If you own stocks—any stock—sell calls, generate cash and protect your downside.
If you get called out, buy it back.
If you do not want to be called out, buy back the call you sold and sell another one with a later expiration date.
There is something specific I have in mind…
I’m in Berlin right now. The weather, as expected, is awful. Everyone is wearing boots. I trudged around the city and asked a lot of questions.
Verdict: Uggs are back.
While the old, standard design still appears to be king, the trendier new styles are helping to boost sales and attract a younger clientele.
The parent company of Ugg, Deckers Outdoor (DECK), was savaged but is now relatively stable despite market conditions.
My thought is simple: Buy the shares and, regardless of when you read this, sell the $45 call for this month.
You can make a lot of money in a week.
If you hate selling in-the-money calls, shame on you—but sell the next strike up.
This post originally appeared in mainstreetinvestor.com.
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