Covered Calls are High Yield Investments

Check out this article from Invest-Safely.com on covered calls. It is a pretty simple example, but illustrates the point well.

YES! Creating high yield investments for yourself is possible. The real question is how much time do you want to spend attaining this goal…

I’m not totally sold on picking low volatility vehicles at this point, but I can’t argue with the rationale.

Also, you want to find something that does not have a lot of price swings (volatility). This way, you can spend less time worrying about the changes in your account balance (from changes in the investment’s price).

But Here’s the rub: the lower the price swings, the lower the yield you will make from covered calls.

Sources:


High Yield Investments
Invest-Safely.com
http://www.invest-safely.com/high-yield-investments.html

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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

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