How to Calculate and Archive Results for a Rolling-Out-And-Up Covered Call Trade click ↑ 4 FeaturedWhen a covered call trade is expiring in-the-money (ITM), we may have an opportunity to retain the underlying shares by rolling-out or rolling-out-and-up. The latter is a more aggressive form of rolling. This article will scrutinize a series of real-life trades, shared by Bob, a BCI Premium Member, to demonstrate how to calculate and determine initial and final returns.Bob’s trades with JPMorgan Chase (NYSE: ...

Beware of the Shiney Object When Establishing Covered Call Trades click ↑ 4 FeaturedOne of the more common oversights made by retail investors is their focus on premium dollar amounts rather than annualized returns. I consider this “dollar distraction” the shiny object that prevents us from focusing on the more pertinent annualized returns. In this article, I will be analyzing real-life examples with NVIDIA Corp. (Nasdaq: NVDA) to demonstrate how to avoid these shiny objects.NVDA data on Jun 4, 2025NVDA tr ...

Core Insights - The article challenges the misconception that longer-dated options yield higher profits due to their larger dollar amounts, using NVIDIA Corp. (Nasdaq: NVDA) as a case study [2][9]. Group 1: Option Analysis - The analysis compares three expiration dates for NVDA options: June 6, 2025, July 3, 2025, and June 18, 2026, highlighting the bid prices for a $144.00 call option as $0.72, $4.70, and $27.20 respectively [6][8]. - The initial calculations show that the shortest-term option (June 6, 2025) has an expected return of 0.51% over 3 days, which annualizes to 61.96% [8]. - The 30-day option (July 3, 2025) has a projected return of 3.32%, annualizing to 40.44%, while the long-term option (June 18, 2026) shows a return of 19.24%, annualizing to 18.48% [9][10]. Group 2: Investment Strategy - Shorter-dated options are suggested to provide the greatest annualized returns, allowing for more frequent reassessment of bullish assumptions on underlying securities [10]. - The article emphasizes the importance of focusing on annualized returns rather than the nominal dollar amounts associated with long-dated options [9].

Core Viewpoint - The GAMCO Natural Resources, Gold & Income Trust has approved a continuation of its monthly cash distribution policy, declaring $0.05 per share for October, November, and December 2025, with expectations that distributions may exceed earnings and primarily constitute a return of capital for tax purposes [1][2]. Distribution Policy - The Board of Trustees has increased the annual distribution by 25% to $0.60 per share, which will be distributed at $0.05 per share monthly starting in October 2025 [2]. - The distribution schedule is as follows: - October: Record Date - October 17, 2025; Payable Date - October 24, 2025; Distribution - $0.05 - November: Record Date - November 13, 2025; Payable Date - November 20, 2025; Distribution - $0.05 - December: Record Date - December 12, 2025; Payable Date - December 19, 2025; Distribution - $0.05 [3]. Financial Monitoring - The Board of Trustees will review potential distributions quarterly based on income, realized capital gains, and available capital, while considering the Fund's net asset value and market conditions [3]. - The distribution rate should not be interpreted as the dividend yield or total return on investment [3]. Tax Considerations - Distributions will include short-term capital gains, qualified dividend income, ordinary income, and return of capital, allocated on a pro-rata basis [5]. - The final determination of distribution sources will be made after year-end, and shareholders will receive notifications regarding tax treatment in early 2026 via Form 1099-DIV [5]. Fund Overview - The GAMCO Natural Resources, Gold & Income Trust is a diversified, closed-end management investment company with total net assets of $148 million, primarily investing in equity securities of gold and natural resources companies [9]. - The Fund aims to provide a high level of current income through a strategy of writing covered call options on its equity securities [9].

