In a flat to bullish market, most call writers will sell an at-the-money call on the stock they own. the rationale for selling an ATM call is that they have the highest premium in terms of time value. Of course, the option seller can sell at any strike price. What should the call seller do …
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As we approach the end of the September option expiration cycle, the Get Rich Monthly Income Plan had a great month for investors. In January, we kicked off the perpetual covered call strategy. For those who are new to this concept, let me share the rationale of this income investment. This strategy was created to …
Covered call trade on Expeditors International of Washington, Inc. (EXPD). Expeditors International of Washington, Inc. (EXPD) , today announced that its Board of Directors has declared a semi-annual cash dividend of $.25 per share, payable on December 15, 2011 to shareholders of record as of December 1, 2011. STRATEGY: Look at the December 2011 42.5 covered call. For each 100 shares …
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This is a covered call trade for monthly income on Kohl’s Corp (KSS) using stock and call option with optional protective put. Covered Call Strategy: Look at the November 2011 50 covered call. For each 100 shares of Kohl’s (KSS) stock you buy, sell one November 2011 50 covered call option for a $47.37 (50.17 …
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This is a defensive in-the-money covered call recommendation on Apache Corporation setup as an income investment. Covered Call Strategy: Look at the January 85 covered call. For each 100 shares of Apache Corporation (APA) stock you buy, sell one January 85 covered call option for an 80.08 (94.63 – 14.55) debit or better. That’s potentially …
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