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.

American Express

Symbol: AXP

Price: $157.26

Strike Price: $160

Expiration: 12/16/2022

Option Premium: $2.39

Option Income (1,000 shares): $2,390

Stock Return: 1.74%

Option Return: 1.52%

Total Return: 3.26%

Annualized Return: 108.24%

Costco

Symbol: COST

Price: $487.25

Strike Price: $510

Expiration: 2/17/2023

Option Premium: $16.70

Option Income (1,000 shares): $16,700

Stock Return: 4.67%

Option Return: 3.43%

Total Return: 8.10%

Annualized Return: 39.94%

Genuine Parts

Symbol: GPC

Price: $185.23

Strike Price: $190

Expiration: 03/17/2023

Option Premium: $7.30

Option Income (1,000 shares): $7,300

Stock Return: 2.58%

Option Return: 3.94%

Total Return: 6.52%

Annualized Return: 23.32%

Meta

Symbol: META

Price: $122.53

Strike Price: $135

Expiration: 03/17/2023

Option Premium: $9.10

Option Income (1,000 shares): $9,100

Stock Return: 10.18%

Option Return: 7.43%

Total Return: 17.60%

Annualized Return: 62.99%

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 December 5, 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