Fokas Beyond - Investing in the Stock Market The Smart Way [Part 6]

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Welcome to Part 6 of this multi-part series of
blogs where I will teach you a better way to
invest in the stock market. Come back every
fortnight for the next instalment. Or, to ensure
that you dont miss any part of it, subscribe to
our blogs to be notified of updates by clicking
here Subscribe to Blogs If you have missed
previous parts, please click on one of the links
below to read it Read Part 1 Read Part 2 Read
Part 3 Read Part 4 Read Part 5 In
Part 5, we reached the end of the section that
helps you prepare your mindset for success. The
fact that you got this far means you are ready to
learn the strategy. From Part 6 onwards, we are
going to teach you the strategy. Now, lets jump
into it in detail. Domestic or Foreign? Have
you heard about the Dow Jones? Its an index.
Theres over 13,000 stocks or shares in the US
yet the Dow Jones only makes up the top 30.
Overall since 1988, the Dow Jones is going up.
Can we generate monthly income off the stock
market? Without trying to sound like B.S, yes we
can! Now, let me tell you something. If I said
you can apply this strategy on the Australian
market and generate a return or you can do it on
the US market and double your money, allocating
the same time and effort, would you consider the
US market? Most people would, some wouldnt.
Those who wouldnt might have a fear of investing
offshore. They might think that just because
they arent in the same country as their money,
so to speak, they have more chance of losing it.
They might think there is no comeback if the
money is invested overseas and something goes
wrong.
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These are valid concerns but not ones that
actually need to keep anyone from making a good
income from this method. You can lose money just
as easily in Australia if you simply gamble and
speculate, and there may be little comeback if
your broker simply disappears or declares
bankruptcy. The risks are no higher or lower
with the US stock market in that regard. People
in Australia when they hear about the US market
will tell me they dont know the US market or the
companies. Have you heard of Yahoo, Apple,
Microsoft, Google, Caterpillar, Johnson and
Johnson, McDonalds, Walt Disney, Avis Car
Rental, Netflix, Paypal, Twitter, Tiffany and Co,
Starbucks? They say we know the Australian
market, we know Woolies, they are the fresh food
people.right? So if I said to you, you can
utilize this phenomenal strategy on the
Australian market to earn 1-2 on a monthly
basis or, utilize the same strategy with us on
the US market, invest the same time and effort,
but double your returns, once again, would you
consider the US stock market now? Double the
returns yet allocating the same time and
effort? How many of you would like to generate an
income from the US markets while you sleep and
bring it back to Australia? You can. The beauty
about this method is that it works for you while
you do something else, even sleeping. We do not
stay up at night watching the markets. The key to
long term success and overall greater returns is
to be in this for the long haul. That means
playing it fair and by the rules because you
cant make money if you are in prison. You can
get as rich as you ever want to be legally and
ethically and you get to sleep at night. No
worrying about a tap on the shoulder or a knock
on the door. An investment in knowledge always
pays the best interest. Benjamin
Franklin Before We Go Any Further, Let Me Say A
Quick Word About Fokas Beyond My business, Fokas
Beyond, is staffed with professional investors
and world strategists with a combined level of
experience in excess of 20 years on the stock
market. We have a highly respected global
financial education. I have personally educated
over 30,000 individuals globally on opening
their eyes to this strategy and we are the
foremost leaders in educating clients to invest
with this income strategy right now. We have
members in over 13 countries and we provide the
best coaching structure for our members to
Learn. Grow. Prosper, Together. Now, lets look
at financial reality. I know I have already said
some of this before but bear with me because
repetition does not entertain, but it does train
and I want to make sure you are on the same page
with me. Weve been programmed to have one source
of income in our lives. A job. J-O-B. If you
dont stop to make plans or goals for your
future, youll automatically fall into somebody
elses plans. And right now, those somebody
elses plans are your employers plans. You have
your J-O-B because your employer needs what you
bring to the table your skills, expertise,
experience and even your good name and
reputation. Your employer trades off all of that
to improve their own bottom line. Along the way,
they give you some of the crumbs but rarely any
of the cream. You deserve more than that, but you
dont necessarily deserve it
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for what you do in your J-O-B. You might be very
fairly remunerated for your input
and productivity, even overcompensated or, you
might be getting short-changed. What you need
are multiple pillars of income, remember? So why
not the stock market and if so, why not the US
stock market?
You Can Also Learn this Strategy by attending the
60 Minute Investor Live Online Masterclass for
Free!

• Why Does The Stock Market Exist?
• The stock market exists to transfer vast amounts
  of money from the uneducated to the educated.
  Thats all it is about. A bit like a casino. They
  take the money from the punters and they give
  them a little of it back now and then to keep
  them coming back for more.
• Some get more than others and more often, but
  these are the very few and far between and they
  are merely bait to lure in the great unwashed.
  Unwashed, uneducated, but cashed up. The stock
  market is more subtle than a casino, but most
  gamble their money away there, anyway. Most
  investors are gamblers, speculators who are
  guessing the stock will go up or down and by how
  much.
