What's Your Plan ?

[Robandcindy2]

(04-14-2014, 09:14 AM)hendi_alex Wrote: Do you mean a book? I haven't read an in depth publication, but rather pulled from many sources via the internet. My methods are very amateurish and probably shouldn't work, but for the past couple of years, they have met my objectives of generating a target amount of cash flow over a certain time period. You would probably get a good answer to your question if posted on the Income Investing board at Investor Village.

I would suggest, that just starting out, only sell covered calls, never naked calls. Only sell puts for shares that you 100% would be o.k. with owning. Avoid buying calls or puts until you gain confidence in selling each. The least speculative form of options is selling covered calls or selling cash secured puts. I mostly use options to sell calls to juice the cash flow of an existing position, covered call. Occasionally I'll sell puts in an effort to buy a stock of interest at a lower price than is currently available. I've dabbed with buying calls, but thus far have had no degree of success, basically coming out even or slightly down over all.

http://premium.investorvillage.com/smbd....=6536&pt=m

Alex,

Thanks! The guy I'm flying with this month sells covered calls to the tune of $12,000 a year. Really an amazing "insurance" process if you keep it safe sell for the price you'd be comfortable getting for your shares.

I'll check out that link. I saw the Talking Heads on CNBC offering a guide but wasn't sure if it was the same thing. Thanks again.