- Buy the Stock
- Write the Option
- Collect the Dividend
This strategy will in no way make an investor instantly rich but it will, over time, produce some outstanding results. As to whether this is the only way, the answer is "certainly not." There may be better ways, and there may even be easier ways, but if there are I'm not aware of them.
"I believe that through knowledge and discipline, financial peace is possible for all of us."
I buy great quality securities that are optionable, sell out-of-the-money covered calls, and then sit back and collect the dividend payments. It's a strategy based upon the knowledge gained from years of trial and error and the discipline that comes from years of trading and investing. It's a strategy that works for me. So I hope this strategy continues to work for a very long time. I could use the money.
Good Luck and Good Trading.