Smooth Sailing With Options

In my never ending quest to make my money work harder for me, I discovered this little gem of an idea.  It’s a program by Fidelity, but every other brokerage I checked offers something like it.  Basically, if you own stock, you can loan it to Fidelity and get paid for that.  Your stock is still yours, and backed up by Fidelity, and you still get any dividends.  You can’t sell options on it at the same time, so for me, this works best for stock that’s sitting in a non-tax protected account that I am not trading.  But this way you get the dividend, any growth, and some extra for loaning it out.  As far as I can tell, rates vary from 5% to 10%.  Sounds good to me!

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