Latest news with #Aristocrats
Yahoo
28-05-2025
- Business
- Yahoo
10 Ways To Build Wealth Fast
Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, especially for those working on savings plans and retirement accounts, the only real way to get rich overnight is an inheritance or a lottery win. Learn More: For You: Ironically, the best way to build wealth 'fast' is to chart out a prudent path toward long-term gains. The quicker you can start saving and investing, the faster your money will compound, which is the true magic behind growing wealth over time. Here are 10 ways you can grow your net worth, achieve your financial goals and put some extra money in your savings account as rapidly as possible without taking on undue risk. The S&P 500 index doesn't guarantee profits, but it's proven itself time and time again to be a tremendous generator of long-term wealth. In fact, most investors are surprised to learn that the 'risky' stock market has never lost money over any 20-year rolling period. And yet, the long-term average return of the S&P 500 is north of 10%. This means the S&P 500 index has a tremendous risk/reward profile over the long run. Even legendary investor Warren Buffett, the 'Oracle of Omaha' himself, has directed his trustee to keep 90% of his money in an S&P 500 index fund after he passes. Dividend-paying stocks may seem like a slow and boring way to build wealth, but they are one of the best ways to tap into a solid and growing source of income The so-called 'Dividend Aristocrats' are large, well-known companies in the S&P 500 index, like Coca-Cola and McDonald's, that have raised their dividends for at least 25 years in a row. This means that those who bought these companies 25 years ago are earning huge effective yields on their original investment amount. Combined with the potential for capital gains, the Dividend Aristocrats can be a great way to build wealth. As of early 2025, the highest-paying dividend stock is Walgreens Boots Alliance Inc. (WBA) with a yield of 10.7%. Read Next: One of the key ways to build wealth fast — and over the long term — is to earn passive income. And one of the best ways to generate passive income is to own one (or several) rental properties. With a well-managed rental property, you'll receive a steady stream of income every month, with little additional effort required on your part. While you'll have to find tenants to move in and will have to deal with occasional maintenance issues, your income will essentially be on autopilot. Unlike your mortgage payment, your rents will continue to rise over time, meaning your tenants will be paying some or all of your mortgage while you watch your properties appreciate. The cost of living goes up nearly every year, and so does your experience and value to your company. As such, you shouldn't be afraid to ask for regular raises, both to keep up with the cost of inflation and to be paid what you're truly worth. This doesn't mean you should constantly pester your boss about getting paid more, but you should make the case, when appropriate, that your value should be reflected in your salary. Those who fail to ask for raises tend not to get them, so don't overlook this source of building your wealth. Most of the world's billionaires either inherited their money or started their own businesses. If you're looking to generate a large amount of wealth, starting and growing a successful company is one of the most likely paths. Of course, entrepreneurship is a risky proposition, as many new companies fail in just the first few years. However, if you can create a solid business idea, raise the appropriate funding and get the right people working for you, this high-risk, high-reward path can pave the way to a lifetime of wealth. If you're going to spend your life working for others, you'll have to make yourself as valuable as possible if you want to generate the most wealth. Educating yourself in a wide variety of fields and developing a diverse skill set are some of the best ways to demonstrate your value as an employee. Focus on specialized skill sets that are in high demand, such as those in the high-paying tech and financial industries, to give yourself the best opportunity to grow your wealth rapidly. Swiping your credit card to invest in yourself is money well spent as it comes with high returns. It's hard to generate sizable wealth on a single salary, even if you save a large portion of it. To build wealth fast, set up multiple streams of income. For example, in addition to your day job, pick up a side hustle that matches your talents and abilities. If you're a freelancer, try to find additional clients in a variety of different industries. Not only will this bring you additional income, but it will also help protect you during economic downturns if you happen to lose one of your sources of income. You can't begin any type of wealth-generation plan