My plan is to buy 100 shares of microsoft, sell 1 call option, and take the premium from writing the option.
What's the downside to this? Aside from Microsoft going down and losing money on my initial investment. Am I missing something?
My ideal outcome would be, someone buys the option and it doesn't print money, I keep the premium and shares and just rinse and repeat.
If it does print money sure I loose out on some profit but I would still make money.
My dad suggested I do 3M instead because they have a higher dividend. And could possibly buy 200 shares and do 2 options.
Would it be better to write this option weekly bi weekly or monthly? Or would the premium be about the same.
Any help would be appreciated
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