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Investment companies and banks alike all gain from holding assets. As you should already know, an options contract is an agreement to buy or sell the underlying security at a specified price in exchange for a premium. Ever wonder who is selling you these contracts? A market maker. Any asset holder can act as a market maker because they have an Asset that is in demand. They can easily negotiate to sell the security at a specific price. The option buyer gets the right to buy or sell at the strike price and the Option maker receives a premium for the contract. In addition of the option is out of the money by the strike date the maker can keep the  premium without making any stock transactions. And herein lies the secrets of the markwt makers.

As long as they hold assets that others want, or the cash to purchase those assets and the intent to purchase them, the makers can always earn a premium on the assets they hold. Now of course as with any strategy there comes risk. However for anyone tracking the price movement of a particular company you begin to get the hang of what the price should be relative to the current list price.

Now to the task at hand making a passive income. Using the same strategy that these asset holding firms use you too can make a passive income on your investments and even your cash - yes your cash will make money by being in the right place.

All sounds great but how you say! 

By holding assets or the cash to buy assets.
By holding 100 shares of stock or the cash to buy 100 shares of stock at a specified price, you can earn a premium the same way the Wall Street moguls do. 

Now it is very important to pick a company that has great value in the long term outlook of the overall market. Usually the stocks in the NASDAQ 100, DOW JONES 30, or the vast S&P 500 are all good plays as they are the stocks that the pros put on top of the list.

I would advise to stay away from the lower weighted ones because they are always at risk of being delisted however to each his own. The company or companies you choose will mean everything. Be sure to choose companies with overall good outlook with many positive reasons to chose the company and an understanding of risks That will create a negative investor sentiment For that particular company.

Market makers are always only looking to hold the most valuable assets and get rid of the rest. Even when an investment bank underwrites a bad company they will sell off its stock for fear of losses resulting from holding. They would then proceed to put their money in a place they feel it is a worth while investment. For a regular person without 100k to invest, this could be any of the top companies  of the major indices previously mentioned.