At Investwell Australia, we keep things fairly straight forward and will offer you our expertise in the following areas.
Shares
Why invest in the stock market? A look at the last 40 years!
The chart of the XJO (top 200 stocks) demonstrates that the Australian share market has steadily grown over the past 40 years, represented by the blue trend line. Despite periods of significant market corrections, long-term investing remains the most effective strategy to build wealth and secure a comfortable retirement.
To succeed, it's crucial to grow your portfolio year after year, regardless of market conditions. At Investwell Australia, we employ risk management strategies with strict money management rules, including predetermined stop losses to limit downside risk. This ensures a balanced approach, allowing your investments the flexibility to move within an upward trend while protecting your capital.
How we help you succeed
Build a personalised share portfolio tailored to your goals.
Provide you with access to your online share portfolio
Offer expert guidance and recommendations every step of the way.
Options can be relatively simple providing that you stick to basic strategies. By selling a cash covered put option, we commit to purchasing a stock at a predefined price, known as the strike price, at a future date of generally one month ahead. We look for a strike price that is approximately 10% below the current share price, which provides us a higher probability that the trade will expire safe. Once the trade is placed, we are paid a premium of approximately 2 to 2.5%, based on the total exposure value. When the share price finishes above the strike, by the option expiry date, we expire safe from the trade, which allows us to repeat the process the following month. Otherwise, if the share price falls below the strike price, by the option expiry date, we would prefer to roll the position to a new month, effectively extending the expiry date, rather than purchase the stock (via stock assignment). Overall, the strategy aims to generate income from premiums while managing risks associated with stock fluctuations.
Generating a Consistent Income Stream with Cash Covered Put Options
At Investwell Australia, we utilise a proven strategy of selling cash covered put options to generate a regular, consistent income stream for our clients. This income acts as profit extracted from the market each month, effectively supplementing your annual income.
As a valued client, you’ll benefit from:
✔ Active Portfolio Management
– We continuously monitor the market and adjust strategies in line with your Investment Strategy.
✔ Quarterly Reconciled Reports
– Gain full transparency with detailed reports on your trades and portfolio performance.
✔ A Rewarding Investment Journey
– Confidence in a structured, well-managed approach designed to build long-term wealth.
