A Low Risk Income Strategy For All Economic Conditions

[samiam40au]

Hi everyone. I'm interested to know if anyone did this training with Christine McDonald at LowRiskIncome.net (site now gone, use WayBack Machine to view) around 2012-2015 ?
She sold covered calls and made it look simple to do.
Thanks.

 

[divs4ever]

welcome to ASF ,

no not me ,

i looked at options and could not create a strategy that worked for my desired outcome

i know some LICs use this strategy ( covered calls ) maybe studying them ( or even contact them )

 

[wayneL]

Covered calls have been covered a multitude of times here on ASF.

Low risk income? Not quite.

CCs do lower volatility of returns if used systematically, both on the downside and upside, but important to note is that returns are not always in the form of income as such as far as the ATO is concerned, tax treatment being the elephant in the room.

It is conceivable you could have an overall loss, and a tax bill in a given year.

Otherwise, as CCs do have delta (and -gamma), you are taking a directional view of the market, whether you realise it or not.

It's a valid strategy for a specific market view, but in no way an income panacea.

 

[Dona Ferentes]

Covered calls have been covered a multitude of times here on ASF.
Low risk income? Not quite.
CCs do lower volatility of returns if used systematically, both on the downside and upside, but important to note is that returns are not always in the form of income as such as far as the ATO is concerned, tax treatment being the elephant in the room.
It is conceivable you could have an overall loss, and a tax bill in a given year.
Otherwise, as CCs do have delta (and -gamma), you are taking a directional view of the market, whether you realise it or not.
It's a valid strategy for a specific market view, but in no way an income panacea.

quite so, @wayneL .. but I think our worthy new member will be leading us to 2024's version of the fabulously successful and sadly missed Christine MacDonald sometime soon.

 

[wayneL]

quite so, @wayneL .. but I think our worthy new member will be leading us to 2024's version of the fabulously successful and sadly missed Christine MacDonald sometime soon.
View attachment 168628

Yes noticed that, but benefit of the doubt an' all that. Additionally, if it kicks off a fruitful discussion with other members, good.

Once upon a time I had considered writing a course on options, but actually telling it like is. I was going to title it The Naked Truth (an obvious pun for those in the know).

I didn't think it would sell though, people will only pay for blue sky pipe dreams.... You know "Make 3-5% per month, every month, for the rest of your life", incredulity notwithstanding.