without having money to invest. As soon as you start drawing an income, make it your top priority to save as much money as you can. One strategy often recommended by advisors is to 'pay yourself first,' meaning put money in savings immediately when you receive your paycheck, even before you pay your bills. This type of 'forced savings' will require you to trim your discretionary spending but will also result in rapidly growing wealth. You'll never generate any wealth at all if you spend more than you earn. To set yourself up for a lifetime of prosperity, it's important to create a strict budget and stick to it. Make sure that in addition to all of your unavoidable expenses, you've got a significant line item for saving and investments. Every month that you can come in under budget, you're adding to your pool of lifetime wealth. Although being too speculative is a surefire way to risk all the savings you've worked for, being too conservative can be equally damaging in terms of limiting your wealth. Taking some risks in your financial life — from investing a bit more aggressively to starting your own business — is a necessary component if you want to generate outsized levels of wealth. Owning some stocks, real estate, your own business or even some cryptocurrencies are way to gain exposure to higher potential returns on your investments. Just understand that while speculation has a role in generating wealth, it also brings additional risk to the table. Caitlyn Moorhead and Brooke Barley contributed to the reporting for this article. More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on 10 Ways To Build Wealth Fast
Yahoo
16-04-2025
- Business
- Yahoo
Is Illinois Tool Works (ITW) the Best Dividend Monarch to Invest in Now?
We recently published a list of the 10 Best Dividend Monarchs to Invest in Now. In this article, we are going to take a look at where Illinois Tool Works Inc. (NYSE:ITW) stands against other best dividend monarchs. Dividend-focused investors are generally well-acquainted with terms like Dividend Aristocrats and Dividend Kings, but many may not be aware of a lesser-known group called Dividend Monarchs. While they fall under the broader category of dividend growth stocks, they carry a distinct title. The Dividend Monarchs Index highlights US companies that have managed to raise their dividends consistently for at least 50 consecutive years. These firms have weathered decades of market ups and downs, showcasing both resilience and steady performance in terms of dividend growth and stock returns. As an evolution of the well-known S&P Dividend Aristocrats Index Series, the S&P Dividend Monarchs Index sets an even higher standard, recognizing a more exclusive tier of long-term dividend payers. S&P Dow Jones Indices has been a pioneer in dividend growth strategies since the 1980s, initially tracking US companies with at least 10 years of dividend increases. As the number of such companies grew, the threshold was raised to 25 years, forming the basis for the Dividend Aristocrats Index, launched in 2005. This index became a widely recognized benchmark, eventually expanding to include mid- and small-cap stocks as well as global markets. By April 2023, over $40 billion in ETF assets tracked these indices. With a rising number of companies now surpassing 50 consecutive years of dividend growth across different market caps, S&P introduced the Dividend Monarchs Index in 2023 to reflect this new elite group. The key distinction between Dividend Kings and Dividend Monarchs lies in the inclusion criteria. While both require at least 50 consecutive years of dividend increases, Dividend Monarchs must also meet specific standards set by S&P. To qualify for the Dividend Monarchs Index, a company must be part of the Composite 1500, have a float-adjusted market capitalization of at least $2 billion, maintain a three-month average daily trading value of $5 million or more, and consistently grow its dividend over five decades. This added layer of eligibility makes Monarchs a more selective, index-based group. Companies that meet the tough 50-year dividend growth requirement tend to show strong profitability and financial stability. According to an S&P Dow Jones Indices report dated April 30, 2023, the Dividend Monarchs Index outperformed both the broader market and the S&P Composite in terms of return on equity (ROE) and showed more consistent earnings. The report also noted that, based on back-tested data since January 31, 2018, the Dividend Monarchs Index displayed more defensive traits—offering lower volatility and smaller drawdowns than the S&P 500 during market declines. Although the Dividend Monarchs Index is a relatively new concept with only five years of back-tested performance, it has grown significantly during that time, expanding from 11 to 35 constituents. Despite the index's short history, the companies included have a track