Another Options Strategy for Income Investors

Writing covered calls is one of my favorite ways to generate additional income from stocks already owned, especially if they also pay dividends. That’s because you basically get two cash flows from one stock — without adding any additional downside risk at all. However, if your goal is collecting additional income without having to sell the underlying shares, the ongoing run-up in share prices hasn’t provided an ideal environment for writing covered calls. That’s why today I want to talk about another options strategy that can also generate income without undue risk. As you’ll see, this approach is perfect for anyone who…