My primary strategy for enhancing portfolio yields is by identifying trades with the best risk-adjusted option premiums. But many investors never take advantage of these opportunities because they assume options are inherently risky.
In this case, the truth is the opposite.
When used correctly, a simple options overlay can actually reduce risk while dramatically increasing the income your portfolio generates.
Today I want to give you the basics for how two conservative strategies—covered calls and cash-secured puts—can turn an ordinary dividend portfolio into a double-digit income engine, even when the market goes nowhere.
This post originally appeared at InvestingDaily.