2024-05-20 09:59:04 ET
Summary
- We've been using options on 3 income-investor favorite names in order to generate option 'income.'
- We utilize cash-secured puts and covered calls, but those with higher risk tolerance could sell naked options.
- Idle cash is earning something these days, which means capital set aside for cash-secured puts is being put to work doubly.
- First, the cash can earn about ~5% in a brokerage account, and then that same cash set aside for the written puts can earn the option premium on top.
Written by Nick Ackerman.
We had three trades that expired this month on last Friday's option expiration. These are some income-investor favorites, which we've been using to generate additional option income in a complementary way. We had written puts on Realty Income ( O ) and Schwab U.S. Dividend Equity ETF ( SCHD ). Both of those expired worthless as they traded above the strike prices we had selected....
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For further details see:
3 Income-Investor Favorites We've Been Selling Options On To Generate Option Income