Make 4X the S&P 500 With These 9 Covered Calls
Last week my readers pocketed $910 in covered-call income — while the market crawled up 0.4%
This week's picks are set to continue the pattern — even my safest selections are projected to deliver 4× what the S&P offers.
Premium income → more dividend stocks → more dividends → more covered calls → even more premium income. — It's the foundation of my investment philosophy.
It's what we do here: create a self-reinforcing wealth cycle that works regardless of market conditions.
Performance Snapshot
Last Week’s Covered-Call Picks:
$910 in covered-call cash—May trades are still flat—and that’s 3× the S&P’s gain.
This Week's Selections Projected Performance:
How Do I Pick My Targets for The Multiplier: The VADER Screen
VADER stands for Volatility Arbitrage Dividend Enhancement Return system.
It's the proprietary screening algorithm that has followed me from the trading desk to my home office.
Every Sunday, I scan 3,217 optionable stocks, filtering for 16 specific criteria, including liquidity thresholds, volatility patterns, and technical support levels.
What remains gets sorted into three categories designed to fit different investor needs:
🔒 Conservative (8-12% target yield)
⚖️ Balanced (15-25% target yield)
🔥 Aggressive (25%+ target yield)
The final picks are pushed directly from VADER to all Premium subscribers every Thursday and Sunday.
More on VADER and my Investment Philosophy:
Disclaimer: Everything I've shared is simply for educational and informational purposes and should not be considered financial advice. Everyone's financial situation is unique, and what works for one person might be completely wrong for another. Before making any financial moves, it's always wise to consult a qualified financial advisor who is familiar with your specific circumstances.
🔒 TIER 1: Conservative Income
Capital Preservation Focus - Highest Premium Yield % on Low-Beta Names (Δ ≈ 0.30-0.45, IV ≤ 60%)
1. Bank of America (BAC) $41 Call - May 17, 2025 (20 DTE)
Strategic Rationale: Low-volatility (32% IV) financial with P/E 11, strong liquidity (1,066 OI), tight spreads ($0.03). SIFI status adds stability.
Technical Analysis: Support: $38.50 (50-DMA). Resistance: $41.50. Strike positioned optimally within channel.
Position Sizing: ≤ 5% of portfolio.
Exit Strategy: Consider rolling to June $41.50 calls when approaching resistance. Maintain delta ≤ 0.45 for a conservative risk profile.
***Alternative Strategy: If unavailable, the BAC $41 June 21 call offers similar characteristics with extended duration.
2. CVS Health (CVS) $67.50 Call - May 17, 2025 (20 DTE)
Strategic Rationale: Low-volatility (28% IV) healthcare with 3.7% dividend. Defensive sector with excellent liquidity (7k OI).
Technical Analysis: Support: $64. Resistance: $68. Strike positioned at upper resistance band.
Position Sizing: ≤ 5% of portfolio.
Exit Strategy: Consider both rolling to June $70 calls or closing at substantial premium capture when nearing resistance. Study which approach better suits market conditions.
***Alternative Strategy: CVS $70 May 17 call for higher strike if needed.
3. AbbVie (ABBV) $195 Call - June 21, 2025 (55 DTE)
Strategic Rationale: Dividend aristocrat (4%) with extremely low IV (24%). Pharmaceutical giant offering 4.8% upside buffer.
Technical Analysis: Support: $182. Resistance: $196 (at strike). Optimal technical positioning.
Position Sizing: ≤ 5% of portfolio.
Exit Strategy: Consider examining July $200 calls when position appreciates toward resistance. This preserves conservative positioning while extending income generation.
***Alternative Strategy: ABBV $200 June 21 call for higher strike.
⚖️ TIER 2: Balanced Approach
Income with Moderate Risk - Maximizing Premium Yield % ÷ Delta ratio (Δ ≈ 0.35-0.55)
This Thursday, I will be raising the prices by 30%. Consider becoming a paid subscriber today to secure the current rates.
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