Double or Even Quadruple Your Income on This High-Yielding Dividend Stock

If RRD is above $17 when the option expires, call sellers will have to sell their shares for $17. Based on the recent price of $15.88, this would be a profit of 8.6% in one month. You would receive $17 for each share of RRD, plus you would have $0.25 per share for selling the call.

If RRD is below $17 when the option expires, you would continue to own the stock and be able to sell additional calls. Assuming you could sell a covered call for at least $0.25 per share four times a year, you would be receiving income of $1 per share from the options and $1.04 per year from dividends. Combined, these two sources of income provide a return on investment of 12.8% a year, double the yield from the divided alone. If you sold a call for at least $0.25 each month of the year, you could see a 25.4% return, including dividends, quadruple the dividend yield on its own.

The covered call strategy reduces the risk of owning the stock because you would continue to receive income from selling calls even if the stock price falls or the dividend is cut. If RRD moves up, you lock in a short-term gain and can find other income opportunities.

This is a high-income strategy that should appeal to income investors in a low interest rate environment.

Note: Emails are pouring in from my readers: “Up over 60% on average.” “Making about $30,000/year.” “An average $1,300 a month.” “$19,500 in the last six months.” Some have even made over $100,000 this year. If you’re interested in learning how to use options to reduce risk and generate this kind of income, click here.

$1,000 Per Month Trading System

You could collect $1,000 or more per month without buying a single stock. Click here to learn how…