Q: I am retired and am more interested in capital preservation and income. I try to hold mailly blue chipd...banks, ENB, BCE etc. I have no experience with puts and calls but have been reading extensively and playing in a practice account. I also own BMOs ZWU etc. I intend to start selling covered calls at or near the money as a way to increase my income. I have assumed that the income from selling puts and calls effectively lowers my cost base but cannot find anywhere that confirms this so my questions are:
- Am I correct
- Given the volitivity ( I have no idea whether to be bullish or bearish right now), is this the right market to be doing this in?
Thanks
Don
- Am I correct
- Given the volitivity ( I have no idea whether to be bullish or bearish right now), is this the right market to be doing this in?
Thanks
Don