record of at least 50 consecutive years of dividend growth, dating as far back as 1972. According to data presented by S&P Dow Jones Indices, the performance of these companies—measured through both price returns over the past 50 years and total returns since December 1989—has generally outpaced that of the broader market. This suggests that many of the index's constituents have delivered stronger long-term results. A factory in operation, its machinery humming as new industrial products get built. For this list, we scanned the holdings of the S&P Dividend Monarchs Index, which tracks the performance of companies with 50 consecutive years of dividend growth. From that list, we picked 10 stocks that were most popular among hedge funds, as per Insider Monkey's Q4 2024 database. The stocks are ranked in ascending order of the hedge funds having stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 49 Illinois Tool Works Inc. (NYSE:ITW) is an American diversified industrial company that operates in a wide range of segments. The company is deeply rooted in the industrial economy and stands out for its broad diversification, which serves as a key advantage—particularly as the market moves away from traditional conglomerate structures. Each of its segments operates with strong profit margins and represents only a modest portion of the overall business. This structure allows the company to remain resilient, as it can withstand slowdowns in individual segments without significantly impacting the broader business. In the fourth quarter of 2024, Illinois Tool Works Inc. (NYSE:ITW) reported $3.9 billion in revenue, marking a 1.28% year-over-year decline and falling short of analyst expectations by more than $50 million. Despite the revenue miss, the company's GAAP earnings per share rose 7% to $2.54. The operating margin improved to 26.2%, with enterprise initiatives contributing significantly—adding 120 of the 140 basis-point increase. Illinois Tool Works Inc. (NYSE:ITW) also maintained a strong financial position, generating $1.1 billion in operating cash flow and achieving a record free cash flow of $1 billion, up 10% with a 133% conversion rate. Looking ahead to FY25, the company expects free cash flow to surpass net income and plans to repurchase about $1.5 billion in shares. It also anticipates an effective tax rate between 24% and 24.5%. Illinois Tool Works Inc. (NYSE:ITW) is one of the best Dividend Monarchs as the company has been growing its dividends for 52 consecutive years. The company currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 2.58%, as of April 15. Overall, ITW ranks 10th on our list of the best Dividend Monarchs to invest in. While we acknowledge the potential of ITW as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than ITW but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Is PepsiCo, Inc. (PEP) the Best Dividend Monarch to Invest in Now?
We recently published a list of the 10 Best Dividend Monarchs to Invest in Now. In this article, we are going to take a look at where PepsiCo, Inc. (NASDAQ:PEP) stands against other best dividend monarchs. Dividend-focused investors are generally well-acquainted with terms like Dividend Aristocrats and Dividend Kings, but many may not be aware of a lesser-known group called Dividend Monarchs. While they fall under the broader category of dividend growth stocks, they carry a distinct title. The Dividend Monarchs Index highlights US companies that have managed to raise their dividends consistently for at least 50 consecutive years. These firms have weathered decades of market ups and downs, showcasing both resilience and steady performance in terms of dividend growth and stock returns. As an evolution of the well-known S&P Dividend Aristocrats Index Series, the S&P Dividend Monarchs Index sets an even higher standard, recognizing a more exclusive tier of long-term dividend payers. S&P Dow Jones Indices has been a pioneer in dividend growth strategies since the 1980s, initially tracking US companies with at least 10 years of dividend increases. As the number of such companies grew, the threshold was raised to 25 years, forming the basis for the Dividend Aristocrats Index, launched in 2005. This index became a widely recognized benchmark, eventually expanding to include mid- and small-cap stocks as well as global markets. By April 2023, over $40 billion in ETF assets tracked these indices. With a rising number of companies now surpassing 50 consecutive years of dividend growth across different market caps, S&P introduced the Dividend Monarchs Index in 2023 to reflect this new elite group. The key distinction between Dividend Kings and Dividend Monarchs lies in the inclusion criteria. While both require at least 50 consecutive years of dividend increases, Dividend Monarchs must also meet specific standards set by S&P. To qualify for the Dividend Monarchs Index, a company