- Using Both Covered Call Writing and Put-Selling to Generate Monthly Cash Flow
- Selling stock options is a proven way to lower your cost basis and beat the market consistently. Alan will educate you on two such low-risk strategies –covered call writing and selling cash-secured puts
- Get details on how to incorporate both strategies into one multi-tiered option-selling strategy where you can either generate cash-flow or buy a stock at a discount
- The basics, pros, and cons of low-risk option-selling strategies will be discussed, with an analysis of a real-life example and introduction to the BCI Trade Management Calculator (TMC)
You have owned shares of stock in your non-sheltered accounts for many years. Share value has been appreciated significantly over time. This has put a smile on your face. Many of these securities have also generated dividend income. This, too, has pleased you. However, there is a 3rd income stream that you can activate right now, leveraging these same stocks, using a strategy known as covered call writing.
– This is a low-risk option selling strategy analogous to generating rental income with a real estate investment property.
– Yes, renting out your stocks for limited periods.
– We have 2 goals: generate a 3rd income stream and retain the underlying shares to avoid negative capital gains issues.
This presentation will analyze how to implement this form of covered call writing, known as Portfolio Overwriting, always with capital preservation in mind.