Tuesday, January 31, 2012

Looking for money!

          Sometimes just waiting and seeing what is happening is the best move an income investor can make. You do not need to buy every day or even every week. I did finally get my Freeport McMoran trade at $45 and change and sold a $50 call but that is old news.

          Speaking of calls; I have a little calculator that I use all the time to calculate the yield I would receive from a given covered call premium (that is the amount of money per share I would receive divided by my cost basis.) The calculator also calculates the gain I would receive if the call buyer takes my stock at the strike price. Finally, the calculator determines the yield on that gain. I find this to be the easiest way for me to quickly enter the data and come up with the answers I need to make an income investment decision.

          We are working to make it a "widget" or "gadget" as they call them in blogger terms so that you too can have the benefit of using such a simple approach. It needs a little tweaking, however, the final version should be up and running soon. Very Truly Yours, TheMoneyMadam
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