The Money Tree: Risk Free Options Trading - Softcover

Groenke, Ronald; Keller, Wade

Softcover

ISBN 10: 0967412811 ISBN 13: 9780967412818

Publisher: Keller Pub, 2002

Synopsis

A novel explaining the options strategy of selling covered calls. Most investors are not aware of this conservative risk free strategy that can generate a 25% annual return. The book explains with easy to understand examples, first how to pick the right stocks and second how to sell options on those stocks.

The basic principle involves buying solid companies as a basis for selling options and generating a steady stream of income.

Stock ownership is, of course, not risk free. But once that risk has been assumed, as millions of investor have done by owning stock, then there is no additional risk in selling call options on that stock. In fact by generating income you are mitigating the downside risk of stock ownership.

Wayne Kimball has retired to south Florida on an investment portfolio not generating enough income to support retired life. By chance at his local Rotary Club he meets his Finance Professor from 30 years back. Professor Rob Graham, now retired, has been very successful. As they renew friendships, the Professor takes Wayne step by step through the process of building a portfolio and generating an income of 25% by selling covered calls. The authors use real life examples to explain the "Money Tree" strategy.

About this title

About the Author

Ronald Groenke moved from Minnesota to the sunny gulf coast community of Marco Island after twenty-five years in the communications systems and software development environment. He has been active in the stock options market for fifteen years and developed the concepts and techniques provided in the book. On Marco, he and wife, Jean, are active in their church and busy entertaining family and friends who visit from the north.

Besides options investing/advising, other activities include personal computing, Rotary, walking, boating, and traveling.

Ron can be reached at robgrahamphd@aol.com

Wade Keller, a native of Greenville, Georgia, has retired from careers as Owner/Manager of a CPA Firm and College Professor. Currently he is a writer, primarily a ghost writer of personal memoirs.

Wade and wife, Sue, live on Marco Island, Florida where a main activity is spending time with their five grandchildren, ages one to thirteen.

Other than writing and grandkids, interests include Toastmasters, Rotary, chess, reading, travel, national politics, and walking on the beach at sunset with Sue. The couple has recently learned the rewards of writing covered calls.

Wade can be reached at wade@kellerpublishing.com

From the Inside Flap

A Proven Money Making Options Strategy for the Average Investor "You've got a few stocks in your portfolio you can't bear to part with. While you're waiting for that former high-flyer to take off, you can collect some money from it - charge the stock rent for taking up space in your portfolio. By using a strategy called covered call writing, you get your cash up front from someone who speculates on your stock's price at some future date." Victor H. Schiller

Excerpt. © Reprinted by permission. All rights reserved.

PREFACE:

Suppose you have farmland that you have no intention of using or selling in the next few years. Would it make sense to rent it out and generate some income? Or suppose you have some cash under the mattress that you don't need immediately. Would it make sense to put it in a money market account and generate some income? By the same reasoning suppose you have a stock portfolio that you don't intend to sell in the near future. Would it make sense to sell CALL options on some of the stocks and generate income? There is no additional risk. You have already assumed the risk of stock ownership. After selling CALL options, if the stock goes up enough your stock gets called (you sell it) at a price you specified. If the stock stays about the same or goes down, the CALL option expires. In either case you pocket the money (premium) generated by selling the option.

This simple idea is available for anyone to use. The problem is that most investors, even most financial advisors, do not understand the advantage of using options to enhance portfolio performance. If the additional returns on your investment seem unreal after you have implemented some of the strategies in this book, great for you. You keep the rewards of your new investment skills and we have the satisfaction knowing that we were able to advance your financial well being.

Edition details

• Publisher: Keller Pub
• Publication date: 2002
• Language: English
• ISBN 10: 0967412811
• ISBN 13: 9780967412818
• Binding: Paperback
• Number of pages: 128