Option Income analysis – 2011 Dividend Machines
Income investors, covered calls, as you know, are contracts that pay you money known as a call premium. These premiums can be as little as ten cents a share or as much as several dollars a share. So you see covered calls can provide significant investment income. In retirement, this is very important.
In exchange for receiving the call premium, you give the buyer the right to buy your stock at the strike price of the contract. The strike price is critical because income