The Stock Market May Cut My Grass
By Jim Bauer
@porwest (91088)
United States
July 11, 2021 4:27pm CST
There is a little trick in the markets called "covered call options contracts writing." It is a tool investors, like me, use to generate income whenever it is needed for whatever purpose I want.
Basically, I own a stock. I want to earn a premium from that stock, but I do not want to sell my shares.
I pick a contract date that offers the best premium possible, with a "strike price" on the contract that allows me to offer to sell my shares at a specified price by a specified date.
The intent is to choose a strike price that will not occur. That way I can simply collect the premium for the contract and not have to sell my stock.
I always pick a stock that is already in the "black," that way if the contract is exercised, even if I am forced to sell my shares, I still make a profit on the stock AND still get to keep the premium I collected.
I won't get into much more detail than that. The bottom line is I am just collecting money. Owning shares of stock allows me the opportunity to offer to sell my shares at a specified price by a specified date to someone who wants my shares...
And they pay me for that opportunity.
I am getting tired of cutting the grass. So is the wife. And so, I have considered that maybe next year we will hire this out. I have estimates between $40-$50 per cut and trim. The cutting season is approximately 16 weeks, and so this would incur a total cost of $800 on the high end for the season.
I have a stock that will offer me a premium of $2200. More than enough to cover the cost of the cuts, and have a little left over for something else. Including adding shares to that stock or another.
Or just having some fun.
Most of the time when I spend money this is one of the ways I do it. I don't use MY money. I use other people's money.
If the stock market can cut my grass, I think this is a good deal. You didn't think I was actually going to pay for it, did you? lol
11 people like this
8 responses
@kaylachan (69844)
• Daytona Beach, Florida
12 Jul 21
Using other people's money can be lots of fun. Why pay for something, when you don't have to? It's funny, my husband enjoyed mowing the yard when we first bought our house. He still enjoys going outside and spending most of his day out there. Especially after a long hard day at work. I know he'll continue to mow the yard for as long as possible, but the enjoyment factor has begun to wear off.
1 person likes this
@kaylachan (69844)
• Daytona Beach, Florida
21 Feb 22
@porwest es, this is very true. I wonder how many know this?
1 person likes this
@kaylachan (69844)
• Daytona Beach, Florida
22 Feb 22
@porwest That's very fair.
1 person likes this
@porwest (91088)
• United States
22 Feb 22
@kaylachan Considering most people are poor? I would say very few.
1 person likes this
@NJChicaa (119649)
• United States
11 Jul 21
@porwest We have different opinions about pretty much everything: food, politics, money, etc. Somehow we still manage to remain friends. 
I would think that a man who spends a couple of hours collecting quarters from grocery store carts would want to save the $50/week on a lawn service. But you do you. I will hire someone to mow/edge the lawn when I eventually buy a house. That is a boy job.
I would think that a man who spends a couple of hours collecting quarters from grocery store carts would want to save the $50/week on a lawn service. But you do you. I will hire someone to mow/edge the lawn when I eventually buy a house. That is a boy job.1 person likes this
@moffittjc (121604)
• Gainesville, Florida
12 Jul 21
Well, you got the grass part figured out, now you need to put other people's money to work to pay for that pool of yours. More specifically, to pay for the cost of operating and maintaining that pool.
1 person likes this
@moffittjc (121604)
• Gainesville, Florida
22 Jul 21
@porwest It is. It goes something like this:
If I have $20 and my wife has $5, then my wife has $25. And somehow I'll still end up sleeping on the couch!
1 person likes this
@moffittjc (121604)
• Gainesville, Florida
15 Jul 21
@porwest Well, if the wife is happy, then consider those pool expenses an investment, not a money pit! lol
1 person likes this
@renicemae (4883)
• Philippines
14 Jul 21
That's a nice strategy. I have some stocks too. My only way of increasing funds is through capital appreciation and selling but like you, i dont want to sell my stocks yet. Have some dividend each year but its too small.
Havent tried what you are doing but would like to try if there's an option in the platform.
1 person likes this
@lovebuglena (44552)
• Staten Island, New York
12 Jul 21
Why do they charge so much to do the lawn or any other gardening around the house?
1 person likes this
@LindaOHio (178877)
• United States
12 Jul 21
Sounds good. We can't cut our grass anymore and get our 1.25 acres done for $30 by the kid across the street. Have you ever considered a riding mower? Much more fun to cut the grass that way...but I would go for someone else doing it; and your plan sounds like a good one. Good luck.
1 person likes this
