Skip to main content
No. of Recommendations: 1
The only reason one should be doing in-the-money covered calls is for INCOME!

If someone else bot MGI in the $2 - $3 range for appreciation in share price, I would say Well done! T

To the folks that sold me those shares in the $2 - $3 sympathies, I hope you did well with the receipts from the sale.

When writing in-the-money covered calls against dividend paying stocks, you need to figure in the ex-dividend date. Otherwise, what your expecting yield might be greatly reduced if the shares are called early.

Consider risk/reward.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.