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 you […]
Covered Calls
How to Avoid Panicking When Your Options Trades Look Negative
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 subscribers to […]
Trade of the Week: AAPL
Apple (AAPL) traded a massive amount of options last week as the stock climbed to all-time highs. AAPL options trade on average 1.4 million a day, which is already a huge number. However, on one day last week, nearly 3.4 million options contracts traded. 78% of the contracts were calls and that tends to be […]
How to Calculate Your Returns on Covered Call Trades
I know 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 options, […]
Your First Step To Getting Extra Income From Your Dividend Stocks
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 […]
Validation of Using Easy Covered Call Strategies
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 […]
These Calls on Kraft Heinz (KHC) Could Give You a 100% Return
Shares of Kraft Heinz have more than doubled since falling below the $20 level in March of 2020, recently hitting a 52-week peak north of $44. While analysts remain tentative on shares given the huge run up, Kraft Heinz remains a solid long-term investment. The company recently reported its fourth straight earnings beat after announcing […]
These Could Be the Hottest Dividend Stocks Right Now
Over the last six months, different high-yield sectors have caught up with the broader market’s gains kicked off a year ago. Higher share prices mean lower yields for income-focused investors, and with most of these stocks, current yields are markedly lower than they were a few months ago. I have recently reviewed exchange-traded funds (ETFs), […]
One Way to Earn Extra Cash from Financial Stocks
The economy may be improving, but last week’s Federal Reserve statement made it clear that there will be no tapering anytime soon. In other words, the Fed will continue to purchase bonds, and interest rates will remain near zero. It’s not all that surprising as the Fed has made it clear they don’t want to […]
When Did Covered Calls Become Underrated?
Covered calls are one of the most popular investment strategies used by both retail and institutional traders. For retail traders, covered calls are easily accessible and don’t require a substantial amount of maintenance. For institutions, covered calls are beneficial both because they can scale into the billions of dollars and because they have long-term portfolio […]