: If the stock price drops to your target, you are "assigned" the shares at that lower price, effectively reducing your cost basis by the amount of the premium you already pocketed. 4. Minimize "Hidden" Costs
: These allow you to buy shares directly from a company. This is often the least expensive route for long-term investors, though you may forfeit control over the exact trade timing.
Even with $0 commissions, other factors can eat into your returns: The Basics of Investing In Stocks
: Once you own a stock, you can enroll in a DRIP to automatically use dividends to buy more shares, usually with zero commission. 3. Lower Your Entry Price with Options
: By selling a put option at a strike price lower than the current market value, you collect a "premium" (cash payment).