Welcome to the Chuck Hughes Website!
Greetings and welcome to the ChuckHughes.com website. I want to take this opportunity to introduce myself and tell you a little bit about my trading programs. I have been trading stocks, options, currencies and commodities for more than 24 years.
I developed simple trend following systems that trade with the trend. When the price trend is up we buy and when the price trend is down we sell short. Now even though this concept sounds very simple it really works.
When I started trading back in 1984 I had young children and a mortgage and could only start with a $4,600 trading account.
But in my first two years of trading I made over $460,000 in profits using my simple trend systems. And over the past 24 years I have made over 4ï¿½ million dollars in actual profits proving that trend following really does work.
Click here to download copies of my tax returns and brokerage statements documenting this 4ï¿½ million dollars of trading profits.
These profits have provided me and my family with financial security and allowed me to retire from my airline pilot job at age 48. I can tell you from experience that financial independence is a great feeling!
Now we all know that the markets have been very volatile lately but this increased volatility has created some great trading opportunities. My trend following programs have been taking full advantage of this increased volatility and have been on the right side of the trend in global markets. In my 24 years of trading experience there has never been a better time to profit from market trends than now.
I recommended going short most of the global markets to my advisory service members in August of 2008 and stayed short most markets until mid March of 2009 when we reversed and went long most markets. This produced record profits for my advisory service members.
So to sum things up, at this stage in my life I really want help others succeed as I have. My goal is to help my members duplicate my success and achieve their financial goals.
I'm really excited about the profit opportunities currently available and I want to personally invityou to join us in our quest to convert these market trends into trading profits.
I wish you all the best and hope you have a successful trading experience.
Thanks for Visiting,
What is Working With Current Market Conditions
I have found the cash dividend strategy to be the best approach for current market conditions. The cash dividend strategy generates cash income from the sale of covered options. Many investors are not familiar with the concept of selling option premium to generate cash income. When you sell an option, cash is immediately credited to your brokerage account.
Selling options to generate cash dividends is very different than the traditional stock dividend strategy which requires you to own a stock for a year in order to receive a 4 percent or 5 percent annual dividend yield. Most stocks don't even pay a 4 percent or 5 percent annual dividend. When you sell options, you can get paid up to a 20 percent to 30 percent cash dividend up front when the option is sold. You get to keep this cash dividend regardless of the price movement of the underlying stock.
Selling covered options can realistically produce a 20 percent to 30 percent or higher cash dividend that is instantly credited to your brokerage account when the option is sold. The key to selling option premium to generate cash income is to make sure the option you sell is covered.
There are two ways to implement the cash dividend strategy:
- Purchase stock and sell a call option
- Purchase a call option and sell a call option with a higher strike price to create a
spread (put options can also be used)
Limited Risk Strategy
With both methods the short option is covered by owning the stock or owning a call option. Because the short option is covered this is a limited risk strategy. Receiving a 20 percent to 30 percent cash dividend reduces risk considerably. The cash dividend strategy incurs less risk than owning a stock or owning an option.
One of the big advantages of the cash dividend strategy is that it can be profitable if the underlying stock increases in price, remains flat or decreases in price. The cash dividend strategy can be traded in smaller trading accounts by using the second method mentioned above of buying an option and selling an option to create a spread.
Averaging More than $160,000 in Cash Dividends Per Month
Over the past three years I have collected more than 5.7 million dollars in cash dividends. This averages out to more than $160,000 in cash income per month.
Click here to download copies of my brokerage account confirmations showing the call and put options I sold to generate this cash income.
The cash dividend strategy incurs considerably less risk than other trading strategies and is ideal for current market conditions. The large up front cash dividend you receive can result in a high percentage of winning trades even if your market timing is not very accurate. I trade the cash dividend strategy in eight different trading accounts most of which are retirement accounts.
Average Cash Dividend of 41.7 percent
The copy of the brokerage account Profit/Loss Report below for one of my eight trading accounts shows my current cash dividend trades for that account. This account had a $311,878 starting balance when I initiated the current trades. I received a total of $130,060 in cash dividends for the current trades resulting in an average cash dividend of 41.7 percent for the portfolio. I reinvested the $130,060 in cash dividends I received in additional cash dividend trades allowing me to compound my trading results. This portfolio is widely diversified across many different industry groups. Even if every one of the underlying stocks in this portfolio declines sharply I can still realize a good return for the portfolio.
The average trade length for the trades in this portfolio is 4.3 months. I normally rollover my cash dividend trades at option expiration and initiate new trades allowing me to compound my trading profits. All of the trades in this portfolio are currently showing a net profit for the spread. Bearish cash dividend trades can also established by using put options. I traded bearish cash dividend trades during the last bear market in the fall and winter of 2008.
I also make cash dividend trade recommendations through my advisory services. There are currently a total of 58 cash dividend trade recommendations. 57 of these 58 trade recommendations are currently showing a net profit for the spread resulting in 98 percent accuracy.
On balance the cash dividend strategy strikes a good balance between risk and reward. When you receive up to a 20 percent to 30 percent or even higher cash dividend it reduces risk substantially and can provide consistent returns during any type of market. The high accuracy of the strategy demonstrates the versatility of the cash dividend strategy in producing profits during difficult market conditions.
Cash Dividend Trade Portfolio
Advisory Service Profit Results Since 1999
Click here to view our Privacy
Risk and suitability notice: although Chuck uses his best efforts to provide the most successful trading methods and recommendations, he cannot guarantee your future profitability. There is a risk of loss when investing in stocks or options. Past results are not necessarily indicative of future results. Options are not suitable for all investors. An investor's objectives, time horizon, liquidity needs and tolerance for risk should be considered. It is up to each individual to determine his own financial suitability. Some examples contained herein are hypothetical or simulated, which means that they are done on paper based on market prices but without actual money being invested. Simulated performance results have certain inherent limitations. Since the trades have not actually been executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. There is a risk of loss in securities and options trading.