Advanced? Yes!
Best left to experienced investors? Definately!
High Risk? Yes and no!

If used to crank up risk via the leverage, then yes, risky. They can be used to REDUCE risk.

So here’s a question for the forum:

Which carries the most risk (ignoring reward for the moment)?

1/ Buy 1000 shares

2/ Write 1000 ATM put options

3/ Buy 1000 shares and write 1000 ATM call options

Cheers

This is all true. Thats why I suggest Cottles book.

I also suggest avoiding covered calls unless under certain specific circumstances.

There is also a 4th catagorie (which are a small minority of course). People who make a tidy profit from options thanks very much.

… oh and Steve,

The PM is good

And I reckon the live chat could be a good idea too…easy and cheap to set up.

Hey Rob,

Why lease options in preference to wraps? Any key reasons or is it because the word “wrap” has been sullied by a sensationalist media?

Cheers

Yeah Rob,

It’s different this time :-o

The trouble is Eistein was no economist.

In the early ’30’s both property and real estate did indeed s**t itself at the same time!

In other words, the big “D” (if/when it happens) will do it.

Plenty of credible economists are talking about that vey possibility…but not the respective wall street and R/E industry cheerleeding squads. You won’t hear these views very often on boomberg or cnn.

Plenty of people prospered during the great depression, just not those who weren’t prepared for it.

Cheers

No Del, but certainly worth a look based on what Rigby has shown us.

<<Canada is my Number 1 destination for a holiday…(ONE DAY) !!>>

You won’t be dissappointed! Pass on the US, go straight to Canada.

Cheers

Great stuff Alf,

That sounds more like the reality of NM and how to do it successfully…or as you point out, any business.

$80,000 a month within 2 years is a big number though. Is that verifiable?

Rob,

I would never entertain a verbal offer. (other folks might) Offers must be in writing with a deposit before I dip my hand.

What would you do in this instance?

Oh, and here’s something for those obsessed with wealth priniples and $40 million mansions.

“One final paragraph of advice: Do not burn yourselves out. Be as I am — a reluctant enthusiast… a part-time crusader, a half-hearted fanatic. Save the other half of yourselves and your lives for pleasure and adventure. It is not enough to fight for the land; it is even more important to enjoy it. While you can. While it’s still here. So get out there and hunt and fish and mess around with your friends, ramble out yonder and explore the forests, climb the mountains, bag the peaks, run the rivers, breathe deep of that yet sweet and lucid air, sit quietly for a while and contemplate the precious stillness, the lovely, mysterious, and awesome space. Enjoy yourselves, keep your brain in your head and your head firmly attached to the body, the body active and alive, and I promise you this much: I promise you this one sweet victory over our enemies, over those desk-bound men with their hearts in a safe deposit box, and their eyes hypnotized by desk calculators. I promise you this: You will outlive the bastards.”

–Edward Abbey