safe monthly income I make on my stock portfolio - Great passive income
By LessIsMore
@LessIsMore (1)
United States
December 26, 2007 2:10pm CST
I believe in gaining wealth through multiple passive streams of income. One way in which my family and I receive monthly cash is through writing covered calls on stocks which we own and selling puts on stocks which we wish to own. I am not a risk taker (I don't go on roller coasters) and I believe in safety with my investments.
I choose my stocks carefully using several personal guidelines and then when the strike price is right I sell a put hoping to acquire that stock at a lower price than market. Of course when I sell the put on the stock - that put money enters my account that day and I have received an instant income. ***Note*** When I sell a put I always make sure that I have the money to purchase that stock in my account in the chance I get put the stock - I personally don't use margin.
If I own the stock already, I wait for the appropriate strike price and sell the COVERED call on that stock and that money enters my account that day and I have again received another instant income.
This is a great way to get passive income each month.
I do have some stocks that have made me a lot of money. I do always remember that these stocks that I use for passive income are inventory stocks only... no drawer stocks and therefore I don't get emotional if they get called away from me. I just look for another good stock of which there are many.
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