Using Covered Calls to Increase Dividend Yields

[t1e2s3ting123]

Hi Alan, I am a new watcher and like what I see in your style, approach, and attention to detail.

[BlueCollarInvestor]

There is a chance of assignment prior to the ex-dividend date if the time value of the premium is less than the dividend distribution. This is more likely to occur as we approach expiration Friday so rolling the call to the following year will decrease those chances later in the contract cycle. Should early assignment occur you will not lose money but you will not generate the dividend income and will make money only on any time value of the original option sale.

Alan

[shannonbradford1]

Alan,

I like your idea on using DITM Covered Call LEAPS. What is the chance of early assignment on ITM longer dated options at ex-div? Do they usually require rolling a couple of months out to avoid assignment? I would love the downside protection but hate to be called away early and lose the income.

Keep the great videos coming.

Thanks.

[hm333333]

Nicely done, Alan, as always...conciseness with clarity...all under 9 minutes. Thanks.