Tuesday, July 19, 2011

Covered Calls for more income

          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.

  1. LMT December 85 for $1.15
  2. FCX November 62 for $2.40
  3. FCX November 64.50 for $1.78
  4. BG October 77.50 for $1.05
  5. 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.

           This is good income investing folks.

Very Truly Yours,


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