A.I.M. Users Bulletin Board

[SFSecurity]

Hi TooFuzzy, Yeah, I used the amount that the PUT would require if it was assigned when calculating the total return.

As to where the money comes from, it is a combination of earned dividends and the income from selling PUTs and CALLs as well as income when a CALL is assigned the difference between the purchase price and the CALL price.

I haven't tried your approach of buying a CALL at a deep in the money price, partly because of the current volatility of the market and partly I can't say I truly understand that approach. I'll have to find an ETF (Do you have a suggested one to try it with?) and paper trade it a bit to see how it works. It takes quite a bit of time to do paper trades enough to cover variations in the market. I spent over a year doing the one I'm using now, selling PUTs and CALLs as well as extra shares to AIM with.