Selling Covered Calls for Passive Income - MFI Series1, #104 - E-book - ePub

Who doesn't love having options? As we transition to retirement and living the laptop life, wouldn't it be nice to make money from stocks we already own? Money on top of dividend income and capital gains? By selling covered calls, we can earn the premium and keep the underlying stocks. However, we have to sell these options safely by picking a safe strike price. We cannot get greedy.  Selling options can be very complex at first, so we need to take our time learning these systems.
However, if you can understand the concepts and trade as long-term investors, we can force "synthetic dividends" and increase our yields. Selling covered calls isn't for everyone, but it may be for you if we remove the guesswork. The more options we have to make money passively in retirement, the more comfortable we can live.