must be part of the Composite 1500, have a float-adjusted market capitalization of at least $2 billion, maintain a three-month average daily trading value of $5 million or more, and consistently grow its dividend over five decades. This added layer of eligibility makes Monarchs a more selective, index-based group. Companies that meet the tough 50-year dividend growth requirement tend to show strong profitability and financial stability. According to an S&P Dow Jones Indices report dated April 30, 2023, the Dividend Monarchs Index outperformed both the broader market and the S&P Composite in terms of return on equity (ROE) and showed more consistent earnings. The report also noted that, based on back-tested data since January 31, 2018, the Dividend Monarchs Index displayed more defensive traits—offering lower volatility and smaller drawdowns than the S&P 500 during market declines. Although the Dividend Monarchs Index is a relatively new concept with only five years of back-tested performance, it has grown significantly during that time, expanding from 11 to 35 constituents. Despite the index's short history, the companies included have a track record of at least 50 consecutive years of dividend growth, dating as far back as 1972. According to data presented by S&P Dow Jones Indices, the performance of these companies—measured through both price returns over the past 50 years and total returns since December 1989—has generally outpaced that of the broader market. This suggests that many of the index's constituents have delivered stronger long-term results. Given this, we will take a look at some of the best Dividend Monarchs to invest in. A close up of a glass of a refreshing carbonated beverage illustrating the company's different beverages. For this list, we scanned the holdings of the S&P Dividend Monarchs Index, which tracks the performance of companies with 50 consecutive years of dividend growth. From that list, we picked 10 stocks that were most popular among hedge funds, as per Insider Monkey's Q4 2024 database. The stocks are ranked in ascending order of the hedge funds having stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 69 PepsiCo, Inc. (NASDAQ:PEP) is a New York-based food, snack, and beverage company. It benefits from a well-diversified business model, supported by its strong presence in the snack food sector, which opens up multiple avenues for growth. While Coca-Cola may hold a slight edge in terms of balance sheet strength, much of PepsiCo's debt is tied to recent acquisitions. With inflation showing signs of easing and recession risks being reassessed by financial institutions, the likelihood of interest rate cuts increases—an environment that could work in PepsiCo's favor, given its debt load. In fiscal 2024, PepsiCo, Inc. (NASDAQ:PEP) reported solid financials, with revenue reaching $91.8 billion, up slightly from $91.4 billion the year before. Operating profit rose to $12.8 billion, compared to $11.9 billion in 2023, and net income totaled $9.6 billion. Looking ahead to fiscal 2025, the company anticipates low single-digit organic revenue growth and mid-single-digit growth in core EPS on a constant currency basis. During FY24, PepsiCo, Inc. (NASDAQ:PEP) generated $12.5 billion in operating cash flow and plans to return about $7.6 billion to shareholders through dividends. The company currently offers a quarterly dividend of $1.355 per share and has a dividend yield of 3.78%, as of April 15. In February, the company marked its 53rd consecutive annual dividend increase, which makes it one of the best Dividend Monarchs on our list. Overall, PEP ranks 6th on our list of the best Dividend Monarchs to invest in. While we acknowledge the potential of PEP as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PEP but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
10-04-2025
- Business
- Yahoo
5 Dividend Aristocrats with sky-high yields above 5%
There are several ways for investors to add stable investments that provide a stream of income to their portfolios. One of the most common ways to do so is by investing in dividend stocks. In fact, there are some companies, referred to as Dividend Aristocrats, that have consistently been raising their dividends every year for 25 years or more. Here's a look at five Dividend Aristocrats with yields above 5 percent. If you are considering adding any new investments to your portfolio, you may want to consult with a financial advisor who can help you devise a plan based on your individual needs, time horizon and risk tolerance. Company Dividend yield Franklin Resources Group (BEN) 6.89 percent Realty Income Corp. (O) 5.97 percent Amcor Plc (AMCR) 5.65 percent T. Rowe Price Group Inc. (TROW) 5.63 percent Stanley Black & Decker Inc. (SWK) 5.11 percent A Dividend Aristocrat is a stock with a long track record of paying investors dividends. These are typically large, resilient