SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : The Critical Investing Workshop
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sully- who wrote (29388)8/17/2000 10:18:57 PM
From: Clappy  Read Replies (2) of 35685
 
Thanks Tim,

A few questions:

1) How do you buy back if you already used that money for your monthly income?

You have to sell something else or hope you have dry powder.

2) In EXTR's case you may have to roll out for several months or longer.
You still need monthly income.
What do you do?

I understand that you could diversify with several stocks, but many of the high volatile stocks went down and came back up high.

How do you pay your monthly bills? You are still rolling out and out and out without gaining any income.

I guess this method requires a lot of cash reserves or secure stocks backing them during the tough months.
Keeping this money in a low risk low reward stock or CD would take away from the overall percentage of gains.

In other words writing cc's on a safe stock that is not jumping up and down may only net you 3% per month on your cc.
But then you don't need to keep your dry powder in a CD or money market as you play the cc game on the volatile stocks.

No?

-Clappy
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News