Core Viewpoint - The GAMCO Global Gold, Natural Resources & Income Trust has approved the continuation of its monthly cash distributions, declaring $0.03 per share for October, November, and December 2025, with expectations that these distributions will primarily constitute a return of capital for tax purposes [1][2]. Distribution Details - The declared cash distributions are scheduled as follows: - October: $0.03 per share, payable on October 24, 2025, with a record date of October 17, 2025 [2] - November: $0.03 per share, payable on November 20, 2025, with a record date of November 13, 2025 [2] - December: $0.03 per share, payable on December 19, 2025, with a record date of December 12, 2025 [2] - The Board of Trustees will review potential distributions quarterly, considering the Fund's net asset value and market conditions [2]. Fund Characteristics - The GAMCO Global Gold, Natural Resources & Income Trust is a non-diversified, closed-end management investment company with total net assets of $801 million, focusing on providing a high level of current income [7]. - The Fund primarily invests in equity securities of gold and natural resources companies and employs a strategy of writing covered call options on its portfolio [7].

Group 1: Market Overview - The S&P 500 and Nasdaq Composite are at all-time highs, with increases of 106.6% and 68% respectively from the start of 2023 through August 15 [1] - Investors can balance their portfolios during uncertain times by investing in dividend-paying stocks or ETFs [1] Group 2: Chevron - Chevron is highlighted as a strong dividend stock with a forward dividend yield of 4.4%, making it a suitable choice for investors concerned about a market downturn [4][8] - The company is expected to generate free cash flow of approximately $5 billion in 2025 and $6 billion in 2026 from its Tengizchevroil project [5] - Chevron's acquisition of Hess is anticipated to provide significant free cash flow and production growth, with expected annual run-rate cost synergies of $1 billion by the end of 2025 [6] - Chevron has a history of annual dividend increases for nearly four decades, demonstrating resilience during market downturns [7] Group 3: Coca-Cola - Coca-Cola is recognized as a reliable high-yield dividend stock with a current yield of 2.9% and a 63-year streak of raising its dividend [10] - The company has produced a total return of 132.5% over the last decade, although it has underperformed compared to the S&P 500 [11] - Coca-Cola's competitive advantages include an efficient supply chain and strong marketing, allowing it to diversify its beverage lineup beyond soda [12][13] - The company is focusing on growing its market share in nonalcoholic categories, which is crucial given the changing consumer preferences [13][14] Group 4: Global X Nasdaq 100 Covered Call ETF - The Global X Nasdaq 100 Covered Call ETF offers a high distribution yield of 13.8%, providing a reliable source of monthly income [16] - The ETF employs a strategy of buying stocks in the Nasdaq 100 and writing covered call options, which helps generate premiums for distribution [17] - This strategy results in lower volatility and reliable income, making it suitable for passive income-seeking investors [19]

Core Viewpoint - The GAMCO Global Gold, Natural Resources & Income Trust has approved the continuation of its monthly cash distributions, declaring $0.03 per share for July, August, and September 2025, with expectations that these distributions may exceed the Fund's distributable earnings and primarily constitute a return of capital for tax purposes [1][2]. Distribution Details - The declared cash distributions are scheduled as follows: - July: $0.03 per share, payable on July 24, 2025, with a record date of July 17, 2025 [2] - August: $0.03 per share, payable on August 22, 2025, with a record date of August 15, 2025 [2] - September: $0.03 per share, payable on September 23, 2025, with a record date of September 16, 2025 [2] Fund Management and Monitoring - The Board of Trustees will review potential distributions quarterly, considering the Fund's net asset value and the financial market environment, and will continue to monitor the distribution level [2][3]. Distribution Components - Distributions will include short-term capital gains, qualified dividend income, ordinary income, and return of capital, allocated on a pro-rata basis. The final determination of distribution sources will be made after year-end and may vary from monthly estimates [4]. Fund Overview - The GAMCO Global Gold, Natural Resources & Income Trust is a non-diversified, closed-end management investment company with total net assets of $759 million, primarily investing in equity securities of gold and natural resources companies, and employing a strategy of writing covered call options [7].