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Target Covered Calls? 3 Better Options For High Income

Rising interest rate expectations have pushed many income-hungry investors out of traditional fixed income categories and into high-dividend stocks, such as Target. Some income-focused investors believe they can add to Target's high yield by selling covered call options against their shares. We believe this is a risky and unattractive strategy. This article highlights three specific options trades that we consider far more attractive for generating high income and achieving exceptional long-term total returns.