So, as we mentioned in the last post, you will receive the rental premium into your account straight away (or the very next day). This is yours to keep, no questions asked. However, we do own the stocks, so we need to look at what can happen to the price of XYZ between now and the end of the rental period.

There are generally only three things that can happen to the price of XYZ:
Scenario 1: Stock Price stays the same
Scenario 2: Stock Price goes up
Scenario 3: Stock Price goes down

Let’s look at each scenario separately…

Scenario 1: Stock Price stays the same
This is what we term ‘trending sideways’. When the price continually goes up or down, but only by a small amount. Lets say that by the end of the rental period, the stock price is $20.10 ie below the rental price of $20.50. We have already received the rental premium from when we first started the trade and we still own the 200 XYZ stocks. So we simply rent them out again and receive another premium for the next 4 weeks. If the stock continues to stay the same then we just do it over and over again. Month after month, you will receive money in your account. As easy as that! If you received the same premium each time (it will change) that would be a 6% return every month.

Normally, when the stockmarket is flat and not moving in either direction, it’s very difficult to make money. However, the Renting Stocks strategy is a great way to generate a regular income – when the market is flat.

To find out more about this incredible strategy, please click on the link below, download the E Books and you can get started straight away.

Renting US Stocks Strategy

Renting Australian Shares Strategy

Remember, this strategy can be done on any market!