Replies to post #43327 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi Allen, Re: AIM and Options...........

Congratulations on your nice returns. Options as an adjunct to AIM can be a good way to enhance one's total return.

[Toofuzzy]

Hi SF

When you first sell a put you need to have the cash sitting around to actually take delivery So I would use that as the starting date.

So if you took in $1 you actually need $19 to back up the $20 put. 1/19 = 5.2% return over 90 days or 21% annualized ( 5.2 x 4 )

If you then sell a $20 call and have it called you made ( roughly ) 2 / 18 = 11.1 % or 22.2% annualized

Or you made 1/19 = 5.2 % then 1/18 = 5.6% so 5.2 + 5.6 = 10.8 % x 2 = 21.6% annualized

That's my thought.

Toofuzzy