Monday, August 9, 2010

This strategy is definitely worth researching

I recently heard about a strategy which allows an investor to earn rent on his shares. It is commonly known as a covered call strategy. According to Karim Rahimtullah, "When you sell call options against your shares that you already own, you’re getting paid to sell your shares at a higher price.
And that only happens if the shares close at or above your chosen strike price when the options expire. Think of it as collecting rent from your portfolio. And who doesn’t like collecting rent?"

Definitely a great idea, but how to do it? Will explore more on this.

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