IRA / Kevin – You can of course do calendars in your IRA. This is what I do. I have FCX in mine, buying the Jan 16 25 calls and selling quarterly calls against it. You can probably sell $3-4/year against that position and lower your cost to maybe $2 which gives you the right to buy FCX for about $27. Same as selling a put with the advantage that you can actually make more if FCX takes off…
That works well with the high volatility stocks. For example, my cost basis for my ABX calls will be negative in the next quarter so can't lose…
April 17th, 2014 at 4:01 pm
IRA / Kevin – You can of course do calendars in your IRA. This is what I do. I have FCX in mine, buying the Jan 16 25 calls and selling quarterly calls against it. You can probably sell $3-4/year against that position and lower your cost to maybe $2 which gives you the right to buy FCX for about $27. Same as selling a put with the advantage that you can actually make more if FCX takes off…
That works well with the high volatility stocks. For example, my cost basis for my ABX calls will be negative in the next quarter so can't lose…