Advanced Micro Devices Inc (AMD)

[8-/]

HailMary,

I think I like your strategy. As a long term investment plan it has the flavor of cost averaging over time always below current market with monthly return. The problem I see is that a goodly part of your 'buys' which result from the put sales would inevitably be of stocks coming off their highs so selection of put sales would be important.

I don't know if it's still valid but there was a study illustrating that options at the minimal extremes of value were not priced high enough for their actual risk. That's what got me looking and finally buying them, but I've come to like buying only those with a lot of time left. 6 Months or more.

I'm going to have to think on this one but may start looking at selling put options on 52 week lows from IBD -- or something like that. Do you have any particular method you use to select the stocks you're putting?

8-/