Sell covered calls on margin forever?

Discussion in 'Strategy Building' started by crgarcia, Jul 20, 2009.

  1. Sell covered calls on good dividend stocks, on margin.

    Buy a 50% down put (for a few cents, to avoid a margin call)
    Technically a very loose collar.

    My goal is to generate income, to withdraw 5-10% per year, for many years.
    I can tolerate watching my account fluctuate down in value, as long as it generates income.

    I don't see the Fed Funds Rate (margin tied to it) anytime soon for at least 5 years.