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3 ‘Forever Hold’ Stocks, 3 Ways to Make Income

These conservative covered calls generate income with blue-chip stocks that you'd probably want to hold anyway

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Covered Calls on Exxon Mobil (XOM)

Exxon Mobil XOMExxon Mobil (XOM) is one of my favorites in this category. I’ve long talked about Exxon’s place in the world and Wall Street as long as the world needs oil — and that’ll be for some time to come.

Exxon is trading above $101 right now. The June 27 $102 call sells for $1.35. If XOM stock gets called away, you get a 1.34% return for a five-week holding period. That might not sound like much, but it translates to a 13.9% annualized return.

Since Exxon Mobil isn’t expected to report earnings until late June, you could even sell the July $105 call for 71 cents, just to goose the returns a little bit more and capture a large capital gain if called away.

The covered calls here are easy, conservative plays.

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