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GLAD a Nice Income Generator

|Includes: Gladstone Capital (GLAD)

Buy and Hold Plus entered a position in GLAD with the intent of using it as a dividend play for a month.  Then the opportunity to write a covered call came along, and Buy and Hold Plus used that to generate more income.  Now, GLAD announced its May and June distributions.

Those distributions will total $0.14 and both will be paid out in June.  Of particular interest to Buy and Hold Plus is how the June distribution has an ex-date of June 18, which is BEFORE the options expiration date for June.

So, Buy and Hold Plus will get the $0.14 from the two distributions and has already booked $0.25 in premiums for selling a covered call.  That's $0.39 in income on a stock that Buy and Hold Plus paid $6.62 for.  What this means is that in five weeks, Buy and Hold Plus will receive income of around six percent.

That kind of gain is a nice little pop and it's BEFORE any capital gains!