Quote Originally Posted by Punt2Win View Post
Writing covered calls. Google this. Much more simple than it sounds. Take a chunk of cash, buy a solid stock or ETF after researching and understanding it, write calls every week or two with the click of a mouse, there's your income.
Help me understand this better. Covered calls should return 1-2% in call premium each month on decent stocks right? So you'd need a fuckload of cash to actually make any real return.

Is there any way to borrow say through a protected equity loan or similar and "loan" your package of shares that you then write calls on? You could have a long term put option to protect the downside.

I'm not knocking the strategy, but it doesn't replace an income until you're at least $500K in stocks.