Skip to main content
No. of Recommendations: 1
I would only do buy-write in an IRA as the tax consequences of being called away eat too much of your profits.

Your option premium and return profile are related to the volatility of the stock. Examples:
GE for $33.85 and sell Apr 35 for $.70 gives you a 5.5% return if called for 51 days.
VLO for $58.27 and sell Apr 60 for $2.65 gives you a 7.5% return if called for 51 days.

Don't do this with any company that you're not willing to own for a longer term.

Long GE
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.