Monday, June 13, 2011

How To Treat Stock Like Rental Property

Treating stock like rental property
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On Week ago I did my first Covered Call on the Silver EFT. I earned a 1.47% return for the week. I created a report called How to Treat Stocks Like Rental Property. It describes what a covered call is, gives an example, and documents the results.


Since my position was uncalled, I rented the stock out again this week. Unfortunately I only received 5 dollars in rental/premium income this week. I will update this trade in one week.


As of today silver is trading below 35 dollars. I am considering the purchase of a put options as insurance on my position.


Note: I started my OX virtual account with 25,000 dollars. I subtracted 20,000 from the balance, giving me an account balance of  5000 dollars. I will log my trades and make a spread sheet to track my results.


What are your experiences with covered calls? Please share them in the comment box below.


That's all for now. Have a great day.