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3 Income-Generating Covered Calls on Blue-Chip Stocks

Use options to generate income on quality stocks, at low risk

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Exxon Mobil

xom-covered-callsExxon Mobil (XOM) is a great play these days. With Warren Buffett’s Berkshire Hathaway (BRK.B) having taken a stake, it has created some nice volatility in the stock, and that means higher premiums.

XOM reports earnings on Jan. 27; January options expiration is Jan. 22. Thus, if you sell Jan calls, you might see some run up or down right around expiration. If you’re nimble, consider selling the Jan 95 call for $2.17. That’s a 2.3% return, and you’d also collect a 0.65% dividend payment in the interim.

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