Thursday, December 5, 2019

XOM call activity today

Exxon Mobil

Bought this unloved energy stock and sold calls against it. Love the dividend: yield 5.08%, as I am an income investor, but don't love the price action.

Today's strategy will deliver additional income from the call premium.  If XOM is called away, I also will realize a capital gain.  If XOM is not called away, I will keep this lot in my portfolio provided the dividend is safe.  If the price action improves, I may be able to sell more calls for more income.

M* MoneyMadam

Wednesday, December 4, 2019

Adding to LEG and selling calls

As I monitor call activity, I look for stocks that I already own.  Stocks that pay a good and increasing dividend.  Stocks that have a good history of EPS and Revenue growth.

Leggett and Platt, symbol LEG, is one of those stocks.  Let's first look at the recent fundamentals.


You can see clear evidence of revenue growth, EPS (earnings per share) growth, and dividend growth.   And in the next table you will see call option potential.

I have a significant position in LEG but I added today and am selling calls against that new position.  I picked a strike price that nudges up to the 52 week high of just over $55.00.   If they take it, I still have my original position.  If they don't take it, I get to pocket both the dividend and the call premium.

That is my strategy to retire with income that grows; and I am sticking with it.

M* MoneyMadam
Disclosure:  Long LEG with calls on part of the position

Monday, December 2, 2019

Covered call activity on WMT

This call is strictly for short term cash generation.  WMT's high is $125.  I am buying today and selling this 47 day call to boost income plain and simple.   If I lose WMT, that is ok by me. If I keep it, I will cash the dividends and I will continue to sell calls.  You have to hurry if you want to capture the 12/5 dividend. 

M* MoneyMadam
Disclosure:  Long WMT with calls on some of the position

Covered Call Activity MSFT

A call I executed today.   MSFT is a quality stock with a low yield.  I use covered calls to make up the difference between what MSFT yields and what I need.

M* MoneyMadam
Disclosure:  Long MSFT with covered calls

Thursday, November 14, 2019

TGT sell call on WMT earnings

I like Target, symbol TGT.   Presented below is another example of how to use a rival's earnings to take a short term position before your company reports.   Walmart had good earnings but in the after market it is only o.k.  But WMT's business is perceived as being positive and that helps it's closest competitor Target.

Income investors are looking for a position that provides call premium income from selling (a.k.a. writing) a call; and we want the quarterly dividend; and we want a capital gain should we have our stock called away.

An eight day call that meets a number of an income investor's goals.

What happens if in the next 10 days or so the stock tanks on it's own earnings and you are stuck with it?  That is when you want to make sure you can stomach holding a dividend stock over a longer period of time than 10 days.  TGT is an okay hold by me at this time.  - Goal met:  conservative income investment.

I will risk losing it and I will risk keeping it.   It is all about income.  Goal met:  income with out without the call being assigned.  If it is assigned, capital gain is realized;  Goal met; capital gains.


Usually posts about calls are yesterday's news.  Call buyers and sellers know there are few values more volatile than call premiums.   I am writing up a call that I will try for tomorrow.  November 15, 2019.

M* MoneyMadam

Good income investing.   Disclosure no position but expect to add if the conditions warrant.

8 Day trade NVDA

I recently wrote a post about using short term calls in an effort to earn 8% a year from a combination of the call premiums and the dividends.

One stock I mentioned in my previous post was NVDA.  I have a $200 call expiring this Friday.  Based on today's reaction to their earnings, I think that trade will provide all benefits I had hoped for in a very short term.   In this market short term is appropriate.

I did it again today.  I bought at just over $208 and immediately sold the $220 call that expires a week from Friday, 11/22/2019.

So the point is, I wanted 3 calls per year on NVDA that generate at $4.50 per contract.  But in just two weeks, I have cashed a $3.44 call today and $ 2.30 call a week ago.  I am on track!

November 22, 2019 $220 call on NVDA

Will the positive effect of NVDA's earnings carry it for another 8 days? Let's see what happens.

M* MoneyMadam

Disclosure:  Long NVDA with calls