Wednesday, October 1, 2014

Chevron - a Dividend Machine

English: A gas station in Chevron Corporation'...
English: A gas station in Chevron Corporation's new trade dress in Redwood City. Note the solar panels on the station canopy and store roof. Photographed by user Coolcaesar on September 28, 2006. (Photo credit: Wikipedia)
We are getting close to buying CVX and selling a covered call.   

At $117 per share, you want about $1.20 per share of call income to boost your income enough that you are willing to risk CVX going down to $110.    To get $1.20 per share, you need to sell a call that expires in January 2015 with a strike price of $125.  That is not quite enough gain for me to risk $117 per share.    So as much as I would like to add to my position and sell that call today, I will wait and keep you up to date.