Lifetime Income: S&P500 Plus Strangle Options

I’ve looked at several strategies that can be used to extract income from an investment in the S&P 500.  One strategy involved purchasing a small amount of call options on the S&P 500 in addition to investing in the index, and another strategy involved purchasing a small amount of put options on the S&P 500 in addition to investing in the index.

The strategy described this month is a combination of the above two, and this combination is called a strangle.  The basic idea is that the put option provides some amount of protection from the market falling, while the call option pays for the put option in the years the market rises.

If there are investment topics you’re interested in that I haven’t covered yet please send me an email:

joseph AT StockMarketMovement.com