Communication Services
VZ
Verizon Communications Inc.
Steady income from Verizon (VZ) with covered calls and cash secured puts. High dividend yield with low volatility for conservative investors.
Monthly Premium1.0-1.8%
Annualized Return12-22%
Stock Price$40-46
IV RankLow (20-35)
Options LiquidityVery Good
Dividend Yield6.5%
Why VZ for Covered Calls & Cash Secured Puts?
VZ offers one of the highest dividend yields among blue chips. Very low volatility means steady, predictable income. Perfect for retirees seeking stability.
Example Covered Call Trade
VZCovered Call
Strike Price$45 (5% OTM)
Expiration30 days
Premium$0.70 per share
Return If Flat1.6% ($70)
Return If Called6.6% ($290) + dividend
Keep Probability74% keep shares
Recommended Strategy for VZ
Conservative approach with calls 3-5% OTM. Focus on supplementing the strong dividend rather than high premium.
Risks to Consider
- Limited growth potential
- Wireless competition
- Debt from spectrum purchases
- 5G investment requirements
Analyze VZ Covered Calls Now
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