100 Shares Changes Everything: The Income Stream Beginners Don't Know About
Why owning 100 shares guarantees you'll earn a profit.
Hey there,
Did you know there are money-making opportunities you can’t access unless you own 100 shares of a company’s stock?
Yeah, there are levels to investing.
Most investors think profits come from two sources: equity increases and dividends. But once you own 100 shares of a company, you open the door to a third stream of income.
Let’s talk about it…
Why 100 Shares Matter
When you own 100 shares of a stock, you can essentially rent them to other investors.
It’s called selling a covered call, and it’s almost a guaranteed profit strategy, allowing you to earn money regardless of whether the stock price moves up, down, or sideways.
How Covered Calls Actually Work
Here’s the simplest way to think about it:
Let's say Amazon's stock is trading at $240 on a Monday. Another investor will pay you cash today if you agree to sell your 100 shares to them at $250 by Friday.
If the stock never reaches $250, you keep:
Your shares
The cash you were paid upfront
If it does reach $250, you sell your shares for a $1,000 profit ($250 - $240 = $10 per share × 100 shares), and you still keep the cash you were paid upfront.
Either way, you get paid.
Why This Matters for You
Owning 100 shares means you’re no longer an investor waiting on prices to move. You can generate income whenever you want.
This is how long-term investors earn consistent monthly income.
The Takeaway
If you're just starting your investing journey and don't have 100 shares of a strong company yet, that's okay. It will happen if you stay consistent.
You just need to know that there are levels to investing—and owning 100 shares is a milestone that most seasoned investors don't openly talk about.
When you reach it, you can get wealthier, faster.
Keep learning,
✍️ Isaiah from Earn Out Loud
P.S. If you want to learn more about this strategy, read:
In those articles, I walk you through the step-by-step process of using the Covered Call strategy, just as I’ve done for months.
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