• So in regards to the stock market, or my stock
  market secret, I simply do the exact polar
  opposite of what 95 of people do. 95 of people
  will follow the herd. I do the exact polar
  opposite. And thats why Im here and thats why
  Im where I am right now, because of that fact.
• The ultimate ignorance is the rejection of
  something you know nothing about and refuse to
• investigate. Dr. Wayne Dyer
• Welcome to Fokas Beyond Covered Calls
• So what exactly are Covered Calls. In the
  simplest of terms, present here in bullet point
• form, are the details
• We purchase stocks on the US stock market in lots
  of 100.

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• We can now create an option against the stock for
  income upfront into our trading account the next
  trading day.
• The option contract we create is very precise. It
  has an agreed price that we agree to sell the
  stock at and an expiry date where the contract no
  longer has value.
• We write Option contracts on stocks we own for
  traders/speculators who purchase our contracts
  in the hope that they will rise in price and thus
  make a profit.
• The buyer of our contract agrees to purchase our
  stock at an agreed price called a Strike Price.
• Global Investors trade the US stock market every
  day and they will continue to do so as they have
  done for decades, even centuries.
• The contract created has an expiry date, which is
  always the third Friday of every month.
• This allows us to generate an income of between
  1.5 4 approximately a month irrespective of
  stock market direction.
• There are millions of option buyers in the stock
  market trading options in the hope to make
  money. In fact, an average of 30 million
  contracts are traded per day. Think about that.
  Do you think we will have a problem finding a
  buyer when 30 million contracts are traded per
  day on average. We create these option contracts
  and sell them to the buyers and for this, we
  generate a return upfront irrespective of what
  the stock market or stock will do. Our profit is
  made the moment they buy the Option. And the
  money is in our account by the next trading day.
  We then sit and wait until the third Friday of
  the month to see whether the stock closes above
  the Strike Price or below.
• If the stock makes strike and closes above the
  agreed price, then we sell the stock to the
  option buyer, we receive back into our account
  the agreed price that we sold the stock for,
  plus the income we generated from Day 1 and then
  use the money and the profit to buy new stock
  which we then write an Option on and sell that to
  another speculator, banking the income from that
  transaction, our profit, the very next trading
  day. Then we wait until the third Friday of the
  month and the cycle begins again. Straight
  forward.
• When I say, write an Option, its not like you
  have to handwrite the contract yourself. We use
  online brokers to implement this for us through
  their platforms and just change the relevant
  details like stock name, prices and so on. It is
  a few keystrokes on a computer kind of writing.
• Like I say, 10 clicks in 10 minutes and once your
  order goes into the market, you have generated
  your income.
• If the stock doesnt make strike at the end of
  the month, then we keep the stock and remember,
  the premium originally received, then we are free
  to sell an Option on the existing stock again
  the very next trading day. Saves us a brokerage
  fee having to buy new stock!
• The speculator who bought our Option contract
  might not, and usually will not, hold onto the
  Option until the third Friday in the month. They
  will sell it to someone for a profit or loss
  depending on what the stock does during the
  month, then look for new Option contracts to
  purchase.
• The buyer of our Option will quite likely sell it
  on themselves and this will go on throughout the
  month until the third Friday. This is where the
  real gamblers might step in and try to make the
  big killing. It can also be where the newbies get
  cleaned out! You, meanwhile,
• dont have a care in the world because whether
  the stock makes strike, goes beyond or falls
  well below, you have made your income and
  cashflow already from day 1.

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The Stock Value Falls Now What? If the stock
you hold falls and doesnt make strike then the
Option buyer doesnt have to buy the stock. Yes,
you now have 100 shares of a stock that is worth
possibly much less than what you originally
bought it for but we cover ourselves against that
being a catastrophic loss simply by buying
blue-chip stocks. We dont buy stock that we
suspect might fall beyond a few dollars or so.
Of course, crashes happen, but that is why the
right education, our education includes
discovering how to read the market trends and
select the better stocks. No guarantees but we
can minimise the risk considerably through
applying the education we offer. Worst case
scenario you have 100 shares of stock that, in
time, will not only claw back whatever was lost
but, if the last 100 years of trading is anything
to go by and it is, they will increase in value.
