3 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 three stock and options ideas.

Lyft, Inc

Symbol: LYFT

Price: $15.63

Strike Price: $18.00

Expiration: 2/24/2023

Premium: $0.64

Option Income (1,000 shares): $640

Potential Stock Return: 15.16%

Potential Option Return: 4.09%

Potential Total Return: 19.26%

Potential Annualized Return: 242.38%

Royal Caribbean Group

Symbol: RCL

Price: $63.72

Strike Price: $71.00

Expiration: 2/17/2023

Premium: $0..92

Option Income (1,000 shares): $920

Potential Stock Return: 11.42%

Potential Option Return: 1.44%

Potential Total Return: 12.87%

Potential Annualized Return: 213.51%


Symbol: SPOT

Price: $101.19

Strike Price: $118

Expiration: 02/03/2023

Premium: $1.00

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

Potential Stock Return: 16.61%

Potential Option Return: 0.99%

Potential Total Return: 17.60%

Potential Annualized Return: 803.03%

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