| In part 1 of this series, we used the following 6 | | | | 4. Options Available |
| screens to identify an undervalued, high dividend | | | | 5. Current Ratio: Over 1.5 |
| stock, Cal-Maine Foods, (CALM), with a strong | | | | 6. Long Term Debt to Equity: Under .5 |
| balance sheet, whose yield we could increase | | | | We then used the conservative bullish approach |
| further through options: | | | | of selling covered calls to increase Cal-Maine's |
| 1. High Dividend Yield - Above 5 % (The average | | | | already high dividend even further. |
| S&P 500 dividend yield is approximately 3.42%). | | | | But, what approach can you take if you're not so |
| 2. Moderate Dividend Payout Ratio - Below 50 % | | | | bullish on the market, which has gained over 35% |
| (The S&P's payout ratio is approximately 59 %). | | | | since March 9, 2009, or, if you want to |
| 3. Less Than 40 % Above 52-Week Low | | | | accumulate CALM at a lower entry price? |