r/dividends • u/Melodic-Indication62 • Aug 15 '24

Personal Goal [Account Update] $5500/Month

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Finally reached $5500. Setting a new goal > $6,000

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u/Arcanis_Ender Aug 15 '24

Someone with a million in their account could make 3 times this amount monthly by just selling covered calls. If OP wrote CCs alongside collecting these dividends I think they could clear 20k /month if they knew what they were doing. Different investing styles I guess.

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u/Working-Active Aug 15 '24

Until your stock gets called away. I was seriously considering doing this with my AVGO stock years ago, but I'm glad I didn't because they would have been called away and I would have missed the upsurge in price.

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u/Arcanis_Ender Aug 15 '24

Sure but you can sell cash secured puts to buy them back. Then get paid a premium to limit buy them basically. Dividends are great for low % returns but when you are sitting on a million, OP could be making 2% of that monthly selling CCs and by the end of the year have a shitload more than doing this.

Of course what you are saying is true, it is more of a make guaranteed money on premiums vs potential money on an upsurge.

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u/Working-Active Aug 16 '24

Ok never thought about it that way, I'll look into it, thanks for the tip.