tntsunrise

A easy way to earn money with Option (Covered Calls)

NASDAQ:AAPL   Apple Inc
A easy way to earn money with Option

Requirement
1. You already have some Apple shares
2. You are willing to sell some of them at 330
3. You have an Option Trading Account

Strategy:
Sell Covered Calls ( the amount should be less or equal to your existing shares)
Strike Price: 328-330 , the higher the strikie price
the lower of the premium you will get
Duration : One Month

Results:
1. If Apple cant break 330 in the near future
Every month you can repeat this strategy and collect Option Premium
2. If Apple break 330, you will realize profit at 330,
and you still collect Premium,

Warning:
Do not sell naked calls (you dont have any
aapl shares now) , coz your potential risk will be unlimited.

Comments

How do you screen for covered call plays?
Reply
However, if you wanna short this stock and you are looking for a limit sell area, you could write a call with strike at that limit sell area and collect the premium as well. This is to illustrate the fact that short selling will give you the same flat price exposure as a sold call that was exercised.
Reply
tntsunrise Zoen_Trieste
@Zoen_Trieste, Yes it is the same thing
Reply
Good analysis
Reply
Excellent Analysis And very well explained..interesting things
Reply
Nice strategy, hopefully VIX goes up for you to collect higher premiums.
Reply
tntsunrise Pooshoes
@Pooshoes, I dont need VIX to go high, I just need price to go flat or down. no need crash. if i am very confident that aapl may crash, i would rather choose to buy put option. not go for covered call
Reply
YBearBull tntsunrise
@tntsunrise, very confident that appl almost doubled lol
Reply
Keep it up.
Reply
As usual u r the best excellent work..keep it up..
Reply
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