Cautiously trade stocks, covered calls options and cash secured puts options with me for a year. Then you should have a nice total returns trading business.
Bought XOM at $82.25. Sold XOM 2.11.22 expiration $84 calls (delta .26) for $0.36, or an annualized RoR of about 33% if I did the same kind of trade every week for 52 weeks. Dividend yield is about 4.28%, ex-dividend 2.9.22. In IRA. Based on annualized returns, I have a 37% hedge or cushion on the stock in terms of the net debit if I did the same trade every week, which is impossible because prices change.
Jeff, Yes. That is how my XOM and UPS trades would work, I think. I may do these trades today. Both stocks are up today. I've followed your outstanding blog for years and highly recommend it. Thanks for your comment.
Don, With intervening ex-dividends prior to expiration, I enter in-the-money Covered Calls with chance to achieve good annualized roi either way: (1) if assigned early (on day prior to ex-div); or (2) if assigned at options expiration. I recommend doing this in non-taxable IRA account to avoid short-term capital gains. See my coveredcallsadvisor.blogspot.com blog site for many examples of my Covered Calls 'Dividend Capture Strategy'.
Bought XOM at $82.25. Sold XOM 2.11.22 expiration $84 calls (delta .26) for $0.36, or an annualized RoR of about 33% if I did the same kind of trade every week for 52 weeks. Dividend yield is about 4.28%, ex-dividend 2.9.22. In IRA. Based on annualized returns, I have a 37% hedge or cushion on the stock in terms of the net debit if I did the same trade every week, which is impossible because prices change.
Jeff, Yes. That is how my XOM and UPS trades would work, I think. I may do these trades today. Both stocks are up today. I've followed your outstanding blog for years and highly recommend it. Thanks for your comment.
Don, With intervening ex-dividends prior to expiration, I enter in-the-money Covered Calls with chance to achieve good annualized roi either way: (1) if assigned early (on day prior to ex-div); or (2) if assigned at options expiration. I recommend doing this in non-taxable IRA account to avoid short-term capital gains. See my coveredcallsadvisor.blogspot.com blog site for many examples of my Covered Calls 'Dividend Capture Strategy'.