4 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 four stock and options ideas.


Symbol: AMZN

Price: $92.44

Strike Price: $105

Expiration: 2/17/2023

Option Premium: $3.60

Option Income (1,000 shares): $3,600

Stock Return: 13.59%

Option Return: 3.89%

Total Return: 17.84%

Annualized Return: 80.77%

Caesars Entertainment

Symbol: CZR

Price: $48.86

Strike Price: $54

Expiration: 12/30/2022

Option Premium: $1.37

Option Income (1,000 shares): $1,370

Stock Return: 10.52%

Option Return: 2.80%

Total Return: 13.32%

Annualized Return: 162.11%


Symbol: NFLX

Price: $280.88

Strike Price: $310

Expiration: 03/17/2023

Option Premium: $20.55

Option Income (1,000 shares): $20,550

Stock Return: 10.37%

Option Return: 7.32%

Total Return: 17.68%

Annualized Return: 60.32%


Symbol: RH

Price: $275.90

Strike Price: $305

Expiration: 12/16/2022

Option Premium: $6.40

Option Income (1,000 shares): $6,400

Stock Return: 10.55%

Option Return: 2.32%

Total Return: 12.87%

Annualized Return: 293.53%

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 30, 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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