You only lose money if you sell the stock for
less than you bought it for and even then,
depending on how much it made for you from the
covered calls while you owned it, you could still
be in front. Lets Look At An Example We will
call a Stock ABC, and we need to create an Option
contract at an agreed price, called a Strike
Price. This means that we agree as owners of the
stock to sell the stock at a future date, at the
agreed price. If the stock reaches the agreed
price it is known as making strike. The
future date on the US market is always the
third Friday of each month. ABC is trading at
20.00 We will create an Option at a Strike
Price of 20.00. The buyer of our option is
willing to pay us 1.00 per share for the right
to be able to buy our stock from today, till the
third Friday at the agreed price of 20 per
share. Two things can happen at the end of the
contract period. The stock will either close
above the 20.00 agreed price or below. What the
buyer agrees to is this if, at the end of the
contract period, the stock closes at or above
the Strike Price, they are happy to buy the
stock from us at the agreed price. So if ABC
closes at 20.25, the buyer takes the stock from
us and pays us 20.00 per stock as per the
agreed contract in place. Even if the stock
closes at 20.00 or 20.01, the buyer must take
the stock from us and pay us back 20.00 per
stock. This is done automatically by the broker
and we dont need to do anything at the end of
the month, its all done for us. If the stock
closes below the agreed price, (the Strike Price
19.99 or lower) on expiry, the contract expires
worthless. We keep the stock, we keep the
premium that was paid to us from Day 1 (1 per
share so 100 in total) and we now create a new
contract for the next month on the same stock
that we hold.
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Its that simple. At the end of the month, the
stock will either close above or below the
agreed Strike Price. We will either sell the
stock at the end of the month or hold it. We will
either create a new contract on existing stock
we own and hold, or create a new contract on new
stock we purchase if we were exercised. Exercise
d means, the stock is taken from us and handed
over to the option buyer. Looking at the example
above, if the option buyer pays me upfront 1.00
per share in income, what is my break-even? I
purchase the stock for 20 and receive 1.00 in
income, my breakeven is 19.00. This means we
have purchased a stock at a discounted
price compared to the average speculator who
purchases stocks on the market at retail. It is
the discounted price that banks and stockbrokers
pay nearly every time they go into the market.
You are now playing the same game. We now have a
1.00 buffer on our capital to allow the stock to
move and still be in profit. So if this stock
during the month drops down to 19, I am still
ahead or at the very least, I have not lost any
money because I can sell the stock at 19 and I
still have the 1 per share paid for the Option,
so I end up with the same 20 per share I started
with. Hence, I break even. Lets look at the
downside. At the end of the month, lets say my
stock that I bought has now closed at 18.50.
This is now below my break even. Have I lost
anything? No, because I havent sold the stock.
I still have the 1.00 paid to me which is
liquid, physical cash, income. After expiry,
being the third Friday, what do I do on a stock
that has dropped? I go back into the stock
market on Monday and create another contract for
the new month, earning us another income
irrespective of the price of the stock. What you
need to understand is this because the stock has
closed on expiry at 18.50, it does not
automatically mean that during the next months
contracts the stock will go below this price. It
could go up. It could go down. It could stay the
same. Do we know what the stock will do? NO. Did
we receive an income in the first month? YES. Do
we receive an income now in the second month
from creating a new contract even when the stock
is now at 18.50? Absolutely. We cannot predict
what the stock and the market will do, Im not
here to tell you I can predict, I cant. All I
know is I can earn income from the stock
irrespective which way it will trade during the
month. Some will say where do you create the next
months contract if the stock is 18.50. In our
education, we have a formula that I have been
applying since 1999 that I provide to my members
all around the world. So we want to create a new
contract, we apply the formula to earn more
income even if the stock is below the 19
break-even cost that we have. Its
Brilliant. This Is Not Guessing, Gambling Or
Speculating! Stocks fluctuate every day, they go
up and down, and as we dont trade direction we
are not guessing where they will be at the end of
the contract. We are not gambling whether they
will be up or down on the third Friday of the
month. We are not speculating that we can make a
killing or not. We are looking at the income
potential of the stock because we let the stock
market do what it wants to every day. In essence,
the strategy is very straightforward with great
opportunities. The best part about this strategy
is that you can get into the market utilizing our
phenomenal strategy with as little as 2,000
5,000 USD in the case of our example where ABC
Stock is selling at 20 a
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share (plus brokerage fees). The return of 2 or
4 is the same whether you buy 2,000, 20,000,
or 200,000. Our ABC Stock made us 5 on our
investment. (5 of 20 is 1). Had we bought
200,000 of stock, or twenty contracts of 100
shares per contract, we would still have made 5,
which is 10,000. Think about the potential this
has for you if you really stepped up and took
action and believed in yourself. But if I said
to you right now, with 2,000, lets get into the
market, get your feet wet and discover the
strategy, build a solid foundation and build your
knowledge so that you could build your
skyscraper this would certainly be of interest
to you. If you had 10,000 and you potentially
earned yourself a 3 return, thats 300 a month.
Now, weve got to take brokerage out, as this is
a cost of doing business, however, brokerage is
only a small fee per transaction of 15 USD to
buy the stock and 10 to create the contract
minimum. Lets just say 300 a month. Can that
potentially help you pay off your home loan
quicker or help build a property portfolio?
Absolutely it can! Its not going to make you
rich, allow you to retire in a years time or
double your money. Im not here to make these
claims, its not possible. Im here to educate
you on how to earn a small return upfront on
your capital from the stock market irrespective
of the stock markets movements during the month.
As I say, slow and steady wins the race. It is a
3 5 year plan. Can you see the
potential of the stock investment strategy that I
have just presented you with above? Let me go
into even more detail and examples in the next
blog to help you understand it better.