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Thus, (and since CSP and covered calls are mathematically equivalent) wouldn't this make covered calls the preferred strategy since you can pick the price you buy at?

I don't know...I was just answering taowave's question.

-On the whole 400K, yes. -Not sure of a target return. -I could handle being down 2 percent if the market is unchanged.

I'm not selling puts on my whole nest egg. Many of the ideas here are very interesting, but also very complex for an options newbie. I do some low-risk cash secured puts, here and there, but likely will just dollar-cost average into some things while doing the occasional CSP and/or covered calls.

Let’s say 5% for the sake of discussion.

Thanks to all for many ideas.

Thanks, I have dabbled some with cash secured puts, but nothing crazy risky.

Yes, great point! I've read about stocks and investing since I was in high school. The people at my workplace know nothing about investing. Anytime investing, stocks, economics, or retirement plans are brought up, I will offer some elementary knowledge (such as "What is a Roth IRA? or "What...

I have dabbled in cash-secured puts occasionally. Not cleared for naked puts, nor do I have or use margin.

Why purchase deep in the money calls?

I don't want to trade options for a living. Just interested in generating a little extra income on stocks I am interested in owning. I realize there is no such thing as a free lunch.

Is 2 million even remotely feasible? I’d like to believe it but can’t imagine that with my conservative mindset.

It’s more than I ever thought I’d accumulate and more than anyone in my middle class family ever had, so I’m very conservative with it.

Is there any recommended strategy to use options to protect a large portfolio? I’ve read about LEAPs but heard they are expensive. In my case, I’ve been way too conservative and have missed the greatest bull market in history at age 43. Nearly all assets in cash. Even though I follow the...

What if your view is that you would be interested in owning at stock or ETF at 5% or 10% lower than today's price? Let's say XYZ is at 50. If you would be willing to buy it at 45, why not sell at CSP with a strike at 45 and collect a little premium?

They are ETFs.

What is the general consensus about Currency Shares for foreign exchange exposure? I don't have a foreign exchange account (use Fidelity for stocks/options). I don't consider myself (nor do I intend to become) a forex trader. If one wanted to buy the Euro or the Canadian Dollar, is there...

One final followup: Since selling covered calls and naked puts are mathematically equal, why would one choose one over the other?

OK, Thanks for the clarifications. Guru, I do like the idea of selling calls against stocks I own. Just looking at conservative moves, not anything where I'm expecting to create giant profits. I feel like selling calls against a stock I own can give me some extra income and downside...

I do understand, however, by buying the stock first and selling the covered call aren't I able to collect dividends in the meantime and then sell another covered call against it after expiration? Wouldn't that be a difference or advantage versus just a naked put (which I can't do anyways as I...