TL;DR Covered call dividend capture stacks two income streams — option premium and the cash dividend — on the same 100 shares. The expiration must fall after the ex-dividend date so you remain shareholder of record long enough to collect. Use slightly out-of-the-money strikes (delta 0.20-0.30) to minimize early assignment risk in the dividend window.… Continue reading Covered Call Dividend Capture: Double Your Income From Dividend Stocks
TL;DR Covered call screener criteria filter thousands of stocks down to a tradable shortlist of high-quality income candidates. Start with market cap above $3 billion, average daily option volume above 1,000, and bid-ask spread under 5 percent. Filter implied volatility 25 to 60 percent and IV rank above 30 to ensure premiums are paid above… Continue reading How to Screen for Covered Call Candidates: The Criteria That Matter Most
TL;DR Covered call adjustment strategies let you reposition a short call when the stock moves up, down, or sideways without abandoning the income trade. The four core adjustments are roll up, roll down, roll out, and roll up-and-out, each addressing a different market move. Roll up to recapture upside, roll down to harvest more premium… Continue reading Covered Call Adjustments: How to Manage Positions When the Market Moves
TL;DR The best time to sell covered calls is 30 to 45 days to expiration, on high implied volatility days, immediately after a strong up move, and never into a known earnings announcement. Monthly expirations (third Friday) deliver the tightest spreads, deepest liquidity, and the best risk-adjusted income for most retirement portfolios. Weekly covered calls… Continue reading When Is the Best Time to Sell Covered Calls? Timing Strategies That Work
