Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tapcon who wrote (10056)	9/27/2011 8:12:15 AM
From: Bocor	Respond to of 34328

Do you go out a couple of months at a time and go for the strike price above the range of the last 6 months or so? I can tell you how I personally do it, and so far this has been successful for me. I don't sell calls every month; obviously when the market is continuously down, it's a bad time, however if there is a several day spike, and my particular stock runs for some reason, if it also has a decent call premium at a price near it's 52 week high, and volume is mediocre, then I take a shot. For example, I sold the ABT 55 calls last week on it's big price spike for .34. On Aug. 31, I sold the BMO 65 calls for .30. I stay within the same month, always. Too much can happen in this market the longer you go out, and I really don't want to lose the stock. I have almost doubled my yield on stocks like ABT and BMO, although I don't get "stock reinvested" so I can't say the yield is really doubled, because all I am getting is cash, and not purchasing the stock with that cash. Others not so much, since the premiums are just not enough to take the risk. Mostly I look for the price spikes to catch the premium that makes the risk worthwhile. Hope that helps....