Product Description

A novel explaining the options strategy of selling covered calls. Most investors are not aware of this conservative risk free strategy that can generate a 25% annual return. The book explains with easy to understand examples, first how to pick the right stocks and second how to sell options on those stocks.

The basic principle involves buying solid companies as a basis for selling options and generating a steady stream of income.

Stock ownership is, of course, not risk free. But once that risk has been assumed, as millions of investor have done by owning stock, then there is no additional risk in selling call options on that stock. In fact by generating income you are mitigating the downside risk of stock ownership.

Wayne Kimball has retired to south Florida on an investment portfolio not generating enough income to support retired life. By chance at his local Rotary Club he meets his Finance Professor from 30 years back. Professor Rob Graham, now retired, has been very successful. As they renew friendships, the Professor takes Wayne step by step through the process of building a portfolio and generating an income of 25% by selling covered calls. The authors use real life examples to explain the "Money Tree" strategy.

Product Details

• Amazon Sales Rank: #102826 in Books
• Published on: 2002-05-14
• Number of items: 1
• Binding: Paperback
• 128 pages

Keller Publishing
"The Money Tree" is a fascinating novel with a rewarding message: a money making strategy for the average investor.

From the Inside Flap
A Proven Money Making Options Strategy for the Average Investor "You've got a few stocks in your portfolio you can't bear to part with. While you're waiting for that former high-flyer to take off, you can collect some money from it - charge the stock rent for taking up space in your portfolio. By using a strategy called covered call writing, you get your cash up front from someone who speculates on your stock's price at some future date." Victor H. Schiller

About the Author
Ronald Groenke moved from Minnesota to the sunny gulf coast community of Marco Island after twenty-five years in the communications systems and software development environment. He has been active in the stock options market for fifteen years and developed the concepts and techniques provided in the book. On Marco, he and wife, Jean, are active in their church and busy entertaining family and friends who visit from the north.

Besides options investing/advising, other activities include personal computing, Rotary, walking, boating, and traveling.

Ron can be reached at robgrahamphd@aol.com

Wade Keller, a native of Greenville, Georgia, has retired from careers as Owner/Manager of a CPA Firm and College Professor. Currently he is a writer, primarily a ghost writer of personal memoirs.

Wade and wife, Sue, live on Marco Island, Florida where a main activity is spending time with their five grandchildren, ages one to thirteen.

Other than writing and grandkids, interests include Toastmasters, Rotary, chess, reading, travel, national politics, and walking on the beach at sunset with Sue. The couple has recently learned the rewards of writing covered calls.

Wade can be reached at wade@kellerpublishing.com

Customer Reviews

Well worth a read.
I consider myself a very experienced, professional investor. While I agree w/ the comment by another reviewer that "risk free" is too strong a word - I really liked this book. The book is very readable and communicates a basic yet powerful option writing strategy. While I stress that each investor must understand the risks involved in every trade, I also believe that this book is worth a read.

Risk Free????
I have not read this book, but I had to comment on its title: I would hate for a novice investor/trader to be taken in by the promise of "risk free" options trading. Synthetically, selling a covered call is identical to selling a naked put, with exactly the same risk/reward profile. The fact that lots of investors do it, and are allowed to do so by their brokers, has a lot more to do with the brokers' risk tolerance than its risk profile for the individual. Yes, you can increase your returns with this strategy, but please, learn how to do it from someone who will tell you the truth about the potential outcomes.

All reviews appear to be written by the same person
If it so good why would SOMEONE bother writing the same review over and over again. I have written many of covered calls and 25% is a bit lofty for a return. Look into more honestly reviewed/written books for details/strategies and see what you can do experientially. Start small and watch what happens to your returns on an annualized basis. Have an exit strategy before you start.