Selling Covered Calls: 10 Minutes a Month Is All It Takes To Manage 5 to 7 Positions

Video # 3 in our new 7-part series, featuring Roger Michalski and Bryan Perry.

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Selling Covered Calls: 10 Minutes a Month Is All It Takes To Manage 5 to 7 Positions

ROGER: Hi this is Roger Michalski, publisher of Eagle Financial Publications. This is video three of our series, we have been talking with Bryan Perry the Editor of the Cash Machine newsletter, about the covered calls strategy: a low-risk way to increase income into your portfolio. But I think a question a lot of the viewers have is, is this going to take a lot of work?

BRYAN: Well, at first glance you would think it would take some time because the idea of trading options sounds complex and there must be a lot of mechanics involved in all of this. When in fact it is just as easy as buying and selling stocks with the click of a mouse. Every online brokerage account has what they call an option chain attached to it, so when you just put in a regular stock, and we have been using Starbucks as an example… For instance, you can just click on options and there is your puts and calls in a big drop down list and all you have to do is follow what you want to do in terms of what options you want to execute.

And you just put in the limit price, how many contracts you want to execute, against how many shares of stock you own and away you go. And for a good portfolio that generates 5 to 7 different option contracts per month, with positions that you might want to have in play under 5 to 7 different common stocks, is typically what I would think is a good manageable portfolio to work with.

And it’s going to take all of 10 minutes or a cup of coffee to execute that and then you are done for the month. And you can just let it go and let it ride as we call it and to see how those positions play out over the course of the next 30 days.

ROGER: Yeah, so just drink a cup of coffee and watch the money roll into your account.

BRYAN: Yeah, it hits it right away, too.

ROGER: Sign me up for that! And speaking of accounts we will talk in the next video about what kind of accounts you can do this cover call strategy in. This is Roger Michalski and Bryan Perry, and thank you for watching this series.

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