Updated: April 6, 2017
The past year has been good for the S&P 500: it’s up about 15.7%, including dividends.
So if you’re simply tracking the index through an exchange traded fund, congrats. That’s a decent gain.
But I’ve got one simple trick—and a far superior fund buy—that can help you do even better … and grab a big chunk of your gain in cash, too.
That trick? Covered calls.
Covered calls are a strategy in which investors buy stocks and sell call options against those stocks.
Think of call options as a kind of insurance; investors buy them if they are short the market and want to protect themselves from blowing up in case the market rallies.… Read more