Comments on: Wachovia Covered Call Contracts

By: Wells Fargo to merge with Wachovia — Passive Family Income

Wells Fargo to merge with Wachovia — Passive Family Income — Fri, 03 Oct 2008 15:04:57 +0000

[...] credit: FadderUriA few weeks ago, I posted an article about my status on selling Wachovia Covered Call option contracts as one of my passive income streams. I previously mentioned that I [...]

By: passivefamilyincome

passivefamilyincome — Tue, 30 Sep 2008 16:49:39 +0000

Well – Unfortunately, I didn’t get all the way out. I sold a portion of my WB portfolio prior to Monday, but not everything. I am planning a follow up post on the details in a day or two!

By: Dividend Growth Investor

Dividend Growth Investor — Tue, 30 Sep 2008 13:50:54 +0000

PFI,

Did you sell WB before monday? I hope you did..

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 24 Sep 2008 18:25:02 +0000

I realize that you are trying to make more money off your stocks and it’s great that you are doing covered call selling. But as an investor you should demand both a great dividend income as well as sell covered calls with the smallest probability of having to render in your shares.

Good luck in your investments!

By: passivefamilyincome

passivefamilyincome — Wed, 24 Sep 2008 11:46:28 +0000

Dividend Growth Investor – Excellent points. My strategy was a little different with Wachovia than some of my other covered call contracts that I have sold in the past. I was looking to unload a good portion of my Wachovia position to diversify more and with their cut in the quarterly dividend. At the same time, I didn’t want to sell at a significant loss with my average share price in the mid 20’s. So instead, I sold Covered Calls spread out across different strike prices to earn some income until the stock rebounds.

I also agree with your points on selling naked calls. It just makes me a little nervous is all.