Whirlpool: Big Call Income

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About: Whirlpool Corporation (WHR)
by: The Money Madam
Summary

Earnings are challenged and they have quite a bit of debt.

On the positive side, they pay a good dividend.

The premium alone is over 3% nearly doubling the amount you pocket when you include a full year of dividends.

This call is hard to beat. Expiration is out a little further than I would like but it captures the hefty dividend if this call like 90% of them ends up expiring.

Whirlpool (NYSE:WHR) has a lot of hair. Earnings are challenged and they have quite a bit of debt.

On the positive side, they pay a good dividend. WHR increased its dividend and their revenues are hanging in there despite international issues such as currency.


Look at the income from this call. The premium alone is over 3% nearly doubling the amount you pocket when you include a full year of dividends. If they take the call so be it. We book a gain and get out of stock that has its issues.

I don't think WHR will go belly up but it could with all the challenges in the world. However, I am going to continue to look for income by selling calls against low buys.

M* MoneyMadam

Disclosure: I am long WHR and a bit underwater. I have sold a lot of calls particularly when I add very low.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.