Our three legged income investing stool includes dividends, interest (not much there at this point in time) and covered call premiums. Today was a perfect day to write some calls. Here is a list of the calls I sold today for a very nice amount of income.
LMT December 85 for $1.15
FCX November 62 for $2.40
FCX November 64.50 for $1.78
BG October 77.50 for $1.05
QCOM October 62.50 for $1.03
Covered calls are easier than you think if you have carefully picked the underlying stock. Each of these stocks pays a dividend with LMT and QCOM increasing their dividends every year. All are solid companies. LMT is one of our dividend machines. These calls will provide a minimum of 10 percent gain if they take my stock.