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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Mathemagician who wrote (1881)	8/10/2001 1:11:06 PM
From: rel4490	Respond to of 5205

Thread, Mathemagician's post(#1881) is an outstanding simplified summary of a plan to generate consistent,low risk income. Yes, it is slightly more than selling covered calls and it takes some tinkering if most of your assets are in a retirement account, but it is worth the effort. For use with retirement accounts, you need to have another taxable account to work with. Start with sufficient cash in your retirement account and regular account to accept assignment of any puts sold. If the puts you sell are not assigned in your regular account, keep the premium and continue writing puts until you are assigned. When you are finally assigned the puts in your regular account, immediately sell the stock and purchase it in your retirement account. Yes, you pay 2 commissions, but you have purchased the stock at a much larger discount from the price at the time you sold the put. Now write a call in your retirement account. If called, keep the appreciation and the premium and go back to step 1 and sell puts in your regular account.