I Just Made This “10% Trade” with Deere & Co. (DE)

A “10% Trade” can be a great way to generate double-digit annual yields from some of the best companies in the world.

As a refresher, this kind of trade involves selling either a covered call or a cash-secured put on shares of a high-quality dividend growth stock.

To show you how powerful this kind of trade can be, take a look at the illustration below.

It’s a real-life example of the income I have generated from making just four “10% Trades” over the past year with the same underlying stock, Deere & Co. (DE).

I made my most recent “10% Trade” with Deere yesterday by selling one June 19, $92.50 covered call for $1.92 per share. I sold this call on the 100 shares that I had purchased for $90.71 per share last year. Even though this new trade will not close until June 19, the income it generated yesterday secured my 10% annual yield.

In the left column I list the dividends I have collected for simply holding the stock. In the right column I list the options income I have collected from selling covered calls on my shares.

CaptureIf all I had done was simply hold shares for the past year I would have generated a 2.6% yield (based on dividends alone).

But by selling just four covered calls I have been able to boost my total income to $9.12 per share, which works out to a 10.1% yield.

That’s more than triple the yield I would have realized had I simply collected the dividend income.

With all of this in mind, if you are the least bit interested in generating double-digit annual yields from some of the best companies in the world, I encourage you to consider making a “10% Trade” today. There are plenty of opportunities available right now.

Greg Patrick
TradesOfTheDay.com

Sponsored Link: In DailyWealth Trader, we have all the tools you need to start generating big income from selling options, including an extensive "training center" that houses thousands of dollars' worth of educational material... daily Q&A sessions... and a large video archive. You can learn more about DailyWealth Trader right here.



Advertisement