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Big-Time Income on 3 Big-Time Stocks

Expensive stocks yield big covered call premiums

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The beauty of trading options on high-priced stocks is that you can generate a big premium payout. The other great thing is that, if you choose a solid company, you can choose options set to expire many months out. The longer your contract period, the higher your premiums will be.

covered calls naked puts income
Source: Flickr

I’ve used this technique to great success over the past few years. The opportunities aren’t always there, but when they are, it’s a good idea to grab them.

Here’s a look at three companies I’m tracking for options plays because of their high-priced stocks. In this case, I have options for both covered calls and naked puts — how you choose to act should depend on what you already own/are willing to buy, and how much risk you’re willing to take on.

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