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%

Spotify

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

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.

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

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.

Amazon

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%

Netflix

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%

RH

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

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.

Boeing

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%

Nike

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%

PayPal

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%

Williams-Sonoma

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