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    Covered Calls vs. Dividends: The Best Passive Strategy: Financial Freedom, #235
    Covered Calls vs. Dividends: The Best Passive Strategy: Financial Freedom, #235
    Covered Calls vs. Dividends: The Best Passive Strategy: Financial Freedom, #235
    Ebook93 pages1 hour

    Covered Calls vs. Dividends: The Best Passive Strategy: Financial Freedom, #235

    By Joshua King

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    About this ebook

    I love passive income. Besides my deep respect for earning money in my sleep, it also helped me retire early from my job.

     

    There are many ways to leverage passive income in your daily life, but I want to focus on two ways you can start today.

     

    Dividends are profits companies pay you for being shareholders. Covered calls are a type of options trading in which you own the underlying stocks.

     

    Selling covered calls presents a riskier scenario but can generate higher returns than dividend investing.

     

    Ultimately, using a combination of both of these techniques will position you for a healthy, wealthy retirement. You can even sell covered calls using your dividend stocks. Amazing!

     

    LanguageEnglish
    PublisherJoshua King
    Release dateMay 25, 2024
    ISBN9798223678762
    Covered Calls vs. Dividends: The Best Passive Strategy: Financial Freedom, #235

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      Book preview

      Covered Calls vs. Dividends - Joshua King

      Table of Contents

      MILITARY FAMILY INVESTING | Joshua King | Home of the Free PDF

      Covered Calls vs. Dividends

      All Right Reserved Military Family Investing | 01  Covered Calls vs. Dividends

      02  Sleep Easy: Make Money 24 Hours A Day

      03  The Magic of Dividend Growth Investing 2

      04  The Magic of Income Investing 2

      05  Stock Market vs. Bond Market vs. Options Market

      06  The Magic of Cash Flow

      07  The Pros & Cons of Closed-End Funds

      08  Dividend Investing 105: Add a Safe Options Trading Strategy

      09  Selling Covered Calls for Passive Income

      10  Become a Capitalist: Retire Early

      Try Something New -Free PDF Download

      Sign up for Joshua King's Mailing List

      Also By Joshua King

      MILITARY FAMILY INVESTING

      Joshua King

      Home of the Free PDF

      www.militaryfamilyinvesting.com

      Covered Calls vs. Dividends

      The Best Passive Strategy

      01  Covered Calls vs. Dividends

      02  Sleep Easy: Make Money 24 Hours A Day

      03  The Magic of Dividend Growth Investing 2

      04  The Magic of Income Investing 2

      05  Stock Market vs. Bond Market vs. Options Market

      06  The Magic of Cash Flow

      07  The Pros & Cons of Closed-End Funds

      08  Dividend Investing 105: Add a Safe Options Trading Strategy

      09  Selling Covered Calls for Passive Income

      10  Become a Capitalist: Retire Early

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      PDF of the Month: Don’t Gamble with Retirement 12 (Free 460-Page PDF)

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      Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)

      Real Estate: Financial Independence through Real Estate 4 (Free 112-Page PDF)

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      Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article.

      All Right Reserved Military Family Investing

      01  Covered Calls vs. Dividends

      If you want to retire in America, you must build a stream of passive income. There are many ways to generate income in your sleep; however, understanding these streams is vital to building wealth.

      Two ways to generate a return on your invested money are selling covered calls and investing in dividend stocks.

      Both options offer advantages and disadvantages, so combining both will maximize your returns.

      Happy Financial Independence Day 3

      Investing in dividend-paying stocks. I am a massive fan of dividend investing. I use two methods to invest in dividends: dividend growth investing and income investing.

      Of these two methods, I prefer income investing, where I aim to obtain a 10% return on my invested capital in the form of dividends.

      Over the last five years, I have built a portfolio that pays me $2,000 monthly in dividends. I love waking up to see more money in my account than when I went to sleep.

      Selling covered calls for passive income. If you like a little more risk, trading options can juice your returns.

      Calls are a form of option contracts where you predict that the price of an underlying stock will move upward. For example, if the cost of AT&T is currently $17, you can buy or sell a call option with a strike price of $18.

      Cursed Retirement? What is Sequence of Return Risk?

      One call option contains the right for the owner to purchase 100 shares of the underlying stock if the price increases past the strike price. The owner has the right to purchase those stocks but doesn’t need to exercise that option.

      Selling covered calls is a safer form of trading options. In this strategy, you own 100 shares of the underlying stock. You sell a contract to a counterparty that gives them the choice to purchase your shares if the price increase passes the strike price.

      For your efforts, you will receive a premium for selling your contract. You keep the premium whether the counterparty takes your 100 shares or not. In a perfect

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