stock.

Your only buying these stocks with the goal of creating a covered call income so we should not care if the company has good investment fundementals or not.

The good news is I use a website called borntosell.com and it will show you how to find affortable stocks that meet your money situation.

Can you lose money selling covered calls?

Yes, if you sell in the money calls on a stock you just bought and therefore have no equity in the shares owned.

If you stick to selling at the money or out of the money calls ( my go to) then 85 -90% of your call options will expire worthless without being exercised.

If the call is exercised and you have sold out of the money you will have some sort of profit within the difference in the sell price and purchase price.

Keep in mind that this is should just be one piece of your stock market plan. If you only create income then you cannot have a funnel of money buying stocks for eventual passive dividends.

But if you only buy dividend stocks then you are leaving easy money on the table that could enhance your life. I came to the big realization the other day that you can be alot more relaxed about life if you know, whether your options trade works or not, you have plan for creating income and passive dividends for “retirement”.

Learn the edge that you need and apply it to begin building your wealth in the stock market without overpaying for advice that keeps you poor.

I am coming off a year of a total return in 2024 of +462% gain on my money… what is your advisor’s target for your money?

Your friend in success,

Robert M Morris

*Please note this is not financial advice as I am not a financial advisor and honestly not sure I want to be. Give this information to your own financial advisor before acting on it in your own voliation.