Printing Money Legally

I bought 100 shares of APOL for approximately $5,800. I turned right around and sold a call option for the stock and received approximately $450 in premium for a cash on cash return of ~8%. The call expires in May so this is an 8% ROR for 3 months. If I am able to continue this then I stand to make a 31% rate of return for the year.

The $450 for three months equates to $150 a month in cash flow. In order to be financially independent, I need to generate an additional $1,100 a month. (Currently I am at $1,400 with expenses of $2,500 a month.) Based on these returns I would need an additional capital investment of $42,533 ($1,100/$150 = 7.33, multiply this by $5,800 and I get $42,533.)

Instead I could use the $42,533 to pay down the liability of on our four-plex ($132,000) and refinance it at a lower payment of $533.53 for an additional cash flow of $258 a month. (current payment is at $791)

Obviously the fastest route to financial independence is to bulk up to $42,533 in covered call stocks. Of course our LTD re-prices in 5 years so ideally we need to knock it out ... so $175,000 in 5 years? This equates to $35,000 a year which is very doable for us which more than guarantees financial independence by 35.

So ...

1) - I legally printed money by buying a stock and then turning around and writing a covered call against it ... $450 to be exact ... an 8% ROR for 3 months.

2) A new goal - build up approximately $42k in covered call stock over the next year = financial independence by February 2011.

3) Another new goal - pay off LTD over the next 3 years = heightened financial independence by February 2013.