This part covers selling covered calls on long-term stock holdings.
For our retirements, we buy great stocks when they are beaten down. Technology stocks sell down about twice a year, making them good buys. Other sectors have there down times as well. Those are the times to make your major buys, but they also offer great opportunities on breakouts all during the year as they move out of strong consolidations. That is just half the battle, however. Warren Buffet is a great value investor, but he is also a very good covered call writer on his investments. That is how he amassed much of his incredible gains. We watch the charts on the stocks in our retirement accounts carefully, selling calls at resistance levels, and buying them back as the stock approaches support. That way we have hard cash hitting our accounts for use in buying more stock the next time prices are right. The beauty of it is that we often have large blocks of stock in our retirement accounts, and making $0.50 to $1 per share is very good money. Also, we like to keep some retirement money with brokers who will allow us to write puts on stocks as a way to buy those stocks at a discount price. We wait for the stock to hit support and move up, then sell puts on it. We may not buy the stock if it moves on up. In that case, we keep the profit and look for more good stocks. These are great, low-risk methods to put real teeth into your retirement accounts. We have several stocks in our retirement accounts. This section, however, is for you, so you tell us what stocks you want to have reviewed. If they are widely held, we will look at starting coverage on them as well.
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