After the dot com crash, many friends gave up on the market and resided to either move their money into cash or invest in highly conservative mutual funds. Not happy with either of those choices, despite losing some money in the crash of WorldCom, I decided to invest in a little investment education. I purchased various books only to be greatly disappointed.

I finally stumbled upon a book named Covered Calls & Naked Puts by Ronald Groenke. I was captivated by the nature of the investment strategy and a bold statement the author makes in the book,

“You make money SELLING stocks not holding them.”

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That sentence has stuck in my mind for the past two years and changed my whole philosophical outlook on investing. The book is essentially written as a story about an older couple that is running out of cash during their retirement years. Eager to find a new way to create cash flow, the main character, Jake, meets up with an old finance professor who has been phenomenally successful in investing. Jake asks the professor to teach him how to make money off of the stocks he owns the way the professor has been doing so successfully over the years.

The next few chapters are dedicated to “teaching” Jake how making money from stocks by using Covered Calls is a very conservative way to generate cash flow from existing investments.

The book is easy to read and can be done so in a long sitting. What I really like about this book is that you will learn something new the second and third time you read it.

I have taken what the professor “taught” Jake and expanded it to focus strictly on Exchange Traded Funds. It is primarily because of this book and the lack of information it contains out in the financial blog world that I decided to start this blog!

Needless to say, I HIGHLY recommend this book as an eye opener into the world of covered call transactions and the methods for creating cash flow from stocks you may already own.