I call this little-known strategy a "heist."
That's because when you use it, you're almost "stealing" from Wall Street's profits.
To understand what I mean, think about how a casino works. Every day, people come in through the doors seeking that one big payout. Sure, some people hit the jackpot once in a while. Most are lucky to simply break even or only lose a little bit, while others completely lose their shirt.
Either way, the house always wins.
That's exactly how the derivatives market works on Wall Street. This market is like a financial gambling casino where risk-loving speculators come to place bets. And it's for this very reason that it's one of Wall Street's main sources of income.
You see, Wall Street acts as the casino operator in the derivatives market, collecting the money being lost on these bets.
But what most ordinary investors don't realize is that in this market, there are strategies that let you take on the role of the casino owner. In other words, it allows you to collect the money being lost instead of Wall Street.
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This strategy is used by many private investors who've caught on to this secret. In fact, my Income Trader subscribers and I use it to generate extra income each and every week.
On Wall Street, the strategy is called "selling put options."
Don't worry that this is an options strategy. It's completely unlike any options technique you may have ever tried in the past.
What gives options such a bad reputation are the impulsive speculators who lose money on them most of the time. And it's that money that Wall Street consistently collects with this options technique... the same one we use.
You see, in the options world, for every winner, there's a loser. It's a "zero-sum game," in other words. And according to a study by the Chicago Mercantile Exchange (CME), 94% of the "put options" that investors buy to speculate with end up losing them money.
It's no wonder Wall Street loves being the "casino owner" in this market -- it makes money from it the vast majority of the time. And that is also the role my Income Trader subscribers and I choose to play, essentially stepping in and "stealing" profits from the house.
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You might be asking yourself, "Who would take the other side of this bet?" After all, someone is paying money upfront for options that expire worthless the majority of the time.
The answer is simple: There are a lot of investors that make poor financial bets.