How to Yield 14%-Plus on These Stocks

The strategy is known as a covered call, and it's blessedly simple. You sell ("write," in options parlance) call options on a stock you own. When you sell the call option, you get paid a premium up front. If the stock has fallen below the option's strike price at expiration, the premium becomes much like a dividend—a way of getting paid for holding your shares. If the shares have risen above the strike price at expiration, you still keep the premium, and you must sell your shares at that price. In this way, covered calls are a great way to guarantee yourself near-term income, in exchange for giving up some upside if the stock happens to take off in the short term.... Read more