companies that have stable, income-generating businesses. This means they aren't necessarily the fastest-growing companies, but they typically have solid fundamentals. To qualify as a Dividend Aristocrat, a company must meet these criteria: Increase its dividend payout every year for at least 25 years; Be a member of the S&P 500; Have a market cap of at least $3 billion; And meet the liquidity requirement of $5 million in average daily trading volume. If you're looking to cash in on the high dividends these stocks pay, you have a couple of options. If you're choosing this route, you will have to put in some research to figure out which individual stocks fit into your long-term financial goals. A financial advisor can also help you pick investments that align with your overall financial plan. Probably the easiest and most accessible way to invest in Dividend Aristocrats is to buy shares of an ETF. In fact, dividend stock ETFs are very popular, and you can even buy a Dividend Aristocrats ETF specifically. One option is the S&P 500 Dividend Aristocrats ETF (NOBL). ETFs are an affordable way to diversify your portfolio because the expense ratios tend to be low. Also, these funds expose you to a basket of different stocks at one time, diversifying your holdings. Need an advisor? Need expert guidance when it comes to managing your investments or planning for retirement? can connect you to a CFP® professional to help you achieve your financial goals. For all the benefits that come with generating passive income through stocks that pay dividends, there are a few risks to keep in mind when investing in high-dividend stocks. Competitive weakness. Some companies pay high dividends while neglecting to reinvest that money into their business so that the company can grow. This can potentially weaken their market position over time and create a decline in profit. Taxes. It's important to understand that any dividends you receive are taxable as income (unless they're in a 401(k) or other tax-advantaged account). The dividends are also taxable if you reinvest them. Warning signs. Sometimes, a company's dividend yield is high because it has recently experienced a major drop in its stock price, sending the yield up. Make sure to evaluate the financial health of the company and metrics like its payout ratio, which will tell you what percent of the company's profits are paid out as dividends. If the company has a large payout ratio, that means it may have to dip back into that during times of economic distress, taking away from the dividend you'll receive. Investing in Dividend Aristocrats is just one way to generate passive income. There are a few ways to go about investing in stocks, including buying them individually or purchasing shares of an ETF that includes Dividend Aristocrats. Whichever route you choose to go, remember to take the time to consider your risk tolerance, time horizon and how Dividend Aristocrats fit into your long-term investing strategy. A financial advisor can help you navigate the answers to these questions. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. Sign in to access your portfolio
Globe and Mail
26-02-2025
- Business
- Globe and Mail
Here's the Best Dividend Stock To Sell Covered Calls on Today
People say that dividend investing is boring, and I get it. After you buy the stock, there's really nothing else left to do but check your portfolio every now and then and wait for the dividends to come in. Then, maybe at some point down the line, you'll sell your dividend stocks for a capital gain. That is, except for when you throw options trading in the mix. You see, certain option strategies like covered calls allow you to leverage your long-term dividend stocks, be it a Dividend Aristocrat or King, to boost your profits. Selling covered calls allows you to collect additional income from your dividend stocks in exchange for potentially giving up a little upside. And if you carefully manage your calls, you can repeat the process. Naturally, if you already own dividend stocks, like, say, Coca-Cola, you can use the Covered Call tool on the asset page to screen for potential call options to sell. Then, you can decide the expiration date and strike that works best for you. Income investors can earn an additional 0.5% - 1% or more in monthly premiums by selling covered calls. Today, however, I'll show you how to use Barchart's Option Screener tool to find the best dividend stock you can buy to sell covered calls - right now. Then, I'll break down the trade and give you risk-mitigation strategies to avoid getting assigned. Looking For The Right Covered Call Trade First, let's jump over to Barchart's Covered Call Option Screener. You'll be brought to the results page first. The default results page is a good start for covered call trades. As you can see, all the relevant details, like premiums, strike prices, expiration