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Strategies & Market Trends : cash flow investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (31)	7/25/2011 4:27:21 PM
From: deeno	Read Replies (1) \| Respond to of 94

I think his point is similar to what I was asking you in the PM's. As Prices drop you would get less premium writing the same calls. Should you drop your strike price to keep the income high, then you run the risk of calling the securities for a loss. So either principle is erroding or the income is. Your answer was that you had no attachment to any position and that you would continue writing the calls for income EVEN if the strike price was at a loss. Your stance was when called you would better place those funds with a better income opportunity or buy back one that you were called from in the past. To answer his question yes your portfolio would have been down big bucks, but in fact your income stream might not have been greatly affected. Not sure how you might fare in a prolonged bear market, but with brass balls I can see how you might recover and would have enjoyed an above average cash flow..