I recently had a one-hour zoom meeting with one of our members, 44 years old, who wanted to know how to invest a lump sum of money for income. We went over the six habits of Monday Morning Millionaires, and he knows that to prosper, he merely needs to practice these habits.
Investors can make additional money by writing (selling) covered calls and you can see what Rosi and I plan to do today when the market opens at 9:30 AM today.
Our core portfolios hold nothing but 50% SPDR S&P 500 ETF Trust (SPY) and 50% money market (TDB166). Warren Buffett would approve.
At the closing bell last Thursday (Friday was a holiday) the market price of SPY was greater than our strike price and our shares were called away. We have placed orders to buy back an equal number of shares which were called away when the market opens today. That will take place in less than half a second with commissions so low that we can ignore them!
Once we acquire the shares, we will write covered calls on our SPY holdings at $403, which will allow us to benefit from $2.00 per share growth if there is any, expiry date this coming Friday, April 9 (SPY C 05APR21 403.00)
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