At C&L Investwell, we keep things fairly straight forward and will offer you our expertise in the following areas.
Shares
Why invest in the stock market – Let’s look at the last 40 years!
The chart of the XJO (top 200 stocks) shows the Australian share market has moved up steadily over the last 40 years (indicated by the solid blue trend line). Even though we have had several large market corrections along the journey, investing over the long-term is the best way to build your nest egg, so that you can retire wealthy.
It’s important to grow your portfolio year on year, regardless of the market direction, to try and maximise gains while keeping your capital safe. C&L Investwell utilises risk management through rigid money management rules that restrict large losses by utilising stop losses at predetermined levels. This provides a good balance between risk and allowing the stock room to move naturally up and down within an uptrend.
C&L Investments will:
Help you build your personal portfolio
Provide you with access to your online share portfolio
Provide guidance and recommendations along the way
Options can be relatively simple providing that you stick to basic strategies. An option contract derives the value from the performance of the underlying share. When we sell a cash covered put option, we effectively commit to purchasing a stock at a predefined price (referred to as a strike price), at an expiry future date (approximately 1 month ahead). We generally look for a strike price approximately 10% below the current share price, this provides us a higher probability that the trade will expire safe. With this type of trade, we also have the advantage of time that works for us given that we are paid for both risk and time. Once the trade is placed, we are effectively paid a premium of approximately 2 to 2.5% (based on the total exposure value/commitment), which is effectively a payment for the commitment or risk to purchase the stock where the stock drops below the strike price by the expiry date. At the time of the option expiry, we would either expire safe from the trade (share price finishes above the strike) which allows us to repeat the process the following month. However, where share price falls below the strike price (at the time of the option expiry), we could either take the assignment and pay for the stock, but generally we would manage the position to a new month (which is beyond the scope of this explanation).
Utilising a strategy of selling cash covered put options, C&L Investwell will look to provide their clients an ongoing regular and consistent income stream. This income stream is effectively profit that is pulled out of the market on a monthly basis and added to your annual income. As a valued client of C&L Investwell, we will actively manage your portfolio by monitoring the market and advising you in line with your Investment Strategy. We will also provide to you quarterly reconciled reports of your trades so that you can be confident with the trading strategies utilised to ensure a rewarding investing journey.