The Money Tree: Risk Free Options Trading

The basic principle involves buying solid companies as a basis for selling options and generating a steady stream of income.

Stock ownership is, of course, not risk free. But once that risk has been assumed, as millions of investor have done by owning stock, then there is no additional risk in selling call options on that stock. In fact by generating income you are mitigating the downside risk of stock ownership.

Wayne Kimball has retired to south Florida on an investment portfolio not generating enough income to support retired life. By chance at his local Rotary Club he meets his Finance Professor from 30 years back. Professor Rob Graham, now retired, has been very successful. As they renew friendships, the Professor takes Wayne step by step through the process of building a portfolio and generating an income of 25% by selling covered calls. The authors use real life examples to explain the "Money Tree" strategy.

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All Customer Reviews
Average Customer Review:
0 of 0 people found the following review helpful:

Well worth a read. , 2008-02-17
I consider myself a very experienced, professional investor. While I agree w/ the comment by another reviewer that "risk free" is too strong a word - I really liked this book. The book is very readable and communicates a basic yet powerful option writing strategy. While I stress that each investor must understand the risks involved in every trade, I also believe that this book is worth a read.


3 of 7 people found the following review helpful:

Risk Free????, 2006-04-27
I have not read this book, but I had to comment on its title: I would hate for a novice investor/trader to be taken in by the promise of "risk free" options trading. Synthetically, selling a covered call is identical to selling a naked put, with exactly the same risk/reward profile. The fact that lots of investors do it, and are allowed to do so by their brokers, has a lot more to do with the brokers' risk tolerance than its risk profile for the individual. Yes, you can increase your returns with this strategy, but please, learn how to do it from someone who will tell you the truth about the potential outcomes.


11 of 18 people found the following review helpful:

All reviews appear to be written by the same person, 2003-06-26
If it so good why would SOMEONE bother writing the same review over and over again. I have written many of covered calls and 25% is a bit lofty for a return. Look into more honestly reviewed/written books for details/strategies and see what you can do experientially. Start small and watch what happens to your returns on an annualized basis. Have an exit strategy before you start.


4 of 6 people found the following review helpful:

A Very Good Primer, 2003-06-11
I found this book to be very interesting and powerful in that it not only provides a simple covered call strategy but a stock selection method that complements the overall strategy. The book gives any one the basics to set up a conservative covered call portfolio that should provide a comfortable income. You can order a set of CD's that implements the book's basics and the CD's are very reasonable.
I have set up my IRA account to implement the covered call/ stock program set forth in this book.


7 of 12 people found the following review helpful:

It works!, 2003-05-13
Over the last five years, I've examined hundreds of schemes for making money in the stock market. Now, I don't want to say anything bad about all those schemes, but I will say this: The concepts in The Money Tree actually work as advertised! I am retired, and need to make my meager resources last out my lifetime. My lack of success in the market had me ready to put my money in a 2% savings account and hibernate. But then I read this book. It has literally changed my life.

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