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Non-Tech : QQQ - Nasdaq 100 Trust
QQQ 608.40-2.0%4:00 PM EST
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To: RoseCampion who wrote (328)6/13/2000 8:50:00 AM
From: Cosmo Daisey   of 840
 
Rose,
I have positioned the accounts I manage in QQQ and write calls. The account holders are looking for income but I must manage the underlying value the best that I can. I never worry about being called, never. My concern is to maintain their account value. My goal is 3-4 percent income a month. To accomplish this I buy QQQ on a down day and write on a up day. For example a new account in May I positioned @ 92 and wrote ATM @ 96 a few days later @ $6. If called the yield would be 10% and 6.5% if not. At options expiration in June the price was under my purchase price, I waited rather than write below the cost basis. I subsequently wrote July 96 @ $6. If I miss a month writing I can still meet the goal of 3-4% and if not I use the income as a reserve or to position more QQQ and limit my account holders to 3% withdrawl. I don't try to micro-manage these account by buying the calls back on a dip and writing again on an upturn because of time constraints but I sometimes do that with my own accounts. If you believe in the stock market as an investment vehicle there is no better way to generate income than with this strategy that I have found. A $300,000 account can generate $100,000 a year income for the owner, set aside a reserve and pay management fees. The average retirement account at retirement time is about $200,000 and an annual income of $72,000 is usually much more than the retiree made as a worker.
Cosmo
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