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Use Options to Earn Premium on These 3 ‘Forever Hold’ Stocks

Low-risk options for income on stocks you can hold forever

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Chevron (CVX) Options

chevron-cvx-stockFor Chevron (CVX) stock, which currently trades at $114.60, you can try both of these options.

Right now, the March 28 $115 call can be sold for $2.05. I like this trade a lot. First, you pick up a 2.1% return when you factor in the 40 cents you  get by selling at $115, and that’s a roughly 23% annualized return. I also like it because you’ll be out of the trade before Chevron reports earnings in April, and if you are holding CVX stock around April 11, you get paid $1 per share in dividends.

On the naked put side, you could sell the March 28 $114 Put for $2.13. The same situation applies with the dividend if the stock gets put to you or if you buy it in the interim.

It’s your call: It depends on whether you think CVX stock will be up or down by expiration.

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