π Covered calls on dividend stocks
π― 15β20%/yr target
π‘οΈ No trade more than 5% of your account
π Full track record on my site
β οΈ Not advice
I sell covered calls on quality stocks and journal every single trade publicly β entries, fills, the math, no hindsight.
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That closing line nails it: the story is a narrative, the cash flow is a fact. Guidance raised to $2.40 with about $18 billion in free cash flow, and the stock still sold off on the fourth carrier headline and lost the $22 floor. Sitting at $20.94 with a 5.3% dividend, and December $20 puts paying for assignment at $19.64, the cushion here is real.
Running this as a covered call: long 100 $T @ $22.07, short the Jan '27 $20 call, net $19.40/share, ~16.8% annualized max if called away. ITM so there's real cushion: $2.67 premium banked, $19.40 breakeven - T can fall 12.1% before I lose a dollar. My X post on this one: https://t.co/Mfg8pL0AsB
I journal my trades on Substack.
Filled: bought 100 $T at $22.07 after today's -10% SpaceX-spectrum-panic drop, sold the Jan'27 $20 call against it. Net debit $19.40.
$0.60 edge if called away + $0.2775 January dividend = 16.8% annualized over 98 days.
We've seen this movie β same fears took T to $19.89 in July and it bounced. Breakeven $19.40 sits just under that low.
I split it this way. If it ran back over $400 and the only roll available costs a debit or forces a strike I do not really want, I let it get called away and count the premium plus the sale as the win. I roll only for a credit, to a strike I am still happy to sell at, and when I still want the shares for income. Rolling just to avoid assignment is how a clean trade turns into a stuck one.
That chart is the part that gets me. The quarterly dividend has roughly doubled from $0.75 in 2017 to $1.48, so that $740 a quarter on 500 shares is not a one off yield spike, it is a long raise streak sitting behind it at a 4.28% yield.
Running this as a buy-write: long 100 $PEP @ $124.06, short the Dec '26 $115 call, net $112.75/share, ~16.8% annualized max if called away with the December dividend. My X post on this one: https://t.co/LUU40ZvJn1
I journal my trades on Substack.
$PEP buy-write π₯€
Buy 100 @ $124.06
STO Dec 18 '26 $115 call
Net debit: $112.75/share ($11,275)
Order placed (GTC).
Called away at $115 β +$2.25/share = 2.0% in 72 days β 10.1% annualized
+ December dividend ($1.48) β another 1.3%
Max total: 3.3% β 16.8% annualized
Breakeven $112.75 = 9.1% downside cushion from the $11.32/share of call premium.
PEP 37% off its $197 high, 4.8% yield, 54 straight years of dividend hikes. Getting paid to wait.
That traffic point is exactly the right one to watch Thursday. Comps built on +4.2% traffic tell a very different story than comps built on price, and if they hold the 4 minute handoffs while the lobby gets fuller, that is a real turnaround, not just a guide beat.
Running this as a covered call: long 100 $SBUX @ $98.88, short the Sep '27 $100 call @ $12.45, net $86.00/share, ~19.0% annualized max if called away with the four quarterly dividends. My X post on this one: https://t.co/oXC5IBlGuF
I journal my trades on Substack.