Latest / Dividend Investing with Fexingo: Income Stocks, Yield, and Long-Term Cash Flow Portfolios
How Dividend Investors Can Use Options for Extra Income
In this episode, Lucas and Luna explore how dividend investors can generate extra income by selling covered calls and cash-secured puts on their existing holdings. With the Fed funds rate at 3.62 percent and the 10-year Treasury yield at 4.56 percent, many dividend stocks are yielding less than bonds. Lucas explains the mechanics of a covered call using Coca-Cola (KO) at $81.34, showing how a 2 percent premium on a monthly call can boost effective yield. He also discusses selling put options on high-quality companies like Johnson & Johnson (JNJ) to earn premium while waiting to buy at a lower…
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