Wednesday, April 20, 2011

Up market - covered call income?

          Income investors, one would think we could make a little extra money today by writing covered calls.  I found a 23 call on INTC in August for a $.31 premium but I would like a little more than $.31.  I have looked at every dividend machine in our list and I could not find a call that I like.

          Next, move is to look at all your "almost dividend machines" to see if you can make a little extra money with that trade.

          I am always worried when the market is up in April but I cannot find a call.  That suggests to me, the ultimate income investor, that the potential call buyers out there do not believe more upside is to come.

          We have to stay vigilant because May is just around the corner and you know what they say about May?  Sell in May and go away.

Very Truly Yours,