Options are one of my favorite income-generating strategies, and I’ve found a lot of success in aiming for a controlled, specific target. Maybe it’s the easy math, and maybe it’s the allure of big, round numbers, but either way, I like using $1,000 as a benchmark for each set of trades.
Covered calls can work for investors in a few ways. But for our purposes, if you hold a long position, and simply feel the stock isn’t going to move much in the near-term, you might consider selling covered calls to generate income off of some or all of the position.
Here’s a look at a few covered calls to consider: