Walt Disney (DIS) is a bit dicier because the stock has done very well this year and jumps up from time to time. Still, it fits the criteria.
With DIS stock at $69, you can sell the Jan 70 call for $1.27. In this case, you’re getting more than 3% on the premium plus Disney’s 0.275% dividend at year’s end. There’s a bit more risk of the stock getting called away here, but it’s worth it, in my opinion.
As of this writing, Lawrence Meyers was long BRK.B and DIS. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at email@example.com and follow his tweets at @ichabodscranium.