Do you handle your investments or do you hand that aspect of your life to a professional? Or do you have a professional investment advisor and still dabble with your investments?
I am in the latter category.
If you are like me, have you ever wanted to play for a higher stake? Are you looking for a greater return on your investment? Have you considers options trading?
Granted, I am talking about the kiddie end of the options pool, covered calls.
This is where you sell an option for someone to buy the stock you own at a specific price within a specific time frame. You get the proceeds of the call sale, if the option to buy is not exercised within the time frame, it expires and you get the opportunity to sell the option again.
This way you can increase your return on this investment.
If the option is exercised you have to sell the stock at the option price, which should also garner you a profit. So you are then following you plan of buying low and selling high.
I am aware of a number of people who are doing this type of trading in their retirement account. This way there are no immediate tax implications. For your qualified dollars you do not pay any taxes until you withdraw the funds. So the ups and downs of the funds have no tax implications.