Get a double-digit income on blue-chips

With the next 12 months unlikely to be as spectacular for stocks as the last 12 months,now looks like a good time to focus on income rather than capital growth. And one strategy, writing 'covered calls', can help you multiply your income massively. Theo Casey explains.

A year has passed since the FTSE 100 bottomed. On 6 March 2009, when the blue-chip index fell as low as 3,530, few pundits expected a strong recovery. Yet the market has jumped 58% since then.

However, the next 12 months are unlikely to be as spectacular. Fiscal stimulus is ending around the world and that's likely to rattle markets, even if it doesn't send them into another tail-spin. That's why now looks like a good time to focus on income rather than capital growth. And one strategy, writing 'covered calls', can help you multiply your income massively.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Theo Casey

Theo is a former financial writer and editor, having written for reputable titles such as Euromoney Institutional Investor and Redwood Publishing. He has also appeared on-screen with Al Jazeera, BBC and CNBC and on MoneyWeek Theo covered funds, share tips and stockmarkets. He also edited the country's oldest newsletter with Lord Rees-Mogg for four years. Theo now runs his own content marketing agency for financial companies, and he is a seasoned CISI-qualified investment adviser.