Everything is up today, but I like Apple (AAPL) more than most because they announced they were starting up production operations in China. Production was stopped with the coronavirus. AAPL is a great company so even if it pulled back with market volatility I think it will always bounce back.
I bought 100 shares of AAPL at $296.20 and sold 1 contract of the 3/6/20 $297.50 Call. I received a premium of $4 for $400. If I get assigned I get another $130 from the stock sale. This would be a 3 day deal for $530. On my $296.20 per share investment it will be a return of 1.7%. Exactly what I look for!
Buy 100 Shares AAPL @ $296.20
Sell to Open 1 AAPL 3/6/20 $297.50 C @ $4.00 (+$400)
This is a Covered Call on a great stock so this trade gets a RiskFactor 1.
Let’s hope things get back to normal soon so we can get back to a steady income.
Successful Trading,
Steve
The Options Coach