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Strategies & Market Trends : Calls and Puts for Income

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To: Delfino R Zavala who wrote (5792)9/3/2013 10:21:51 AM
From: robert b furman  Read Replies (1) of 5891
 
Hi Delfino,

I've only sold naked puts on blue chip with a nice dividend: Amat and Intc

They both are so big - a takeover is not much of a consideration.

If I owned some stock - I'd then consider selling calls.If you lose the stock - you can most often buy it back on the next swing.

I've eased into selling puts with the intent of buying the stock at a below market price .

It has not yielded me any stock,but I've really learned to like selling puts.

The two stocks I've selected are range bound and traveling sideways for years.

My biggest fear is the stocks go up and I lose my honey hole.

If the stocks go down ,I buy them and then enjoy the continuous cash flow of the company through recieving the dividend.

I think it is one of the best kept secrets in Wall Street and it provides large income if you have the cash to play the game.

Took me 30 years to fall into the awareness.

Some day the sector will get hot and I'll be wishing I had bought the stock and not just made money - NAH LOL

Bob
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