LIVING OFF DIVIDENDS & PASSIVE INCOME

My condor spread on the December oil futures expired worthless and I kept the $1200 in premium that I can collected in october or november. At the time the price of oil was around $55/barrel. My broker suggested that I sell the 70 calls and the 49 puts with a december expiration. We bought the 74 call and the 45 puts for the same expiration.

A condor spread is a delta-neutral strategy and involves a bull put spread and a bear call spread. You sell a call and a put close to the existing price of the commodity [or stock, or stock index].[the call will be higher priced and the put lower]. You then buy another set of calls and puts outside the first set to limit your losses. You should collect a premium based on this and if the price of the asset stays within your 1st set of calls and puts by expiration, you get to keep all the premium. [I hope this makes sense. If you don't know what a call or a put is, it probably won't].

The best way to make money with options is by selling the time premium. I’ve learnt this the hard way by losing a lot of money buying options that usually expire worthless.

Here’s a really good book I’m currently reading.

Here’s another good book one of my friends recommended.

Its a bit pricey so i’ll see if the local libraby has it. It probably won’t have it, but its always good to check. Otherwise I’d easily end up spending $2500/year on books.

• Mortgage Meltdown: The Worst Is Yet To Come! Check out this 12 minute video from 60 Minutes. There's another wave of mortgage defaults on the way, this time from Alt-A & Option-Arm (also called Negative-Amortization or Neg-Am) loans. As opposed to the subprime loans which were worth almost $1 Trillion, these two groups make up nearly $1.5 Trillion. ......
• How To Make Money On Ebay Without Actually Selling Anything As of July 20th 2009, I've received over $8,500 so far from Ebay. But the beauty is I didn't actually sell anything. That's right, Ebay sent me the money for referring buyers to their site. Since several of my fellow bloggers have asked me how to go about making money......
• How To Make $3,000 A Month One of my investor friends forwarded this link from Google Answers.Finacial gurus,I am looking for the most probable way of earning $3000 monthly with a $30,000 cash investment. This is all I can commit, no additional monies, no borrowing. I want this to supplement my regular 6am-3pm job.I have thought......

• Investing 101: Options (Welcome to another informative and exciting edition of Investing 101!  We're going to go a bit beyond the basic investment classes like stocks and bonds, and into some of the more exotic investment and speculation opportunities.  Our subject for this article is options.) Q: I keep hearing about options in......
• Eight things to consider when buying someone out Over the past few weeks I've bought large amounts of things from folks running yard sales.  The first buy-out was a whole bunch of scrapbooking and stamping supplies from a home business owner who was moving on to other things.  The second buy-out was a large collection of music CDs......
• VoIP Phones - Cost-Effective Way Of Calling Evolution of television and cell phones are no more a news to astonish you. It may be called today as new communication medium, but modern communication tools have made a deep impression on our daily life. VoIP Phones are one among various modern communication tools available today to make......

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