Covered calls on dividend stocks for long term cash flow

By xiexgp@gmail.com, October 31, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

I had an opportunity (for about 2 minutes) to talk with Jon Najarian about options and portfolio growth. He told me that for his daughter’s college fund he owns MO, sells calls monthly, and receives a dividend for a steady income. He undoubtedly owns a boatload more shares than I could but do any Irregulars use this strategy? Would you be willing to share your thoughts, results? Thanks!

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4 Comments on " Covered calls on dividend stocks for long term cash flow"

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bwd1up
Irregular
181
bwd1up
November 2, 2013 11:41 am

Hello, I am interested as well. I just finished watching another Stansberry pitch teasing a secret algorithm and newsletter Retirement Trader. The claim is he will send you the exact strategy and positions to take on a regular basis, and futher claims he is 129 of 129 consecutive picks. Naked Puts?? Has this been discussed in previous issues here – i’m a week old irregular. The Retirement Trader is pricey – the offer is 3K and at a 25% discount. Any information would be appreciated!

sonetirot
Member
2
sonetirot
November 4, 2013 4:19 am
Sell Naked Put could be making money for you every month. I agree on that. I had been doing that every months. However stock selection is the most important and pick enough that it will not make you go to the poor house. Just enough to make money little by little. My rule is to pick the safest stock that you understand and know it could not go down 10 or 20% over night with bad earning report. Selling put could make bankrupt if you are not careful when the whole market collapse (temporary) like 2008 and 9/11 etc.. Even… Read more »
harvey manhal
Guest
0
harvey manhal
November 3, 2013 1:09 am

Don
t let covered calls go deep in money. Roll them before too deep in money

harvey manhal
Guest
0
harvey manhal
November 3, 2013 1:17 am

I have been selling puts and am very happy.
Say stock is $60.25.
Sell maybe 58 strike—premium goes into your cash account.
Could sell 59 or 60 strike and get more cash immediately.
If stock goes down to say 57 and you do not want to buy stock, roll the 58 strike to next month or maybe 57 strike–all depends on the new premium
Been doing weeklies options on DDD and FB.

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