Category: Income Investing

  • How to Find Stocks with High Option Premiums

    How to Find Stocks with High Option Premiums

    Stock options provide traders and investors with a lot of flexibility when leveraging returns or generating income. While there are many different strategies, success often boils down to a consistent,…

    Continue Reading

  • What Is a Poor Man’s Covered Call?

    What Is a Poor Man’s Covered Call?

    Covered calls are a popular way to generate an income from stock options, but they require a potentially large upfront investment in the underlying stock. While such an investment isn’t…

    Continue Reading

  • How the Wheel Option Strategy Works

    How the Wheel Option Strategy Works

    There are many different options strategies designed to generate an income. While covered calls are the most popular, traders may also use iron condors, butterfly spreads, diagonal spreads or calendar…

    Continue Reading

  • How to Roll a Covered Call

    How to Roll a Covered Call

    The stock market is inherently unpredictable and even low-risk strategies can be ruined by new information. For example, covered calls provide a convenient way to boost portfolio income, but there…

    Continue Reading

  • How Do Cash-Secured Puts Work?

    How Do Cash-Secured Puts Work?

    Options may be notorious for their speculative use, but many investors use them to generate income or achieve other goals. For example, cash-secured puts provide you with an alternative way…

    Continue Reading

  • Add Covered Calls to Your Dividend Strategy

    Add Covered Calls to Your Dividend Strategy

    Many investors have turned to a dividend strategy as a way to generate income in today’s low interest rate environment. Unfortunately, most high-dividend strategies are relegated to specific sectors, such…

    Continue Reading

  • Generating Income with Cash Secured Puts

    Generating Income with Cash Secured Puts

    Options are often seen as speculative instruments for traders, but many investors use them to generate income. In fact, the most sophisticated option traders use them to reduce risk, limit…

    Continue Reading

  • How Option Greeks Affect Covered Calls

    How Option Greeks Affect Covered Calls

    The concept of a stock option is fairly straightforward: It provides the right or obligation to buy or sell a stock at a specified time and price. Of course, the…

    Continue Reading

  • Starting a Position with a Covered Straddle

    Starting a Position with a Covered Straddle

    There are many different option strategies that investors can use to generate an income. While covered calls generate an income from an existing long stock position, a covered straddle can…

    Continue Reading

  • Generate an Income from Credit Spreads

    Generate an Income from Credit Spreads

    Income investing is popular among investors in or approaching retirement, but there are few good choices during periods of record-low interest rates. Exchange-traded options provide an easy way to generate…

    Continue Reading