Flieger
Recycles dryer sheets
- Joined
- May 27, 2023
- Messages
- 77
Inspired by this thread, I have dipped toes in to Covered Calls with 5 stocks that I intend to hold. Just started this (in April) as a way to supplement income once retired in next year to year and a half. I'd like to outline my thoughts on this strategy/plan and see how it aligns with those that have been at this a lot longer and that are much more experienced with Options. I am now looking at cash covered Puts to accomplish my stated strategy below of reallocating position across more sectors. So far:
~$500k in positions allocated to this "income strategy"
Avg DIVS - $1,766/mo
Avg Options - $5,162/mo
Total Avg "Income" - $6,928/mo
I am going to decrease holdings in these 5 stocks to allow same overall position value with 5 additional stocks to add some sector diversity.
I am trying to "ignore" for the most part the position swings in overall value (other than what I would do with any stock as far as decision making on hold, sell, buy) and only looking at the "income" side. I am also looking at beta of 1 or less average for the 10 positions once I have re-allocated.
Open to thoughts/suggestions.
~$500k in positions allocated to this "income strategy"
Avg DIVS - $1,766/mo
Avg Options - $5,162/mo
Total Avg "Income" - $6,928/mo
I am going to decrease holdings in these 5 stocks to allow same overall position value with 5 additional stocks to add some sector diversity.
I am trying to "ignore" for the most part the position swings in overall value (other than what I would do with any stock as far as decision making on hold, sell, buy) and only looking at the "income" side. I am also looking at beta of 1 or less average for the 10 positions once I have re-allocated.
Open to thoughts/suggestions.