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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 672.04-1.7%Nov 13 4:00 PM EST
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To: Casaubon who wrote (9681)4/4/1999 3:53:00 PM
From: Gersh Avery  Read Replies (1) of 99985
 
Hi Casaubon

Sorry that it took me this long to get back to you.

I am not in the same position that you are. I don't have the method available to shift any of my 401k funds over to IRA. If I did, the first thing that I would be doing would be to find a brokerage that would allow me to sell covered calls in a IRA.

I've been looking real hard at the CC method. It looks to me like I could expect to see about 6% per month return. That's 72% annual return.

With a 6% monthly return starting with $50k in the account you could:

Leave all of the principal to accumulate for the first eighteen months and then be able to pull out $6k per month without touching the principal.

Or just withdraw 50% of the gain each month after the first eighteen months. This would start you out with a $3k per month "paycheck" which would grow at a rate of 3% per month (36% annual COL adjustment <G>)

To take a good look at this method check out this subject:

#Subject-12574

I'm currently working over a method by way of paper trades. So far it looks like a monthly return of ~12%!

The 401k that I trade is an employee benefit plan. To do any changes in the account can take as long as three days to transact. Because of the time lag, donalds class buy/sell triggers are of special interest to me with their three day time frames.

As I said with every statement above, these are the things that I would do if I currently could. To determine if the above method makes sense for you, you will need to do your own groundwork.

Gersh
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