You'll need to find a stock or ETF you feel comfortable with... and some generate only 3% or 4% monthly, AGQ generates more than 8% monthly because it's a 2X ETF for silver and silver is already volatile... but, for every 100 shares, you can write one call and take in the premiums each month... for AGQ last week I wrote the 215 at the money calls and some September 200 calls, they pay more but I'll have to subtract the 15 points, but still a very generous premium... I wrote the Sept. 200 call for 32.50, so even if I give back 15 points, I still clear 17.50 for the two months... I decided to do the Sept only because I wanted to have a deeper in the money call just in case and the Sept calls still had enough time premium left in it even though it was already 15 points in the money... it's a comfortable position... and when you're doing 1000 shares, that's ten calls, 2000 shares is 20 calls, the money then becomes more serious... only 5 calls each is $50K for the next two months...
If you decide, let me know what you did, I'll follow it along with you... I'm surprised more people don't do it, it's so simple, but maybe people prefer to risk the money for a possible rally, I don't know... that's easily understandable, I've done that for many years, I still do with the SP's, but I'm beginning to rethink it... I really like the free time I now have to do other things during the day... today I went for a two hour bike ride, great exercise, I had no idea what silver was doing, nor did I care... LOL!!!
GZ |
