Walter Energy, Inc. (WLT): Pocket 4% Now for the Chance to Buy This Coal Stock at a 20% Discount

Recommended Trade Setup: Sell to open WLT Sept 11 Puts at $0.40 or better. (This is a volatile stock, so I suggest using a limit order to get the desired price.)

This cash-secured put sale would assign long shares at $10.60 ($11 strike minus $0.40 premium), which is about 20% below WLT’s current price, costing you $1,060 per option sold. If the options expire worthless, you keep the $40 premium, earning a potential 4% return in 23 days.

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

If WLT 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-Barnhart, 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.

$1,000 Per Month Trading System You could collect $1,000 or more per month without buying a single stock. Click here to learn how…