Covered Call Recommendation on Humana (HUM) STRATEGY: Look at the October 2011 80 covered call. For each 100 shares of Humana (HUM) stock you buy, sell one October 2011 80 covered call option for a 75.89 (78.19 – 2.30) debit or better. This is potentially a 5.42% assigned return. The ex-date is 9/26/2011 for a $0,25 dividend per share …
Stock futures pointed to a higher open this morning after an optimistic speech by Fed chief Ben Bernanke last week extended investors’ hopes for further stimulus measures by the Fed. Hurricane Irene hit the east coast but largely spared New York City. Major U.S. exchanges will all be open as normal for trading. Since workers from the outlying …
A video from CNBC showing Warren Buffett discussing his thoughts on investing in gold. Would you buy a 67 foot cube of gold or farmland and stocks? This is part of my rationale for investing for monthly income rather than taking a cube of gold. See video below.
INT is currently trading at $37.85, up $2.30 today; rated 5 stars by S&P. STRATEGY: For a long-term trade income investment, look at the November 35 covered call. For each 100 shares of World Fuel Services (INT) stock you buy, sell one November 35 covered call option for a 32.85 (37.85 – 5.00) debit or …
As a reader of this blog, you know we focus on generating monthly income from investing. A favorite and safe way to accomplish this goal is through writing calls on stocks. Done correctly, you can achieve yirlds in the double digits without the worry of a dividend cut or significant price decline. When you hear …
n the past we discussed how to create a monthly income portfolio using puts, covered calls and monthly income dividend stocks. Now, we have teamed with TradeMonster to create a paper trading account so you can follow the trades we place each month in this account. The account has $100,000 in cash and can …
Below is a list of potential calendar call spreads for further evaluation. There is an option to purchase shown in the buy side column. These options are the January 2012 call options. The sell side column shows the option to sell in the July 2011 listing for each stock. All other metrics are based on …
Can you still get a 10% annual dividend yield in today’s market? Yes. We scanned the CEF (closed-ended funds) landscape to find the 5 highest yielding CEFs with monthly distributions. All of these CEFs have an annual yield above 10%. As you would expect, 4 of the 5 CEFs are trading at a premium to …
How many people do you know who have achieved great wealth by holding their stocks for long periods of time? There are a number of these investors who achieved staggering success such as Warren Buffett. However, there are numerous reasons why I prefer income investing including covered calls to buy and hold. “If anything, buy …
It is time to begin looking at the next month (April) covered calls at this time. I have already started a short list of potential trades. This list is most at-the-money and slightly out-of-money calls. I have included the S&P Ranking as well as the volatility measures on the chart. Here is the list. with company …
