Option Trading (Renting Stocks) a.k.a. Covered Calls

This blog site is to chronicle my transition from a landlord of real estate to a landlord of stocks. In addition to renting real estate I now also rent stocks to others through the use of Naked Puts and Covered Calls. This is called options trading. I have been able to collect rents of between 1% - 8% per MONTH by renting out the stocks that I own and in some cases even before I own them. The best part is I don't have to deal with ANY tenants or ANYBODY's Problems!

Tuesday, April 28, 2009

Trade - 4/28/09 - ADP

STO (3) Naked Put - ADP May 09 @ $34 for $1.05 each. Net Premium $313

Looking for another good ancher for the trading portfolio and decided on this one. ADP has paid and increased dividends for over 25 years. At this price it is already almost a 4% dividend. This is one that I really hope gets put to me.

2 comments:

KevinApril 28, 2009 at 11:38 AM
take a look at BWP May 20 puts
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Chris SApril 29, 2009 at 11:13 PM
Not much option volume on that one.....
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Option Trading (Renting Stocks) a.k.a. Covered Calls

Tuesday, April 28, 2009

Trade - 4/28/09 - ADP

2 comments:

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