Last week I talked about how you can get a 4.9% interest on uninvested cash in your Robinhood.
Sounded too good to be true to me, so I ran the numbers. Of course, it turned out that you have to have a Robinhood “gold” account to get this 4.9% interest, and that costs money. After doing all the math, I uncovered that you’d have to have more than $100,000 in your account to actually generate something close to that interest rate.
But that got me thinking of a way to beat Robinhood’s return without paying for its premium gold membership…
And how we can create a risk-free trade while interest rates are high.
Using Options to Create Today’s Risk-Free Trades
For anyone who missed last week’s post about how to beat Robinhood’s 4.9% return, the answer was iShares 0-3 Month Treasury Bond ETF (SGOV). That’s a bond ETF that’s paying out about 5.28% annualized right now. In fact, as of this week, SGOV declared a $0.44 cash dividend per share.
If you didn’t see last week’s video on this, then check out this post for all the details.
But back to today’s risk-free trade. If all remains the same, this would amount to a $10,000 account being worth $10,528 in a year. That’s $528 of risk-free income that could be used for anything.
And today, we’re going to use it to create a risk-free trade over the next year.
But because I’m me, I can’t just show you one trade… I’m bringing you three trades. All the details are in this week’s video below. Just give it a click and let’s get to it!
To your continued success,
Tom Gentile
America’s #1 Pattern Trader
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