How I Made My Internet Bill in 20 Days Using Covered Calls 💸📈
A Simple Strategy for Passive Income
As an investor, I’m always looking for ways to generate extra income without taking on unnecessary risk. One of my favorite strategies is selling covered calls. Recently, I used this approach to earn a 1.5% return on my Manulife (MFC) shares in just 20 days—enough to cover my $40 internet bill. Here’s how I did it.
My Covered Call Trade on Manulife (MFC)
I own 100+ shares of Manulife (MFC), a stable dividend-paying financial stock. Rather than just holding it passively, I decided to sell a covered call to generate additional income.
• Stock Owned: 100.35 shares of MFC at ~$29.57$Manulife(MFC)$
• Call Sold: MFC CALL 20250221 28.0
• Premium Received: $1.65 per share (or $165 total)
• Expiration Date: February 21, 2025
This means I agreed to sell my MFC shares at $28 if the stock price exceeds that level by expiration. In exchange, I immediately received a premium of $165.
The Return: 1.5% in 20 Days
• The $165 premium on a ~$2,997 investment represents a 5.5% return if I hold until expiration.
• However, in just over 20 days, my position appreciated by $34.24, meaning I already locked in 1.5% of my capital in a short time.
• Since my monthly internet bill is $40, this one trade covered nearly all of it within a few weeks.
Why Covered Calls Are Great for Cash Flow 💰
1. Extra Income: Instead of waiting for dividends, I generate immediate cash flow.
2. Downside Protection: The premium received lowers my cost basis, reducing risk.
3. Steady, Predictable Returns: Selling covered calls on stable stocks can provide consistent income.
The Bigger Picture
This strategy can be repeated every month, quarter, or year, making it an excellent way to generate passive income. By using covered calls, I’m not just holding stocks—I’m making my assets work for me.
@TigerStars @CaptainTiger thanks for the support
If you’re looking for a way to pay off small expenses like utility bills, consider covered calls as an additional income stream. Small moves like these can add up over time! 🚀
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