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Fear & Greed Trader
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INDEPENDENT Financial Advisor / Professional Investor- with over 30 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
My company:
RTR LLC
My blog:
Stocks4Income.com
  • Call Writing Strategy - Part 7  0 comments
    Sep 23, 2013 1:37 PM | about stocks: AAPL

    Here is the link to the last update in this series -

    http://seekingalpha.com/instablog/706857-fear-greedtrader/2244802-call-writing-strategy-update-part-6

    I've added another position to the portfolio- (AAPL) , Bought 50 shs @ $485.90 and selling 5 of the Nov 500 "Mini" call option @ 15.70 .

    ( each Mini option equals 10 shs. Instead of the standard 100 shs)

    This represents an addition of shares for me as I already own a LT (AAPL) position in my portfolio.

    With the latest announcement and the jump in shares , it has put in a floor for the stock in the near term.. The risk /reward for writing this position is then very favorable..

    If in fact the stock is not called away , we will have a good fundamental story in a stock that yields 2.6%.

    The following table indicates a 3.8% yield if its not called and a 6.7% yield if called away . The options will expire in less than 2 months.. In addition to the call income we will be receiving the Nov. dividend.

    In conclusion, a solid situation, low risk, decent reward.. , especially in light of what maybe a volatile few weeks ahead for the markets.

    For those that may wish to follow along, I realize AAPL is bouncing around here but if purchased in the next day or two you should be able to duplicate the results I show in the chart. Maybe even better !

    (click to enlarge)

    Best of luck in your investments !!

    Disclosure: I am long AAPL.

    Additional disclosure: I am long numerous stock positions ( all can be viewed here on this blog) I am short Gold via DZZ E Mail : stocks4income@usa.com

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