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Re: gfp927z post# 7165

Saturday, 05/19/2012 10:53:56 AM

Saturday, May 19, 2012 10:53:56 AM

Post# of 19856
One way to play options in a boring way is to own the underlying stock and write covered calls against it.

A stable high div payer works well for this, like a bmy say.

If stock is paying 4.5%, and you pocket some cash every three months by selling calls, you can increase your return to say,6.5%, over time....lots of bond guys would kill to gain .25 of a point over time. As long as the stock doe$ not get called away you can write them 4times a year.

Note...learning to type on tablet, sometimes while on exercise bike, so spelling, puntuation, are likely worse than normal,,,,there must be built in checker that also likes to respell words, add periods, and remove decimal points,....overall love it though.

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