Passive Income Boosters

Here are 3 passive income “boosting” investments/strategies we also suggest you consider (but carefully!):

1. Hybrids

2. Writing covered call options

3. Writing covered put options

We will explain in detail the very specific situations and ways that the above investments and strategies can be used, with a relatively passive approach, to give your income a real boost.

They are not without their risks and as such require a very through understanding before utilising yourself.

With hybrids in particular you need to be very selective as to what you buy and when you buy, as well as how much of your portfolio you should allocate towards it and what part of your portfolio you should allocate it to.

We have included some educational resources on hybrids as part of our How to Invest in Bonds section and a recent blog post on The Role of Hybrids, but will be writing more about hybrids in the near future.

Writing covered call options and writing covered put options are two strategies which although are not completely passive as such, can be still good strategies to boost an underlying passing income stream without being overly time-consuming.

Here are two articles from the ASX website which will give you a brief introduction to these two strategies:

Covered write

Short Put

We will explain these two strategies, and exactly when and how we use them, in more detail later on as our website develops.

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