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

To: PoetTrader who wrote (2162)	8/21/2001 4:09:38 PM
From: rydad	Read Replies (2) \| Respond to of 5205

As you probably have read from my past posts, my job is being relocated to Florida. I do not want to move, so I am looking for a new engineering job. But the job market in Southern California sucks. I have worked jobs outside of my field and most of them suck. Hard work, low pay. I figure I could do better writing calls and puts and be able to take care of my kids (at least I won't have to pay for child care). That's how I stumbled upon this thread. The one strategy that made the most sense to me was the Roth Income Generator that someone posted. It incorporated all of the major strategies that everyone has talked about here. So I (in my case) would probably start by writing puts instead of doing a buy/write. I figure since the market is tanking again since the rate cut, and everything is at the low end of its trading range, it's safer to write the puts. The only problem is adhering to the rule of buying only that stock that you are willing to hold if you get assigned. I'm not too sure of what I am willing to hold. If I get too greedy for higher premiums I will take on more risk than I would prefer. I do like QCOM but its not dipping. I already covered QCOM. Maybe I'll do a CSS on QCOM. I was thinking of selling puts on things like GE, Johnson and Johnson, Home Depot and similar non tech companies. I realize the premiums are low, but I don't want too high of a chance of getting assigned if I sell the puts. The all pay like 3% per month. When you sell your puts do you ever get assigned? I'm wondering how far out to sell the puts. I know I haven't really said anything new here, you just seem nice to write to. Best to you. Rydad