Covered Calls, Dividends & Passive Income

Would you buy a “risky” stock if you could get a 40% discount off its current share price? That’s what you can get with some of the high-flying stocks listed on Options Buddy.com.
I came across this site while doing some reading online. Many of the stocks listed on Options Buddy are what you would [...]

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So as I wrote in my previous post July Covered Calls Part I, I had a not so favorable Covered Call trade with STLD. I learned a lesson and need to keep moving on. Just on a side note STLD posted record profits on July 22nd and a second quarter net income increase [...]

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Well, my second go-round with covered calls was a scary one. As I mentioned in my June Results post Steel Dynamics (STLD) took a huge tumble. I bough at $40.02, pretty much the top, and from there it dropped like a stone. I am still long term bullish on steel stocks. [...]

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I’m on my second month of tracking my passive income. I had a lot of my dividend paying stocks hit this month so these results will not be repeated in July. So here we go:

June 2008

Interest Income: $8.77

Dividends: $116.04

Covered Call Writing: $438.05 (see below)

Total $562.86

Looks good right? Wrong!! STLD had me on [...]

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So my June 19 Microsoft Call (.msfqb) expired out of the money (i.e. the closing price was below the strike price). MSFT closed at $28.55 my option strike price was $29.00. I was hoping to get called out. The stock did get above $29 for a short period of time, but just couldn’t hold on. [...]

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In an effort to generate additional cash flow from some of the stock I own, I decided to try writing a covered call. I have been doing some reading on the subject and it is a good way to earn addition income on stocks especially in a stagnant market such as this. I’ve looked for [...]

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I am a novice at this so my initial strategy will be very conservative.
As I mentioned in my Results for May-2008 post I wrote a covered call on some Microsoft stock I owned as a way to generate some additional income. I selected Microsoft because I was thinking of selling my shares anyway. I’m short-term [...]

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