Sunday, October 21, 2012

Covered Call Income October 2012

Covered Call Income on Dividend Machines October 2012
            Listed below are the covered calls I currently have working on 2011 and 2012 dividend machines.   I think more posts on this area of income investing will be useful and I will start today.   
Conservative income investors should learn to use covered calls for additional income. When you own dividend machines you are, by definition a conservative investor.   When you employ covered calls to boost income on those very companies, you are a savvy investor.

This weekend October 2012 options expired.   The options you sold with an expiration date of 10/20/2012 were either exercised which means the buyer of the option actually did buy your stock or the option expired which means you still own the stock.

If the option buyer exercised the option and bought your stock at the strike price, I certainly hope you made a reasonable profit.  If the option expired, you still own the stock and will continue to receive ever increasing dividends and you may have an opportunity to sell another call on your shares.  I like all those possibilities.

Here is a list of the covered calls I have working on dividend machines.  If you want to know about the company as a dividend machine, I have added a link to the original post(s.) 

MSFT  - Dec 2012 strike $32 Posted 10/2012
ABT – Nov 2012 strike $67.50 Posted 12/2010  Posted 3/21012
CVX – Dec 2012 strike $115 Posted 6/2012
CVX – Dec 2012 strike $120
DBD – Feb 2013 strike $35 Posted 10/2012
COP – Nov 2012 strike $60 Posted 5/2011
MCHP – Jan 2013 strike $36 Posted 11/2010 Posted 2/2012

Very Truly Yours,