Fri 9 Feb 2007
How I Earned An Extra $7481 In One Year
Posted by RichSlick under Money Trades
Thanks for visiting. This blog is intended for individuals with Net Annual Income of $105,000 or more. Get Rich Slow + Get Rich Quick = Get Rich Slick. If you're new here, you may want to subscribe to my RSS feed.
It takes money to make money and that $7500 is no exception. Over the past 12 months, I strategically invested money in Exchange Traded Funds, periodically wrote covered calls and profited from the transactions.
I’ve been personally happy with the success of my strategy and I will be expanding it to include arbitrage money soon. In the meantime, check out www.etfcoveredcalls.com where you can see my money in motion and check out what I’m looking at over the next few months.
I’ll have a special treat for everyone next week on some components of my wealth building strategy. Don’t worry, it’s all free, no need to send me $189 or sign up for some $1000 newsletter!
February 12th, 2007 at 1:52 pm
Have you contemplated writing puts instead of doing covered calls? Why/Why not?
February 12th, 2007 at 6:59 pm
Writing puts to straddle calls or simply writing naked puts to buy in at lower level?
I’m planning on doing so in my arbitrage account as soon as I get that going but it’s just easier (and more profitable) to write covered calls.
February 13th, 2007 at 12:34 pm
No, what I meant was you are using covered calls to generate income. At maturity, a covered call has the same profit diagram as selling a naked put (although you own shares with a covered call). Since you are rolling your covered calls when they expire, wouldn’t it be easier to just sell naked puts for income and not have to pay two sets of transaction fees?
Just curious. I’m trying to learn about this as much as I can, and I appreciate your candidness in speaking about your strategies.
February 14th, 2007 at 9:35 pm
Actually the naked put doesn’t necessarily have the same profit diagram. The ETF Cashinator report shows Calls & Puts for each ETFs and they are not necessarily symmetrical.
The commissions are just the cost of doing business and if it is a serious concern for you there’s always Zecco, Bank of America or Wells Fargo - more trade free brokers coming along every week!
Keep in mind that in order to do puts you will likely need an account with at least 25k whereas covered calls can be done with smaller accounts.