SSO and Zecco

Written on December 11, 2008 – 8:59 am | by admin

In addition to my 3 IRA accounts, I have a non-retirement account at Zecco.  In this account, I have enough funds to purchase 100 shares but not enough to purchase 200 shares of SSO.  I am making bi-weekly deposits to the account.  Until I get enough money for a second 100 shares, I am scaling in very small (4-5 shares at a time).  This is possible because of Zecco’s 10 free trades a month.  Since my orders are all stop limit buy orders, I check this daily.  If I get a big move up in a short time, I will take my profits on the “extra” shares.  This is the only place that income could be generated from a non-covered call strategy.  So far it has worked as I bought 4 shares last Friday at $22 and sold them Tuesday at $27.40.  

I also have stop/limit buy orders all the way down to $14.50 (I think).  $14.50 is where I would expect it to go should the DOW go to 6500ish.  The lower it goes, the more money I am putting to work.  Once I get enough shares for a covered call, I will use my average cost basis as my cost basis going forward.

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