Dress part. There are clothes to wear to work, to wear to church, and then there are clothes to wear when you shop. You want to be comfortable and you do not want to appear to have money. You can be far more effective if you look like price you offer is truly all you can afford.

Never downplay quality or desirability of item you want. If item is no good why do you want it? You need to downplay price of item. You want item, just not at price they are asking. It can be a good idea to mention you have seen it elsewhere for less. However, this can backfire if item is truly one of a kind. Be careful, only a totally uninformed seller will not be aware of scarcity of his item.

Make haggling a two way negotiation only. You don’t want to enter a bidding war with a third individual. This can only cause final price to be higher.

Set a point where you stop. Since you had a price in mind before you began, you should never pay more for an item than price you have set for yourself. You must be prepared to walk away if negotiation cannot get you price you want. Almost nothing is more effective than walking away from a protracted negotiation in which seller has so much time invested. You will be surprised how often you will be called back for another round of haggling.

Now go make Mr. B proud. Get to work saving yourself some money and use it to pay down your debt.

Seems pretty easy doesn’t it? Well it is, when it works. But like everything in stock market (or in life itself for that matter) there is no sure thing.

Any number of things can happen. Here are just a couple of things you have to consider. First off, I would check to see what all analysts are saying about any stock you are about to try this on. Make sure company has a solid dividend history. I would also caution against making play on a stock that is due to report earnings while you are in options period. Also keep in mind that as a general rule a stock will dip in direct relationship to divided paid. Obviously this strategy is not always going to play out as our hypothetical trade did. However, I have had results similar to that as well as some much better, and "yes" some that did not work at all. What makes play less risky than stand alone buy and hold trade is that no matter what stock does, you get dividend and options premium money giving you that much downside protection on a move against you.

I had a number of stocks that I would hold in my account and merely roll over option money and collect dividend on a regular bases, double-dippers, and was very happy not to have stock called away.

I was very fortunate that I had met a broker who became one of my best friends and taught me this method of investing. I strongly suggest that you seek advice of a professional broker; money manager; your attorney; your accountant; your present, past or future wife or husband; your doctor; your heirs, your auto mechanic or anyone else in world that you can think of before you try this or any method of investing. (Okay, I think that covers about everyone.)

To learn more about Covered Call writing, check resources at http://www.TraderAide.com. Good luck and happy trading!

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