when 2 buy tls, page-3

Kaingaroa.

I use stocks to provide an income both inside and outside of super.
I am not expert with Tls or the market in general, but have found writting call options against stock that I own has worked for me.
The following is what I did with TLS and you can work out the returns

21/5/12 bought 40,000 TLS @ $3.54
22/5/12 bought 30,000 TLS @$3.59
23/5/12 bought 30,000 TlS @ $3.59

Then sold 3 lots of European call options @ strike prices of $3.61, $3.71, $3.71
out to Dec 12, with European calls, the buyer can't exercise early to nab the divvy

One would expect the share price to rise up to ex divvy date in august then drop back, then I have hopefully 4 months for it to show any upward movement to the strike prices
What this little play returns for my super fund is

Immediately received the call option premium of $11,000
Collect in September the divvy of $14,000
An entitlement to franking credits of approx $6,000 off next years tax or refund back.
Hopefully some capital gain if the strikes are hit of $10,000 maximum, if not
do it again to capture the march divvy.
If the price drops back I have the premium as downside protection, and my resource & energy stocks should recover. Even though these are down I have continued to collect the rent off them by careful management.

This is not ment as advice of what to do, just to show that there is more in life than hoping for some capital gain.

Best of luck with your trading