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.

Advanced Micro Devices

Symbol: AMD

Price: $63.96

Strike Price: $67.50

Expiration: 1/20/2023

Premium: $1.06

Option Income (1,000 shares): $1,060

Stock Return: 5.53%

Option Return: 1.66%

Total Return: 7.19%

Annualized Return: 218.76%


Symbol: AZN

Price: $70.80

Strike Price: $75

Expiration: 2/17/2023

Premium: $0.88

Option Income (1,000 shares): $880

Stock Return: 5.93%

Option Return: 1.24%

Total Return: 7.18%

Annualized Return: 65.47%

The Walt Disney Company

Symbol: DIS

Price: $93.92

Strike Price: $110

Expiration: 03/17/2023

Premium: $1.38

Option Income (1,000 shares): $1,380

Stock Return: 17.12%

Option Return: 1.47%

Total Return: 18.59%

Annualized Return: 99.79%

Expedia Group

Symbol: EXPE

Price: $94.11

Strike Price: $115

Expiration: 04/21/2023

Premium: $3.04

Option Income (1,000 shares): $3,040

Stock Return: 22.2%

Option Return: 3.23%

Total Return: 25.43%

Annualized Return: 90.11%

Eli Lilly and Company

Symbol: LLY

Price: $362.94

Strike Price: $400

Expiration: 02/17/2023

Premium: $2.30

Option Income (1,000 shares): $2,300

Stock Return: 10.21%

Option Return: 0.63%

Total Return: 10.84%

Annualized Return: 98.96%

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 January 8, 2023, and is subject to change without notice. Data sources: Value Line, YCharts, TD Ameritrade and Yahoo! Finance

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

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