s0me0nesmind1
Lifer
- Nov 8, 2012
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I think you're making this more complicated than it is.
A covered call is the safest investment vehicle you can use. You can't lose money you already have. You can only lose potential profits.
You have 500 shares of AMD. You'd be willing to sell at $27 a share.
Instead you sell an agreement to someone that allows them to purchase the shares at $28 a share on May the 3rd, and they pay you $655 for that agreement. If the stock is below $28 on that date you keep the $655.
I'm in the same boat as Cepak.
It's not that we're making it complicated - it's just that from the looks of it this type of action takes a lot more thought process and paying attention to the market.
I prefer to invest like Cepak - it's a much more passive way to make some investment money on the side without much time dedication while still doing our normal jobs (9-5, being a parent, etc)