Tall Texan: Let the Price Come to You
Tall Texan | Let the Price Come to You
Four cash-flow opportunities from a patient dividend-stock playbook
September 24, 2026 special edition
In Texas, patience can be a business strategy. Say there's a dividend stock you'd gladly own, but today's price doesn't suit you. A cash secured put sets a proposed entry price about 10% lower: reserve enough cash for 100 shares, sell one put if the actual premium is worth the risk, and accept the duty to buy if assigned. The stock can keep falling after you buy; the strike is no guarantee of value.
That simple starting point opens four potential income lanes over time: collect the put premium; earn interest on eligible reserved cash if your broker pays it; collect dividends after you actually own shares; and consider covered-call premium on shares you own. They are sequential opportunities, not four checks guaranteed to arrive together. A covered call can sell your shares and cut off further upside.
Put a pencil to the yield
On a fully reserved hypothetical $10,000, one year's cash received could look like 2% in a slow case (2% option premiums, no interest or dividends), 7% in an illustrative steady case (4% premiums + 1% eligible cash interest + 2% dividends), or 13% in a favorable active case (8% premiums + 2% interest + 3% dividends). These are scenario assumptions, not current option quotes, a forecast or a reliable annual yield. A 15% stock decline could more than offset the highest cash-flow case. There may be months with no suitable trade or no assignment, and you earn no stock dividend before you own stock.
Ten places to start the homework
September 24 reference stock price / illustrative put strike: XOM $162.14/$145, CVX $205.65/$185, O $55.41/$50, KO $88.10/$79, VZ $47.32/$42, T $25.45/$22, PFE $28.41/$25, MO $68.88/$62, D $60.40/$54, SO $82.89/$74. These are dividend-paying companies across energy, real estate, staples, telecom, pharmaceuticals, tobacco and utilities. Ten tickers do not mean ten good trades today: the put bid, spread, listed strike and expiration still need live verification.
The ranch rule: reserve the full strike price times 100 shares per contract. Check earnings and ex-dividend dates, option volume and bid/ask spread. Decide in advance whether you'd keep the stock at a much lower market price. Don't sell multiple puts against the same cash. If assigned, revisit the dividend and business before selling a covered call.
Learn about options accounts: Interactive Brokers options overview. This is a regular link, not a Tall Texan tracked affiliate link. Publisher affiliate information is available if the publication enrolls; disclose any future compensation.
For education, not a personalized recommendation. Put sellers can lose substantially more than the premium received. Dividend payments and cash interest are conditional. Obtain current quotes and confirm account permissions before trading.
Sources: OIC cash secured put; OIC covered call; SEC options bulletin; SEC sweep account bulletin.