This guide from MenthorQ explores a dividend income strategy that leverages options to maximize returns from dividend-paying stocks. Dividend stocks, often favored for their stability and regular income, can be further optimized by using options to generate additional income streams.
The strategy involves selling puts to potentially acquire stocks at a lower price, collecting dividend income, and then selling covered calls to generate further income. This approach is designed for investors looking to enhance their returns while managing risk, particularly those willing to hold assigned stocks in their portfolio.
