Earn Immediate Income While Waiting for a Rebound in This $7 Stock

Recommended Trade Setup: Sell to open MCP Oct 7 Puts at $0.35 or better. (This is a volatile stock, so use a limit order to get the desired price.)

This cash-secured put sale would assign long shares at $6.65 ($7 strike minus $0.35 premium), which is about 9% below MCP’s current price, costing you $665 per option sold. If the options expire worthless, you keep the $35 premium, earning a potential 5.3% return in 24 days.

But remember, you should only sell this put if you want to own MCP at a discount to the current price. If you are assigned the shares, a November covered call can be sold against the stock to lower your cost basis even further.

If MCP does not fall below the strike price before expiration, then you keep the premium you collected, essentially getting paid not to buy the stock.

Note: By using this same income-generating strategy, my colleague, Amber Hestla, has helped her Income Trader members earn $6,000, $19,500, even $150,000 this year alone. Click here to learn how you could do the same.