dates, percentages, and probabilities, are on display. However, we're looking for covered calls on dividend stocks like Kings and Aristocrats, so let's click on the Set Filters tab at the top. There, you'll see the default filters for covered calls. I've added some filters and changed the values of some of them to personalize my analysis. Underliyers Found on the Watchlist: This cross-functional filter allows me to access and search my Barchart Watchlists. As you can see, I've limited the search to Dividend Aristocrats (25 years of straight dividend payment increases) and Kings (50 years), so I know I'm getting good quality dividend stocks on my screens. Bid Price: This filter indicates how much you can sell the covered call for per share. I set this to $1, so the minimum premium I'll get from the trade results is $100 total. OTM Probability: This filter gives us an estimated probability of the option expiring out of the money, allowing you to avoid assignment. I'll set this to 70% or more. And so, with these filters and values, here are the screen results: These trades are arranged by the highest potential returns by default. The top three trades, all on TGT stock (Target Corp), are pretty decent, but I'd prefer to use the third one, as its expiration date is closer. So, let's break down that trade. Covered Call on Target: Trade Details The screen indicates you can buy 100 shares of Target Corporation at $127.39 per share, bringing your initial capital to $12,739. Then, you can write a $140-strike call on that stock position for $2.06 per share or $206 total in premium per contract that expires on March 7, 2025, 10 days from the date of the screen. This trade has a 77.83% chance of expiring out of the money, meaning there's a big chance you get to keep the full $206 (minus trade fees) by expiration. The trade also has a -0.24084 delta. For a quick reference, delta is an option Greek that tells us how much the premium is expected to change for every $1 change in the underlying stock's price. Traders also use it as a quick indicator to check the probability of an option expiring worthless. Here's a quick reference guide on how to interpret delta for covered calls: So, if TGT doesn't trade at $140 by March 7, you get to keep your 100 shares - and that's the goal. However, if TGT stock is trading near the strike by expiration, I suggest closing your short options with a buy-to-close order. It will give you some extra peace of mind. You will need to pay a little premium to buy back that short call. However, it'll likely be near zero as options lose value the closer they get to expiration - especially if they are out of the money. Doing so assures there'll be no chance of getting assigned and losing your shares. The trade also has an annualized return rate of 427.2%. That means if you could sell a 10DTE covered call for $206 (but not necessarily with the same strike price) for the whole year and not get assigned, you could earn back more than 400% of your capital. Of course, that's just a broad overview; the market will change over time, so you'd have to adjust your trades accordingly. Target also pays $4.48 in annualized dividends, translating to a 3.51% yield, so if you can keep your shares, the income will keep coming. Rolling Positions and Assignment On expiration day, one of two things will happen. TGT's stock price will either be higher or lower than the call option strike. Whatever happens, the ideal situation is for the call to expire worthless, and it happens if the stock trades below the strike at expiration. Then, you can sell another call with a different strike and expiration; rinse and repeat. If however, the stock is near or exceeds the strike, it's suggested to roll your position. To roll your covered call, start by buying back the call with a buy-to-close order - this will close it out. Then, sell another call with a later expiration date, always paying attention to the OTM probabilities and/or delta. This means the strike will likely be different as well. This is called rolling your position. IMPORTANT: If you don't roll your position and TGT hits or exceeds $140 at expiration, your short call will be assigned, and your 100 TGT shares will be called away at $140 per share, even if TGT soars above $140. This isn't necessarily terrible, though, as you'll still earn money from the trade - specifically, $12.61 per share from the sale of the stocks plus the $2.06 premium, bringing your net profit to $14.67 or $1,467 per contract. Not a bad payday. Then, you can again use the screener to find another target (an option target, not the company.) Final Thoughts Covered calls can be a great way to boost your income while still receiving income from long-term dividend stocks. Sure, it comes with the risk of losing your shares, but with proper risk management, you can avoid assignment and keep getting premiums from options trading.
