Sell put or buy shares while selling calls? Do both!

Have you ever bought shares for long term, only to realise that the stock price tends to drop within the short term right after you bought them?

Have you ever sold a put to earn premium, only to realise that the stock price shoots up so fast, but your gains are only limited to the put premium you collected?

It is hard for us to time the market, let alonein beating the market, it is not possible for us to always buy at the lowest. 

If we are bullish over a particular stock, we can actually buy some of the stock directly, while selling put for the stock at a strike price lower than our entry price. 

In this way, we can use the premium from the sold out to lower our initial cost, assuming the stock price stays about the put strike price, and in any event if the stock price did fall to the put strike price we set, we can effectively lower our average cost. 

We can also sell covered calls to help us to lower our cost further over time.

When the stock price is too volatile in eitherdirection, we can also apply rolling to the options we sold, if you want to prevent yourself from over accumulating the stocks from your sold put, or losing your stocks from your sold call.

In short, the varied strategies we do at the same time (sell put + buy shares with selling covered calls) can:

1. Allow us to have a position in the stock sothat we can gain when it is bullish

2. Allow us to lower our average cost over time

3. Allow us to perform dollar cost average atthe same time.

Choose the stocks that you are comfortableto invest for the long term. With time and the right choice of stocks, we can 

$Tesla Motors(TSLA)$

$Apple(AAPL)$

$Bank of America(BAC)$