Due to the oil spill in the Gulf of Mexico, British Petroleum (BP) announced it is going to create a $20 bill fund to compensate victims and also cancel shareholder dividends for three quarters. British Petroleum’s current annual %dividend is in the neighborhood of 10%. For those investors invested in BP depending on the dividend, this could be traumatic, especially if they don’t want to sell their BP stock because of tax reasons. What should an investor stuck in this situation do? Well, one thing they might do is to enter covered call positions for BP. A covered call investment consists selling a call option against a stock. The covered call strategy can be considered similar to renting out a house, except with stock. Sign up now for PowerOptions 14-day free trial For example, a covered call position for BP for the 2010 July call option with a $31 strike...