I don’t know what it is about ampersands that I like so much, but after earning such a juicy premium on Bed Bath & Beyond last week I am equally excited about receiving a big premium on H&R Block (NYSE: HRB) today.

Of course, I have a much better reason for liking this company other than the inclusion of a ‘&’ in its title. Namely, after taking a big drop two weeks ago as a result of forward guidance contained in an otherwise solid quarterly earnings report, HRB is one of only three companies in the entire S&P 500 Index that earns a perfect score of ’10’ from my IDEAL Stock Rating System.

At a recent share price of $23, HRB is priced at less than 12 times forward earnings and pays a generous forward annual dividend yield of 4.5%. Yes, it deserved to take a hit after announcing that it expects revenue to decline 3% next year due to tax simplification, but after dropping 20% it now appears oversold and likely to close above the $23 strike price by expiration date.

This trade will generate immediate income of at least $150 per contract now, with the possibility of buying H&R Block at where it currently trades if the stock gets put to you. Investors should set aside $2,300 per contract sold to buy the stock in case the option expires in the money.

Regardless of how many contracts you sell, it’s absolutely critical that you follow the instructions below, particularly when it comes to setting the limit order.

How to Make the Trade:

• Trade: Sell to open the October 19, 2018, $23 Put on HRB.
• Allocation: Sell one put for every 100 shares you would be pleased to buy at $23 per share.
• Prices:
  • Current Stock Price: $23
  • Limit Order Price: a credit of $1.50 or more.
  • Tell your broker: “I want to sell a put on H&R Block (NYSE: HRB) stock. Specifically, I want to ‘sell to open’ one October $23 Put for a credit of $1.50 per share or more.”

• Further Instructions Regarding the Trade:
  • If the option price changes, you can adjust our recommended limit based on the midpoint of the bid/ask spread, which you should be able to see when entering the trade. Just make sure the potential credit is at least $1.50 per share or more.
  • Place your limit order on a “good ’til canceled” (GTC) basis and be patient.

The Win-Win Situation:

For every put contract you sell, you will collect at least $150 that’s yours to keep no matter what happens in the future.

If the put expires worthless, meaning the stock price is above $23 per share at expiration, then we’ll do another trade to create another instant payment.

If the stock is trading at or below the strike price upon the contract’s expiration, then you’ll be buying HRB at its current market price, while locking in a yield of 4.5% – plus the premium you pocketed when you sold the put.

Then we’ll collect the dividend while creating more instant payments by selling covered calls against the stock.