A covered call strategy is another way to get returns from your portfolio. We’ll explain what a covered call is and how you can profit from one.
If you’re looking for extra income and you feel neutral or slightly bullish about a stock, selling covered calls might be the right strategy for you.
My goal with my different income-focused services is to help my subscribers earn more money than they would by following the old-school types of investment advice. I recommend higher yields in my Dividend Hunter service. For my dividend growth newsletter – Monthly Dividend Multiplier, I do not settle for the 2.5% to 3% yields that […]
Selling call options, referred to as covered call trading, is great fun and when done right, attractively profitable. Your broker will be happy to show you how to get started with covered call selling. What they may not be as clear about is what happens after you sell that first call option. I know from […]
I know that talking about investment yields and returns can be confusing, and actually understanding what happens can be even more daunting. However, we are trying to make money on our money, and understanding potential returns—both as percentages and dollars—helps separate good opportunities from those that are less attractive. If you have dabbled with stock […]
Our covered call recommendations service – Weekly Income Accelerator – is popular with investors who have not previously traded options. Doing covered calls for extra income is a natural extension of the high-yield investing strategy I lead with the Dividend Hunter service. If you are like many who join us, you may quickly find that […]
I often refer to covered calls as the third leg of a balanced, income-focused investment approach. (Three legs because it takes at least that many to make any chair or table stable and functional—the others are cash flow with high-yield stocks like in the Dividend Hunter and stocks consistently growing dividends like those in my […]
Shares of Ford Motor Inc. (F) have been in a nice uptrend since early October and appear to be headed towards $10 and a level last seen in July 2019. The company recently announced an impressive third-quarter with earnings coming in at 65 cents a share on revenue of $37.5 billion. Wall Street was expecting […]
A newly listed company is seeing a lot of unusual options activity. The company is Rocket Companies (RKT), which owns Rocket Mortgages and Quicken Loans. Despite not being around for very long (on the exchange), over 120,000 option contacts traded on one day last week. Most of the activity was on the call side, which […]
Despite plenty of volatility in the market, it hasn’t been any easier to generate income for your portfolio. Yields are still ultra-low for most fixed income instruments. Moreover, many high-yield dividend stocks have slashed their dividend payments. Regarding dividend stocks, buying and holding them is certainly not an unreasonable way to generate yield. The best […]