Dollar Cost Averaging

Discussion in 'Strategy Building' started by Corso482, Jun 18, 2003.

  1. For those people with long-term investing goals, would dollar cost averaging into an index (QQQ etc.) with naked puts at regular intervals be a good idea? This is instead of just buying out right.

    You would only actually aquire shares when the market goes abruptly lower (a good thing long term). While it goes up, you just collect income.

    But would this underperform the market in the long term because you'd be missing out on the way up?

    Actually, this would be kind of expensive to do monthly. One option contract of QQQ is like $3k, right?