I have for quite some time planned on creating a blog about my TFSA and only focus on one stock at a time.

With the focus on stock at a time the goal is to generate the best return based on cash flow for the stock at the same time looking to add more if the price of the stock should fall.

Some rules:

1) The stock must be option traded.
2) One stock with a target sell price in mind “before buying it”
3) The company needs to be a medium to large company.
4) Buy more shares if price declines by 10% or more measured from purchase price.
5) Restrict the new buy to a “lot” vs an odd lot purchase.
6) Attempt to sell the shares at 10% over the average buy price.

Option side
1) Use covered calls to generate a better return from the stock.
2) Cover calls premiums are to be at least equal to the stock’s quarterly dividend.
3) Look for the best option price on either the US or Canadian option exchanges.
4) Don’t fret if the stock is called away.