Covered Call Writing with Qs and Diamonds: Double-Digit Returns on Ready-Made Portfolios

Rating:
Summary: VERY USEFUL & PROFITABLE BOOK
Review: A friend of mine who took a college class about covered call writing taught by the author recommended this book. It was a real eye opener for me, as I hadn't had any exposure to covered calls before as is probably true of most people. I have enough assets to comfortably invest in the stock market, but not enough to diversify adequately through individual stocks. The discussion about the Nasdaq-100 Index Tracking Stock (QQQ) and the Diamonds-Dow Jones Average Tracking Stock (DIA)solved this problem for me. At a time when I have no confidence in mutual funds, I was able to use these two Exchange Traded Funds as the foundation for my investment portfolio. They ideally suit my risk profile. The ability to write covered calls on them was icing on the cake. I've written two sets of calls so far, so now I can appreciate the simple beauty of this investment strategy through firsthand experience. It worked out great. I also plan to study the chapter on technical analysis in more detail to help plan timing decisions in the future on whether to write out-of-the-money or in-the-money covered calls. Fortunately the book does an excellent job of making all of this completely intelligible for an investor at any level of understanding about the markets. The covered call feature creates an immediate stream of income and provides protection in case of a downturn in the market. I highly recommend this book for any investor who is looking for a better way to achieve investment goals rather than just owning mutual funds or stocks alone. Owning the Qs and Diamonds is a great way to participate in the stock market and get instant diversification through one or two securities. Also, the income from covered call writing is just what I needed to supplement my other income sources.