Option Trade: Increase Income On High Dividend Stocks With This Strategy

TL;DR

Medical Properties Trust, a healthcare REIT, offers a high dividend yield and is a solid investment option for income investors.

Transcript

[Applause] hey option traders today we're looking at using the covered call strategy and medical properties trust medical properties trust is a healthcare reit which offers a high yield and was recently featured in ibd's income investor column the stock is in a solid uptrend showing a series of higher highs and higher lows analysts are also bullish... Read More

Key Insights

• ✋ Medical Properties Trust is a healthcare real estate investment trust offering a high dividend yield.
• 📞 The stock is in a solid uptrend and has received positive analyst reviews.
• 📔 Utilizing covered call options on Medical Properties Trust can generate additional income for income investors.
• ❓ The strategy involves buying the stock and selling call options on it.
• 😚 If the stock closes above the strike price on the expiration date, the shares may be called away, resulting in a profit.
• 🌸 Investors should be aware of the potential risks involved, including the loss of the investment.
• 👶 Practicing with a virtual account is recommended for those new to options trading.

Questions & Answers

Q: What is Medical Properties Trust and why is it a good investment option for income investors?

Medical Properties Trust is a healthcare real estate investment trust that offers a high dividend yield and has shown consistent growth. It is a good investment option for income investors due to its solid uptrend and positive analyst sentiment.

Q: How can covered call options enhance the dividend yield on Medical Properties Trust?

Covered call options involve buying the stock and selling call options. By selling call options on Medical Properties Trust, income investors can generate additional income on top of the dividend yield.

Q: What is the risk involved in using covered call options on Medical Properties Trust?

The main risk is that if the stock price drops, it could wipe out any gains made from selling the call options. Investors should carefully assess their risk tolerance and consider the potential impact of a stock price decline.

Q: Are there any additional strategies for increasing income with high dividend stocks?

In addition to covered calls, income investors can also consider using cash secured puts on high dividend stocks to increase their income. These strategies involve different levels of risk and it's important to understand them before implementing them.

Summary & Key Takeaways

• Medical Properties Trust is a healthcare REIT with a solid uptrend and positive analyst sentiment.

• Utilizing covered calls on Medical Properties Trust can enhance dividend yield for income investors.

• The strategy involves buying shares of Medical Properties Trust and selling call options to generate additional income.