IncoCap does not engage in funds management. Our objective is to teach you our method so that you can generate predictable monthly income from your own savings.
How much money do I need to make this strategy work?
We teach you how to generate between 1% – 4% per month on your savings. So if you have $100,000 to invest you can expect to generate between $1,000 – $4,000 per month in income.
Does this strategy work outside of the U.S sharemarket?
Most developed countries with well established share markets will also have what’s called a derivatives market which can provide you with access to options trading.
We deliberately use and encourage others to use only the U.S. share market since it has certain characteristics which are conducive to this type of strategy, such as high trading volume and better liquidity.
Importantly, you don’t need to be a U.S. resident to access this market so it can be done from anywhere so long as you have a stable internet connection.
How much time is involved to generate monthly income using this strategy once established?
Normally our strategy is low touch meaning you only need to invest a few hours at the beginning of each option month.
When the occasion arises where you do need to manage retained stocks, you may need to take a few minutes each day no more, to continue to generate predictable monthly income.
Are there anymore courses offered by IncoCap?
Formally, we only offer one product which is a one day virtual seminar.
On a case by case basis we sometimes offer additional support for those who would like it, on the basis that they have attended and applied the learnings from the seminar.
What is a Covered Call?
A covered call is a position that consists of shares of a stock and a call option on that underlying stock.
This means to create a position you need to first buy the stock of a company you have selected using the criteria we teach and then sell the covered call. In practice these steps are completed simultaneously with the click of a button.
The call option gives the buyer (the person on the other side of your transaction) the option to buy your stock (which you own) at a predetermined price (the strike price) in the future.
What is the risk associated with writing Covered Calls?
The only way you can permanently lose your capital is if the underlying company of the stock you own were to go broke bringing the value of your shares to zero. We only buy large scale blue chip companies to helps mitigate this risk.
The value of your shares will most certainly go up and down with the normal fluctuations of the stock market. We do not think about this as a significant risk to our strategy since we are focused on cash generation which can be achieved in up, down and sideways markets.
Importantly, you need to be comfortable with measuring your success on the ability to generate cash that you can spend each month and not the overall ‘value’ of your portfolio which naturally fluctuates.
What are the tax implications of trading in the U.S if I’m a tax resident of another country?
We are not tax advisors and are not qualified to give you tax advice since each persons situation is different.
You will need to seek appropriate advice from a qualified tax specialist in your country of residence as to how foreign income will be treated from a tax perspective.