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.
