strategies like dividends/interest/writing options on stocks, so they don't have to ever tap into their bankroll to live.

seems like their usual investment strategy is to stake other degens and pray it pays off.

I'm fairly positive, with as little as $100k in stocks you can easily generate at least 5 - 10k per month in cash for living expenses, without being an active stock trader.

Agreed. Anyone that has more than $100,000 and busts is careless.

lol at easily making 5%-10% a month...

Heres one simple example, it does come with some risk (if the stock goes in the shitter), but it's very easy.

All numbers are real time from Ameritrade...

Today the stock Inspire Pharmaceuticals sells for $6.72 a share....so you buy 1,000 shares for $6,720.

Then you write 10 covered call contracts (100 shares each) on those 1000 shares for a Feb Strike of $7.50.

The calls sell for $0.80/share, so you've just made $800, if the stock goes up to $7.51 and gets exercised you get an additional $790.

So if the option expires worthless, you get $800 which is 12% on your money in one month.

if the option gets exercised you get $800 + $790 = $1,590 or 23.6% on your money in one month.

Now if you want less risk, just wait a couple weeks and do the trade then....it ain't rocket science.

if its this easy why doesn't everyone quit their jobs. If you can guarantee investors 20% a year (which is much less than the 60-120% a year you claim that is easy) you would easily become a millionaire.

My other question would be why arn't you a millionaire yet doing this. Its not hard to gather 10 friends and easily get over 100k.

Just seems to easy to promise such a high return when no one else in wallstreet can.

I'd gladly give you 20k in a second if you could show me a low risk way of making 1k-2k interest a month and give up a hefty commision.

I just did show you a low risk way. You can buy less volatile stocks and sell the calls, you can just wait until a few days before the calls expire and do this.

For one thing, most people are afraid of the stock market, for another they don't even know what stock options are. I told my dad about covered calls and he told me..."I don't know enough about investing to do that stuff", and he's a certified financial planner.

Writing covered calls isn't without risk, so I don't do them with all my cash, they also have a limited upside...you could buy a stock, sell the call option on them and the stock could go up a ton and you'd miss out and the big upswing, so you have to be happy with the return you're getting.

And I disagree that 10 friends are going to loan anyone $10k, my friend started a company and asked for investors; only me and his dad were willing to pony up $10k each for a share of the company. I wish I had given him more, the return has been pretty good.

Most people are too afraid to take a chance, and are broke.

As far as being a millionaire, I only make a few extra grand a month doing this stuff, which I either reinvest or spend...it takes a LONG time to save up $1 million.

I guess whwta I want to know is what is the actual risk. I could easily gather several hundred k from friends. Most of them have at least 20k in retirement funds which garner no where near 50-100% interest per year. People would kill to easily make that sort of return. My uncle is very knowledgeble in stocks and probably has well over a 1 million in retirement savings invested yet I'm sure he doesn;t make anywhere near what you claim. Which is why I'm skeptical.

Not every trade goes perfectly, sometimes the stock goes down in value. So in the example above if ISPH goes down more than the value of the option you lose money. So the longer the time between the day you sell the option and the day it expires, the more risk there is.

Whether the stock goes up or down you still get the money on the option you sold.

what is the long term ROI on these deals then?

I'm being 100% honest when I say you would easily be a millionaire if you could offer clients a 50% interest deal for 1 year. If you really can make this I'd hire you in a second and pay you very well.

The only problem is if the market goes in the toilet, covered calls are great if the market is basically flat or going up, but if the market collapses covered calls will lessen the loss but it's still a loss.

if you want to set up an online brokerage account and I let you know what trades I make and you can ghost them, that'd be cool with me, then you could see for yourself.

sounds good, I'd like to get more knowledge anyways. Plus I have money floating online at moment that i do not want hitting bank account until 2011.

5% to 10% MONTHY return?? Are you serious.. those days are long gone.. that is unless you are making very risky investments like options etc.. These investments would be more risky then playing poker and could alone kill your bankroll. You would need investments closer to 1million to generate 5k to 10k per month. Most banks are only paying 1-3% on savings accounts so this would still require investments in stocks, bonds and potentially commercial paper and then you would still need to turn it a bit to pull out the monthy amount..

That said I know of many pros that keep most of their bankroll in safety deposit boxes. Not because they dont want to invest... but because they dont want Uncle Sam to know how much they are really making. Almost every pro I know doesnt report the real total of what they make, especially if they are cash game players..

h

:LOL

Stock Market knowledge fail

My stable (6 players in 2009) netted me almost a 400% yield. My savings account netted me 1.65%

The key is to do some research and make sure they are playing the games that they can easily beat, and avoiding what lost them their bankroll before they had to come to you for a stake. It's a very simple concept.

Nice, now that's a nice roi.

Why the hate for Ameritrade? I only make 4 or 5 trades a month so I don't really need anything more robust.

because they don't have real time. only top ballers have access to real time. there are different levels of access are granted to different parties, and certain levels are not distributable.

I get free level 1 real time quotes, Level 2 would be nice but I don't really need them.

One covered call I'm thinking about:

Tivo:

Cost $9.60 per share, option = $1.00 @ $10 strike.

= 10.42% return in 1 month...not bad.

May also double up on ISPH.

and some others to look at, each over 5% for 1 month:

CSIQ
sell $26 = 7.1%

MU
sell $10 = 5.2%

TXT
sell $22 = 6.17%

AMD
sell $9 = 6.67%

UAUA
sell $14 = 7.5%

Made the TIVO trade...if the option expires = 12.82%, if it gets exercised = 11.44%.

so who says you can't make 5 - 10% a month on your money?