If you’ve been watching Hershey (HSY) lately, you know the stock hasn’t exactly been sweet. Since July of last year, it’s gone up… then down… then right back where it started.
But that kind of sideways action can actually be great news for income investors — if you know how to take advantage of it.
I’ll explain…
For more than a year now, I’ve been using HSY as a real-world example of how selling cash-secured puts and covered calls on high-quality dividend growth stocks can generate steady, reliable income… even when the stock itself goes nowhere.
And Hershey has been a textbook case.
How It’s Played Out
Since July 2024, I’ve entered a series of option trades on HSY — each one generating solid income, while keeping risk relatively low. Here’s how the journey has looked:
- July 2024: Sold a cash-secured put with a $180 strike. The stock stayed above that level, and I kept the entire $320 premium.
- October 2024: Sold another put for $435 income. This time, shares were assigned — meaning I bought 100 shares at $180 each.
- December 2024: With those shares in hand, I sold a covered call for $295. The contract expired worthless, so I kept both the shares and the premium.
- March 2025: Sold another covered call for $784. Same result — more income, still held the shares.
- September 2025: Sold another covered call at the $185 strike, collecting $727. That call was later exercised and my shares were called away at $185.
Along the way, I also received three quarterly dividends of $137 each — another $411 in passive income.
By early October 2025, the total cash collected from this HSY “income wheel” had grown to nearly $3,000, combining option premiums and dividends.
Summary of HSY Income Trades
| Date | Trade Type | Strike | Income Collected | Outcome |
|---|---|---|---|---|
| Jul 2024 | Cash-Secured Put | $180 | $320 | Expired worthless |
| Oct 2024 | Cash-Secured Put | $180 | $435 | Assigned 100 shares |
| Dec 2024 | Covered Call | $180 | $295 | Expired worthless |
| Mar 2025 | Covered Call | $180 | $784 | Expired worthless |
| Sep 2025 | Covered Call | $185 | $727 | Shares called away |
| 2025 (3 Dividends) | Dividend Income | — | $411 | Collected quarterly |
| Total | $2,972 | Options + dividends |
The most recent covered call, sold at the $185 strike, was exercised — meaning my 100 shares were called away at $185 each.
That locked in a modest stock gain on top of the nearly $3,000 in income I’d already collected. So even though HSY’s price has barely budged for over a year, these option trades turned a boring, flat stock into a steady income generator.
And the story continues.
Just yesterday, I sold a new cash-secured put option on HSY — this time generating another $870 in instant income.
If the stock stays above my strike, I’ll simply keep that cash and move on. If it dips, I’ll happily buy the shares back at $185 and start the next round of income generation.
Either way, this trade continues the same low-drama, high-income rhythm that’s been working for more than a year now.
The Takeaway
This is exactly why I like selling options on high-quality dividend growth stocks. You don’t need wild price swings to make money — just time, discipline, and the right approach.
While many investors wait for stocks like Hershey to “recover,” I’ve been collecting thousands in real cash flow month after month. And now, with this latest trade, the cycle begins again.
Good investing!
Greg Patrick
P.S. I’ll be sharing the full details of my brand-new HSY trade — including the strike, expiration, and risk/reward setup — with subscribers of Dividends & Income Select. If you’d like to see exactly how I’m generating relatively safe, high income from great dividend stocks like Hershey, you can join here and get all the details in the coming days.
Source: Dividends & Income
