09-25-2013, 06:05 PM
Welcome to the forum hendi_alex! Very glad to have you join us, and I second Tom's sentiment that, marginal fit or otherwise, I hope you find it worthwhile to stay.
I've been considering starting a thread or area devoted to discussing options strategies, and it sounds like you could provide a lot of useful experience. I know a lot of dividend investors use covered calls to improve their returns. I've always been intrigued by the idea, but ultimately afraid of it. I'm sure the math supports the approach (at least if executed properly), but I guess I'm attached to the idea of holding my DG stocks for decades, and would be nervous or upset at the prospect of having them called away.
Cash-secured puts, on the other hand, seem to fit my personality perfectly. As long as you have the cash to make a purchase at a price that you'd be happy with, you can get paid to wait for that price to arrive, if it ever does.
Would love to hear more details about your strategy. How do you choose which stocks to sell covered calls on? And how do you choose which calls to sell?
I've been considering starting a thread or area devoted to discussing options strategies, and it sounds like you could provide a lot of useful experience. I know a lot of dividend investors use covered calls to improve their returns. I've always been intrigued by the idea, but ultimately afraid of it. I'm sure the math supports the approach (at least if executed properly), but I guess I'm attached to the idea of holding my DG stocks for decades, and would be nervous or upset at the prospect of having them called away.
Cash-secured puts, on the other hand, seem to fit my personality perfectly. As long as you have the cash to make a purchase at a price that you'd be happy with, you can get paid to wait for that price to arrive, if it ever does.
Would love to hear more details about your strategy. How do you choose which stocks to sell covered calls on? And how do you choose which calls to sell?