Low-Risk Covered Call Money Adds Up

Selling out-of-the-money covered calls is a great way to earn weekly passive income. However, the payouts tend to be small.

Depending on volatility and strike price, you may only make a few extra dollars per week. But, this money adds up — especially when you reinvest it into revenue producing assets.

Today’s article looks at several low-cost, stable dividend stock opportunities you can buy with your covered call profits.

What Can You Buy With A Dollar?

Many out-of-the-money covered calls pay you $1 — $2 per contract. This isn’t much, but it can help you acquire several dividend penny stocks.

If you can generate $3 — $4 per week flipping low-risk options, you can buy one share of Armanino Foods of Distinction ($AMNF). This company currently pays an annual dividend of $0.12.

After one year of covered call selling, you’d be generating an extra $6.24 in passive dividend income.

And, you’d have acquired $185.12 worth of Armanino stock.

What Can You Buy With $10?

Trading slightly riskier options can often net you a higher ROI.

Setting a lower strike price, or selling covered calls near a corporate earnings date will…