How to make 5 X 1.2% (bank CD) return - Reply to 南湖居士

1. sell long-term, in-the-money naked puts on companies that have good

fundamentals (undervalued and stable ones), then close your position

when opportunities arise and do it again and again: 10%++ annually with

little risk, if you want higher return you need to take higher risk and

there are ways of doing it - the key: you need to have the ability to

analyze the "fundamentals" of a company.

2. sell out-of-the-money covered calls on the same: 10%++ easily

3. buy less than 10 years old RE in my area in good school district,

then renting out: 6%-7% return on all cash deals (10%++ on mortgaged

deals).

These are currentely all my cash cows. Please note, these strategies

only applies in the current environment and you need to adjust your

strategy as the environment changes. If you get it and know how to

adjust, then you will always have a 5 X 1.2% return, at least.