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.
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.
Excellent Analysis And very well explained..interesting things
Pooshoes
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Nice strategy, hopefully VIX goes up for you to collect higher premiums.
tntsunrise
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@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
YBearBull
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@tntsunrise, very confident that appl almost doubled lol
BradButler
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Keep it up.
AmyLand
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As usual u r the best excellent work..keep it up..