KO Covered Calls: Low Volatility, Steady Income, and the Dividend Trade-Off

TL;DR Covered calls on KO produce modest premium, but stacked with the roughly 3 percent dividend they still make a durable income sleeve. KO trades near $84 with a 52-week range of $65 to $84 and low implied volatility compared to tech megacaps. A 30 to 45 day 25 to 30 delta call on 100… Continue reading KO Covered Calls: Low Volatility, Steady Income, and the Dividend Trade-Off

JPM Covered Calls: Generating Income on a Dividend-Paying Megabank

TL;DR Covered calls on JPM turn a dividend-paying megabank into a monthly income stack that combines premium, dividends, and long-term compounding. JPM trades near $334 with a 52-week range of roughly $279 to $343 and about a 2 percent dividend yield. A 30 to 45 day 25 to 30 delta call on 100 shares typically… Continue reading JPM Covered Calls: Generating Income on a Dividend-Paying Megabank

Covered Calls on Dividend Aristocrats: The Income Double Dip Most Investors Miss

Covered calls on dividend aristocrats: stacking premium on top of 25+ years of dividend growth.

Selling covered calls on dividend aristocrats stacks option premium on top of 25+ years of dividend growth. See the math, the rules, and a real PG example.