This stock investing strategy is one of the safest strategies around but one that can deliver a great return of around 5% per month. It’s so safe in fact that you’re able to do it in your IRA account.  It’s a perfect cash flow strategy because you get money into your account the day you do it, and you don’t need to be in front of the computer all day.

So let’s get started in understanding this stock investing strategy. Let’s first look at how this stock investing strategy works and why it is so good in lowering risk and giving such great returns. Stock investing for regular monthly cash couldn’t be easier.

Right, let’s assume for a moment that we own some shares in a good company. I’ll show you later how to get the money to buy these shares. Let’s say that you bought this stock at $20 per share.

What we do is this… With this stock investing strategy we make an agreement with someone to buy our shares from us for say $21.00 if they ask us to on or before an agreed date (let’s say for this example the agreed date is the end of next month).

Because we are selling to them the right to buy our shares, they pay us a fee; let’s say 50 cents per share. So we have entered into an agreement to sell our shares that we bought for $20.00, to the other party for $21.00, if they ask us to by the end of next month. Pretty simple hey!

It’s similar to renting out your house, because when you rent out your house you give someone the right to use your house and in return you get paid rent.

Now when I explain this stock investing strategy to people I always get the same four questions…

1. Why would anyone pay me to buy my shares at a higher price than I paid for them?

2. How do I find someone to enter into an agreement like this?

3. How do we agree on the sell price, the fee and the date?

4. What’s the catch?

5. The Technical Stuff

Check out the answers by clicking on each question. If you have a specific question, ask it at our New Stock Market Forum. Be the first to ask a question.

Disclaimer: This information is provided for educational purposes only.

Tags: cash flow from shares, covered calls, Renting Shares