Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries This Dow 30 Fund Yields 6.4%, Trades for 95 Cents on the Dollar By: Contrarian Outlook August 04, 2021 at 05:00 AM EDT As dividend yields and interest rates dropped in recent decades, income investors looked for ways to generate cash flow from stocks. Selling (“writing”) covered calls is one strategy that has gained attention. It is certainly a conservative options strategy that most income investors think they should do. The math is compelling. Here’s how it works. We would buy a dividend stock like Exxon Mobil (XOM) for its $0.87 per share quarterly payout (a 6% yield). Then we would write a covered call with a “strike” price just above the stock’s current level. For example, XOM trades below $60 as I write.… Read more Read More >> Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
This Dow 30 Fund Yields 6.4%, Trades for 95 Cents on the Dollar By: Contrarian Outlook August 04, 2021 at 05:00 AM EDT As dividend yields and interest rates dropped in recent decades, income investors looked for ways to generate cash flow from stocks. Selling (“writing”) covered calls is one strategy that has gained attention. It is certainly a conservative options strategy that most income investors think they should do. The math is compelling. Here’s how it works. We would buy a dividend stock like Exxon Mobil (XOM) for its $0.87 per share quarterly payout (a 6% yield). Then we would write a covered call with a “strike” price just above the stock’s current level. For example, XOM trades below $60 as I write.… Read more Read More >>