Aug. 18 at 7:26 PM
$XIFR I decided to do some buy-writes with my cash. Bought 3500 more shares at
$10 and sold 35 September 10C's for .56 - So in 1 month either it'll be over
$10 and I made a 5.6% gain on 35K or i'm sitting on shares that i have only
$9.44 invested into. Should It be below
$10 i can just turn around and write the calls all over again the next month..... Just incase there are folks here looking for ideas on how to increase monthly cash flow.
Got .20 cents a share for the 11's expiring next month on the shares i already owned and had already sold (now expired) Calls against those shares previously.
OTM covered calls and buy-writes have boosted my holdings by more than just holding ever has for me.
If you place a higher priority to minimising downside risk than you do on upside potential then these strategies could help you out too.