Friday, May 29, 2009

I <3 Theta

I see theta as a way of being on the house side of the wall street casino. By being a seller of options, I make money on days when the market doesn't even move. I read all these articles about how great dividends are, how it's great to be a dividend investor. Anyone can turn their long stock position into an income vehicle by selling out-of-the-money covered calls. Sell the call at a price you told yourself you'd sell your position anyways. Then you get paid to follow your investment plan... a little easier to stick to your plan when you're getting paid to do it.

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