Title: Call Options for Retirement Income: Using $1.8M IRA to Generate $5,000 Monthly Tagline: Unlock consistent income from your IRA with strategic call option writing. Problem: Recently widowed, Sarah, 68, inherited $1.8 million in a Traditional IRA. She seeks a low-risk strategy to generate $5,000 monthly income to supplement her Social Security. However, she is worried about depleting her retirement savings too quickly and doesn’t want to actively manage a portfolio or deal with market volatility on a daily basis. Sarah wants a solution that minimizes risk to the principal while providing a reliable monthly cash flow. Solution: By strategically writing covered call options on a portion of her IRA portfolio (e.g., on 500 shares of a dividend-paying stock worth $100/share), Sarah can generate income without selling the underlying assets. The Call Option Calculator enables her to quickly assess the potential income from writing different call options, considering factors like strike price, expiration date, and premium received. Comparing this income potential with different strike prices and expirations helps Sarah fine-tune her strategy for optimal returns within her risk tolerance. ROI: By writing covered calls generating an average premium of $1 per share per month on 5,000 shares ($500,000 worth) within her $1.8M IRA, Sarah can generate $5,000 monthly, achieving her income goal. Over a year, this equates to $60,000 in additional income. This strategy allows her to maintain ownership of her assets while boosting her income by 3.33% annually on the $1.8M, offering a risk-managed approach to income generation. Using the calculator can help avoid incorrectly priced options and potentially losing hundreds or thousands of dollars on poor trades. Description: Learn how to leverage your $1.8M IRA to generate predictable monthly income using call options. This calculator helps you assess potential returns and manage risk effectively, turning your retirement savings into a reliable cash flow stream. Category: Client Service Calculators: Call Option Calculator, Put Option Calculator, Tax Equivalent Yield Calculator, Bond YTM Calculator