LIVING OFF DIVIDENDS & PASSIVE INCOME

Since WCI was up sharply, I closed out the January $20 Puts. There’s only 2 months left and like someone famously said, “Markets can remain irrational longer than you can remain solvent”. Better to take a small loss now than a bigger loss later on.

I still think the underlying fundamentals are bad so I’ll keep my other Puts and bear Calls in place. I think I should’ve entered into Spreads instead of just selling out of the money naked Calls. That would’ve reduced the premium I collected but it would’ve limited my losses. Of course, I could still implement that strategy, but its going to be a bit more expensive since my out of the money Calls are now in the money.

I expect the stock to wind down a bit going into the long weekend. I might close out some of the March positions at that time.

On the bright side, the in the money naked Puts I sold for a Junior Mining stock will be expiring worthless today!

• Forecasting Tools Came across this website called Forecast.org.They have a 6 month forecast[into the future] for all financial data including stock market indices, currency conversion rates, interest rates, commodity prices, etc. I don't expect them to be very accurate [coz if they were they'd trade their data on the futures option market......
• Closing Out JRCC In an earlier post on investing on news, I had sold puts on JRCC.Well JRCC was up sharply in the past few trading sessions. I closed out my position by buying back my naked puts and netted a 38% profit (sold the puts for 1.95 and bought them back for......
• On Going Naked In a previous post on WCI, I had mentioned that I had sold some March 2007 Calls. When you sell a call and you own the underlying stock, its called selling (or writing) covered calls. In my case, where I don't own the underlying stock, its called selling naked calls.......

• How to Evaluate Your Financial Risks Whether we realize it or not, many of us face financial risks every single day. From the high powered investor, to the minimum wage earner, every one of us has the potential to lose everything we own. How can you evaluate your financial risks and find ways to secure your......
• Buying a Background Check versus Doing Your Own Do you have someone you want to investigate?  Whether that person is a new neighbor, romantic partner, roommate, handyman, or daycare provider, a background check is the best step to take.  Background checks are easy to acquire online, but are they worth the money?  Should you buy a background check......
• Canadians Not Prepared for Retirement We've all read the articles about how so many baby boomers in the U.S. feel unprepared for retirement. A lot of the feelings of being unprepared are based in reality: They just don't have enough money put away to comfortably live on in retirement.  It seems that Canadian baby boomers......

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