There’s no doubt that volatility has returned with a vengeance to the markets.
Whipsaws so far in August have been tough to bear. Each day brings new moves up and down, spanning hundreds of points.
Last week I talked about “cash codes” and how you can use them to get paid cash upfront in exchange for your desire to buy any stock you want at a price of your choosing. Well, the August volatility is actually good for profiting off the cash codes.
And today at 1 p.m. (ET), I’m hosting a live, free event called the Cash Codes Summit, where I’ll dive deeper into how you can collect extra income using the cash codes. With how shaky the markets have been, I urge you to attend and see how my strategy could help protect and grow your nest egg.
Now, I bring the cash codes up because investors can gauge the level of volatility in the markets by looking at the VIX, which is an index that measures the amount of fear or complacency that currently exists. Click here for the current chart of the VIX. I’ll explain more about why this matters in a moment.
It’s important to remember that when the markets rationally chug along and move higher, complacency grows —volatility shrinks. This keeps the VIX on the lower end of its spectrum. And when market’s erratic — especially when dips are often occurring — the VIX will spike.
This makes stock market prices and the VIX move inversely to each other.
Cash Codes Thrive in Volatility
It’s important to understand the VIX. We can use it as a sort of timing model to alert us to the best times to engage the cash codes. And when volatility jumps (like it is now), the cash codes pay out higher sums of cash.
It’s a sight to behold. My Instant Income Alert readers are able to pocket even more upfront income when the VIX spikes.
But why do the cash codes pay more when volatility spikes?
Well, since volatility is just one of a handful of factors that help decide how much the cash codes pay out, it is intuitive to believe that when volatility heats up (like it is now), then investors receive more money when using the cash codes, and vice versa.
The Proof is in the Numbers
I mentioned on Friday that I had an interest in buying shares of Intel Corp (INTC) at $40 per share.
Since it was currently trading at $47, I couldn’t buy it at my $40 price tag. So I showed how engaging the cash codes could pay me varying sums of cash.
Now with volatility spiking, cash codes can pay out even higher sums.
Looking back at the VIX link above, its level jumped from a low reading of 12% right at the end of July to a high of 25% just a week later. That’s over a 100% jump in volatility.
Since each stock has its own volatility component, it will typically move in the same direction as the VIX. Only at varying degrees.
During that same week, Intel’s volatility spiked from a low of 22% to a high of 32%.
Using the payout of $102 for the January 2020 timeframe I highlighted in Friday’s article, the payout increased from $102 to $185. That jump in Intel’s volatility by ten points upped the payout by roughly 81% for the cash codes amount. And that’s money going directly into our pockets.
Can you see why we like when things get erratic? It’s like receiving an unexpected pay raise.
Knowing the best times to use the cash codes can make a huge difference in your wallet, and your overall wealth.
I’ve been using the cash codes for almost 30 years now. They are a key component to the success of my strategy, which I’ve been sharing with readers since late 2008. The results have been fantastic.
I would love to show you how cash codes can work for you.
So, join me at the Cash Codes Summit today at 1 p.m. (ET). And if you can’t make it then, be sure to tune into the rebroadcast later at 7 p.m. (ET). What I plan to during the event could be life changing.
Until next time…