Get Paid to Buy Stock
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, we finally got a green week, as all is right with the world.
Will we trend up?
Will we reach new lows?
Many will predict,
But nobody knows.
But enough mumbo jumbo. This is:
Get Paid to Buy Stock
Does that sound too good to be true? Many things do. But it’s not. It is incredibly easy to get paid to buy stock.
Let’s say you would like to buy UBER stock at $70 per share. It was hovering over $70 per share this week. You could have said on Monday, “Self, gee golly you’re handsome. You probably have great genes. Also, if UBER drops to $70 by Friday, I’d like to buy 100 shares.”
Well, you simply SELL what’s known as a PUT option for one week out.
This is a real, live example from this Monday, 3/17/25, when the price of UBER was at $73.58. You could have sold one option expiring in four days on Friday, 3/21/25, at $70 for $0.34.
Friday, 3/21/25, seems like an absolutely perfect date. Maybe the best day ever. Anyway…
One contract is 100 shares, so this means you get paid $34 immediately.
From here, you have two options:
1. The stock drops to $70 by Friday and you automatically buy 100 shares.
or
2. It doesn’t.
If the stock drops, GREAT! You bought UBER at the price you were hoping for.
If the stock doesn’t drop, GREAT! You got money for nothing.
UBER was above $70 this Friday, so this example would have been $34 profit with no stock executed. Risking capital for only 4 days is an annualized return of over 44%. Quite a gift that money would have been this week. Almost the best gift you can get. Almost.
