Definitely not a beginner here. The stock will not get called away if you're paying attention. I've already explained why using Leaps is inferior. I'll continue to quote what I feel is important.
See above comment. To address the second part of your comment, you are reading these articles incorrectly. These are meant to generate income, I'm not searching for high growth stocks. The section you are looking for is under the tab "Investing Ideas", not "Dividends & Income".
It's not misleading in any way, very clearly explained in the intro of every article. The "annualized" (not annual) number is based on re-writing/rolling to keep premium flowing in. I find leaps to be less effective in a covered call strategy for many reasons, and most call sellers would agree. I'll try to incorporate a comparison from now to show why using leaps will hurt your returns instead of rewriting multiple times per year.
3 Dow Covered Calls: Home Depot, Verizon, IBM [View article]
I stated "The low beta nature of this stock allows us to pick a strike closer to the underlying price." under the IBM heading, but should've clarified for the additional picks in the article. I plan on revamping the goals/guidelines section over the weekend. Hope you are getting some value out of these articles, thanks for the feedback.
Sometimes I let them expire but the goal is for the option to go down to .05 before expiration so it can be bought back and hopefully rolled to keep premium flowing into the account.
Apologies, I calculate that Bid minus $0.05. I listed that in the rules/guidelines part but not the equation definition. It will be corrected from now on.
5 Energy Covered Call Plays [View article]
5 Energy Covered Call Plays [View article]
5 Energy Covered Call Plays [View article]
3 Dow Covered Calls: Home Depot, Verizon, IBM [View article]
3 Tech Services Covered Calls: Level 3 Communications, Eaton Corporation, Equinix [View article]
3 Tech Services Covered Calls: Level 3 Communications, Eaton Corporation, Equinix [View article]
Covered Call: Microsoft, Exxon Mobil, JPMorgan [View article]
((0.43-0.05)/28.83)/87... = 5.53%