Thank you for your kind comments. As I speak to others I find that many of them have similar investment goals and strategies which can be pretty much boiled down to creating and growing a continuing cash flow stream. Most do so only with dividends because they do not understand how selling covered calls or cash covered puts work and how conservative the strategies are. I try to explain but sometimes you can just see the eyes glaze over. Sometimes a spark appears and I leave them with the hope that they will do a little studying and try it for them selves. I don’t even try to explain about buying a call of put to use some leverage and create larger percentage returns. And, as I’ve said, I don’t do it very often myself because I just don’t feel all that comfortable doing it most of the time. I would have liked to purchased some AAPL calls prior to their reporting in July because AAPL most often beats estimates with the result that the stock climbs in the days before the report. However, being on vacation this month, I knew I would not be able to monitor them so decided to not make the purchase this quarter.

Bill

Thank you,
Larry B

Thank you for your kind comments.

I’ve read so many books that I’m not sure I can say which one or ones might be most helpful. Some are specific to trading in options and some are a little more mind opening about the opportunities.

I suggest reading some of the Robert G Allen books. I liked his books more for seeing possibilities than for specifics on investing. However, he does present some specific ideas that I use now and then.

A book that I found interesting is “The Complete Guide to Option Selling” by James Cordier and Michael Gross. The authors write most of the book from the viewpoint of selling futures options on commodities (which I do not do) but also write about how the same concepts apply to selling equity options.

There are books available for all levels of current understanding or interest. I think that what works best is to read a broad variety of books, blogs and web articles on the subject. Then you can pick the pieces of the various methods that you think might work for you and try them out.

Although most of my posts are about my options trades I should remind that I tend to trade options on stocks that also produce dividend income. My dividend income is a significant portion of my monthly revenue stream and runs between 25% to about 30% of my cash flow each month.

I wish you the best of luck in your study and for many years of successfully pulling cash from the stock markets.

Bill

I am from Taiwan and I love your blog about selling put and Covered Call. I would like to do the same way as you. Would you like to share the information or book to me for further studying. Thanks!

Frank Kao
frank@quality-income.com