To: Clappy who wrote (6259 ) 3/6/2000 8:49:00 PM From: Voltaire Read Replies (4) | Respond to of 35685
THE BEANO FAMILY chapter 3 Well, the last time we looked, the Beano brothers, Bebo and Bobo had made the fateful decision to determine their own destiny when it came to their investments. They both had purchased 1500 shares of Qcom with the funds redeemed from their mutual funds. Bobo was convinced it was for the best and could not have been happier but the same could not be said for Bebo. Bebo could not get the words of that man Voltaire out of his head, "you can have a million bucks in the market and it does absolutely nothing for your quality of life or stress reduction, (as a matter of fact it will probably increase stress) unless the investor decides to enjoy life now, rather than later". He had thought about the monthly strain placed on him and his family as they tried to meet just their basic needs. Bringing home barely $1,250 every two weeks and it seemed as if there was just never enough money and if anything they owed more every month and ironically this month he needed to come up with $3,500 for taxes. That night Bebo did not sleep well but he did come to the decision that in spite of the trepidation, he would write his first Covered Call the following day. Instead of selling his QCOM shares for the money, he had learned how to read an Options Chain and had seen Thursday that the April 132's on Qcom were paying 10.6% or $1,400 per contract or better yet, the figure that really mattered, an astounding $21,000 and not only that, it would be deposited in his Please Trade Inc. account the next morning. My God thought Bebo, that is almost two thirds the amount that I net all year long working at the factory. To say that Bebo was walking on cloud nine the following morning is an understatement. A myriad of thoughts passed through his mind on the way to work, taxes, bills, bills and more bills but there was also a feeling he could not explain, and it was not until he realized that he was whistling rather than worrying that it hit him, Control, yes control, that is what it is. I am in control for the first time in my adult life, wow what a feeling and all because I decided to take some of what was already mine anyway. It was about 4 o'clock that afternoon that Bobo rang and told him that Beaula had called and asked if they could come over that evening, she had something she wanted to discuss. It was around 7 P.M. when they arrived at the old home place and Beaula met them with a hug and ask them to come into the kitchen. They had yet to take their seat when Beaula started telling them that their father's condition had worsened and he is at the point where he needs a full time nurse. I am a little scared she said and began to tear. I know I shouldn't be thinking about the cost but we only have $75,000 left from the inheritance and I was hoping we wouldn't have to spend that until things got a lot worse. What is scary is, I have checked on nurse help and the least expensive I could find was $10 per hour. That doesn't sound like much but at 50 hrs. per week it comes to about $2,000 per month she said. Bobo assured her they would have the money even if he and Bebo had to get night time work. Bebo had other ideas and explained how taking the retirement money buying stock and writing calls would not only solve their problems but better yet, Beaula could actually quit her work and take care of Bo herself. Conclusion: You see not only had CC writing changed Bebo's life but in one fell swoop changed the lives of three others, Bo, Beaula and Bobo. Bo, would get better care from the woman he loved, Beaula could quit her job and take care of the man she loved and Bebo and Bobo would not have to work nights and finally their vehicle, the $75,000 that most people would have to spend is still in tact and making $6,000 to $7,000 non margined per month. It's sad most families do not know of this. Voltaire