5 Covered Call Ideas

Writing options on stocks you own, or want to own, is an excellent way to generate income and reduce risk. Below are five stock and options ideas.


Symbol: BA

Price: $174.92

Strike Price: $185

Expiration: 12/16/2022

Premium: $2.59

Income (1,000 shares): $2,590

Stock Return: 5.76%

Option Return: 1.48%

Total Return: 7.24%

Annualized Return: 120.17%

Dick’s Sporting Goods

Symbol: DKS

Price: $119.10

Strike Price: $125

Expiration: 3/17/2023

Premium: $10.4

Income (1,000 shares): $10,400

Stock Return: 4.95%

Option Return: 8.73%

Total Return: 13.69%

Annualized Return: 44.21%


Symbol: NKE

Price: $105.97

Strike Price: $115

Expiration: 1/20/2023

Premium: $3.35

Income (1,000 shares): $3,350

Stock Return: 8.52%

Option Return: 3.16%

Total Return: 11.68%

Annualized Return: 74.81%


Symbol: PYPL

Price: $81

Strike Price: $85

Expiration: 2/17/2023

Premium: $6.05

Income (1,000 shares): $6,050

Stock Return: 4.94%

Option Return: 7.47%

Total Return: 12.41%

Annualized Return: 53.28%


Symbol: WSM

Price: $123.72

Strike Price: $130

Expiration: 01/20/2023

Premium: $6.10

Income (1,000 shares): $6,100

Stock Return: 5.08%

Option Return: 4.93%

Total Return: 10.01%

Annualized Return: 64.08%

Options trading involves risk and is not suitable for every investor. Your returns could differ significantly from those posted in this blog, and you could lose money. Do not use margin or leverage to trade options. Please refer to the Characteristics and Risks of Standardized Options to learn more about options trading and writing – https://www.theocc.com/. We have no affiliation with the OCC or the Options Industry Council.

Price and return data is from November 24, 2022, and is subject to change without notice. Data sources: Value Line, YCharts, and TD Ameritrade.

Bill Parrott is the President and CEO of Parrott Wealth Management – www.parrottwealth.com

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