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Covered Call Writing with Qs and Diamonds: Double-Digit Returns on Ready-Made Portfolios
Covered Call Writing with Qs and Diamonds DoubleDigit Returns on ReadyMade Portfolios Author:Paul D. Kadavy "Covered Call Writing With Qs And Diamonds: Double-Digit Returns on Ready-Made Portfolios" is not just another new book about covered call writing. It is a highly focused and readily understandable educational tool with a unique easy-to-follow implementation program. It is designed for investors who either do not have the time or the desire to r... more »esearch individual stocks and administer such a portfolio, yet who seek an opportunity to achieve double-digit investment returns by using covered call writing. Ownership of the ready-made portfolios available to you with the Qs (ticker symbol QQQ: the 100 largest companies on the Nasdaq) and Diamonds (ticker symbol DIA: the stocks composing the Dow Jones Industrial Average) eliminate the need for stock research. And, the call writing choices you have available to you with them are far broader than any individual stocks, making them the perfect equity investment to use in conjunction with covered call writing. The book delves deeply into the subject of how to obtain double-digit returns from both out-of-the-money calls and in-the-money calls. It also provides short-term technical analysis tools to assist in guiding market forecasts and making appropriate call writing decisions. On May 3, 2003 after the annual meeting of his company, Warren Buffett (Chairman of Berkshire Hathaway) said to Maria Bartiromo of CNBC: "If you own equities, over the next twenty or thirty years youll get a reasonable return...maybe its 6%, maybe its 7%. People who expect 15% a year are doomed to disappointment." If you believe that "The Oracle of Omaha" is right about a slow-growth market for decades to come, then everything that you need as an investor is here for you in this book to develop and implement a covered call writing program using two of the worlds most liquid, highly diversified equity portfolios. THE BOOK PROVIDES: * The case for using the Nasdaq-100 Index Tracking Stock (tracks the top 100 Nasdaq stocks in market capitalization), also known as the "Qs" or "Cubes," and the Diamonds Trust Series 1 (tracks the Dow Jones Industrial Average), known simply as Diamonds, for total or substantial portfolio composition. This allows investors to achieve significantly more equity ownership diversification than from shares in individual stocks. * Details on the unique features of these two highly liquid and popular Exchange Traded Funds (ETFs) that make them ideally suitable for no hassle, easy decision covered call writing to assist in reaching consistent double-digit investment returns in a more conservative way than a buy-and-hold equity strategy. * A detailed turnkey implementation program for call writing with the QQQ and DIA, including "out-of-the-money" calls and "in-the-money" calls, both of which can yield solid double-digit returns, when and how to effectively use them. * Discussion on call expiration date selection to fit your needs, including the advantages of shorter-term and longer-term expirations. * A presentation of technical analysis tools to assist investors in making short-term decisions on when to write calls, and which type of call to write. * Use of Microsoft® Excel spreadsheets to assist in reviewing covered call writing selection alternatives and tracking your results so that the best decisions for you are reached to achieve your investment return goal. * Use of margin, if appropriate for you, to potentially almost double the returns from covered call writing on these ready-made portfolios. * Details about brokerage accounts, with special emphasis on the use of online discount brokerages for quick, very low cost execution of trades. Web sites for brokerages, charting sources and other technical information are provided. * Presentation of the tax information you need to understand and administer the income tax aspects of covered call writing. This includes deferring taxation of income until a later tax year while enjoying the use of the income now. With interest rates so low and a scarcity of acceptable investment alternatives available to investors, covered call writing on diversified portfolios such as the Qs and Diamonds may offer one of the best possible opportunities to achieve double-digit investment returns in the slow-growth market we seem sure to encounter ahead.« less