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How Does Share
Renting Work?

The first thing to do is consider what stock you are going to use to rent out. Not all stocks listed on the U.S stock exchange are registered for options. There are strict guidelines a company must comply with in order to qualify.

So if you already own some shares you need to find out if they are optionable stocks. In other words, are you able to trade options over them?

This is something a stockbroker can help you with or if you don’t have a broker, send us an email and we’ll help you out info@optionspay.com with a shortlist of liquid optionable stocks to make your selection process easier.

If you don’t yet own any shares, our team of experts and I do all the work for you and tell you which stocks to buy and exactly which calls to sell on the stock.

We personally invest on the U.S market which is more liquid. In the U.S market one option contract relates to 100 shares. The U.S market provides us with a better entry point for higher return on our investment.

Let’s Walk Through An Example

Let’s say John and Jill, an average couple decide to rent out their shares for extra income. They want to put share renting into action.

They follow OptionsPay Cashflow Strategy, practise on paper, set up their trading accounts with $10,000 to invest.

Now, John and Jill select a share (Cisco Systems Inc.) that is a blue chip company – profitable and not currently overvalued.

Cisco Systems Inc. shares are currently trading at $17.99 each. They buy 500 shares that would cost them $8,995 and they would be dealing with 5 option contracts (1 option contract controls 100 shares).

cisco systems inc

They check out the rental income and realise they can get approximately $2.35 per share if they rent it out for say $20 for the month ahead.

They place their trade and are paid $1,175 ($2.35 rental income x 500 shares) into their bank account for that month, deposited immediately!

They also realise that they could do this most months of the year. Plus they accept that if Cisco Systems Inc. shares goes up in price by the end of the month, and if it’s above the $20 price, then their shares will be sold for $20.

But you see, they realise this in advance, and they’re prepared for it. They know they will not only make the $2.35 per share in rental income but also $2.01 per share extra profit…

$20 sell price – $17.99 buy price = $2.01 profit
Total = $2.01 profit per share x 500 shares = $1,005 (PLUS their $1,175 call option premium they received upfront!)

And if the share price fell slightly or stayed the same, they would pocket the $1,175 and keep their shares and rent them again next month.

Starting to see how powerful this share renting strategy is?

That is a 13% return on investment for John & Jill for just 4 weeks! Very impressive.

If we relate this to property investing, your written Call Option Contract is your ‘lease agreement’ and your ‘tenant’ is the speculator who pays you a premium, which is your ‘rent’.

To put in a simple term… landlord owns a rental property and a tenant pays them monthly rent. Sharelords owns the shares and speculators pay them monthly rent.

As sellers of the Call Option you make money…

  • If the stock goes up
  • If the stock goes nowhere
  • If the stock goes down less than the premium you received.

But don’t take my word for it. Here are a few recent comments our subscribers just sent us…

Our Subscribers Are Getting Rich

I’m Really Excited! Made $1,120 In 4 Days.
“I’ve been looking for opportunity to replace my income so I can spend time with my family and friends. I haven’t found any opportunity that is simple and easy to use as the OptionsPay Cashflow Strategy. The economy is changing, and unstable. I found out that making money from the stock market has little to do with background and financial status and everything to do with the RIGHT STRATEGY! Stumbling across this wonderful strategy is the best thing that I’ve come across so far. I’m really excited. I believe anyone who is excited as I am can do this too”. Michael R.
It Just Gets Better And Better Every Day. $2,167 In 30 Minutes
“I started using your strategy and immediately began to earn thousands in extra income. $2,167 in less than an hour. It’s truly amazing, it just gets better and better every day! Thank You!”
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Click here to read more testimonials from our subscribers >>

What About Risk?

Of course there are risks involved – there are risks with any investment strategy – but once you know what they are, you’ll see that often the risks can be relatively low.

Once you rent shares for a monthly income, you buy insurance for your shares called ‘Protected Buy Write’ protecting 90% – 99% of your capital without costing you any money out of your own pocket.

Buying insurance limits your risk. It allows you to continue to generate income free of the fear the stock will fall in price.

Think of buying options as buying time… you are buying the amount of time you feel is needed in which to see a significant move in share price, in this case, in which to protect your investment.

In fact, the appeal of the insurance (Protected Buy Write) is that no matter which way the share price goes, you are smiling ☺.

A Word On Writing Covered Call Options

Both the Protected Buy Write and Covered Call strategy requires you to own shares so that your risk is covered by the asset.

Either way, there is always the possibility that your written option contract will be exercised and if that happens, you are obligated to buy or sell the related shares at the exercise price, or strike price.

We know that if this were to happen you’d still realise a profit as you would benefit from any capital gain in the share price as well as the premium you would receive from writing the position.

Take advantage of our Money-Back Satisfaction & Success Guarantee.

Use it to convert your purchase into a “no risk take-it-home-for-a-test-drive” trial.

In other words…
Purchase and then decide.

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