http://livingoffdividends.com/2006/11/10/selling-covered-call-options/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 13 Dec 2011 07:31:37 -0800 http://wordpress.org/?v=2.8.1 hourly 1 http://livingoffdividends.com/2006/11/10/selling-covered-call-options/comment-page-1/#comment-13123 Tom Sat, 23 Aug 2008 19:46:52 +0000 http://www.livingoffdividends.com/2006/11/10/selling-covered-call-options/#comment-13123 I have been selling covered calls on good quality, dividend paying stocks for years. You don't sell the call for less than you purchased the stock. You sell for 1 or 2 strike prices above the current price. The cash flow you make (combined with the dividends) you reinvest to buy more good quality stocks. Compounding monthly cashflow AND quarterly cash flow can add up quickly. If you need additional cash one month you take the cash. Once the dividends you recieve can replace your monthly income...you earn your freedom (from the "Rat Race"). I have been selling covered calls on good quality, dividend paying stocks for years. You don’t sell the call for less than you purchased the stock. You sell for 1 or 2 strike prices above the current price. The cash flow you make (combined with the dividends) you reinvest to buy more good quality stocks. Compounding monthly cashflow AND quarterly cash flow can add up quickly. If you need additional cash one month you take the cash. Once the dividends you recieve can replace your monthly income…you earn your freedom (from the “Rat Race”).

]]> http://livingoffdividends.com/2006/11/10/selling-covered-call-options/comment-page-1/#comment-420 mOOm Sat, 11 Nov 2006 18:55:00 +0000 http://www.livingoffdividends.com/2006/11/10/selling-covered-call-options/#comment-420 What stock trading for $2.70 has options? Perhaps LU? What stock trading for $2.70 has options? Perhaps LU?

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