Buy Apple, do a covered call Jan 22...

Discussion in 'Stocks' started by Cabin111, Oct 22, 2020.

  1. There is an intel. buzz on Taiwan and China may take advantage of a Biden win. APPL would suffer a lot if this ever happens, (and I think sooner or later it might).
    https://www.newsweek.com/china-forces-high-alert-after-us-warship-sails-near-taiwan-1539347
     
    Last edited: Oct 23, 2020
    #31     Oct 23, 2020
  2. kwallace

    kwallace

    What about doing an ATM bull put at 115/100 ($2.20 credit) to get into the shares? $280 risk on $220 reward per order. Scale the orders to how many shares you want to acquire. If it closes OTM you keep the cash and do it again. If it closes ITM you get assigned the shares at a discount from the credit, then proceed to sell the covered call. Jan short call ATM is $8.65 (after hours prices). So now your cost basis is $104.20. If shares close above your short call you get assigned and max profit is $1080 per order (10% in 84 days/43% annualized). If the stock closes below the short you sell another ATM call, reducing cost basis again. Repeat until the stock gets assigned. Danger is AAPL goes bearish, but if it starts trending bearish you buy some puts and put yourself is a collar trade until it finds support.
     
    #32     Oct 23, 2020
    TimtheEnchanter likes this.
  3. Texas too

    nice book
     
    #33     Oct 23, 2020
  4. horizon

    horizon

    You can sell put SPY to earn the premium. Then play the wheel once assigned.
     
    #34     Oct 23, 2020
    TimtheEnchanter likes this.
  5. Cabin111

    Cabin111

    My favorite line in the book...

    "Big hat no cattle"
     
    #35     Oct 24, 2020
    systematictrader likes this.
  6. Opcodes

    Opcodes

    listen to Q3 tesla earnings

    $tsla will eventually have a 1 trillion market cap
     
    #36     Oct 24, 2020
  7. What about sell puts least a part of it to get SLV or GLD and then sell the calls on GLD and SLV - safer than APPL.
     
    #37     Oct 24, 2020
  8. Cabin111

    Cabin111

    Was thinking about Apple this morning. You may think I'm nuts. Has Apple become a value stock rather than a growth stock?? It has been around soooo long, they have their niche (major), and they may grow slowly. They have tons of money on the sidelines with no place to put it.

    Just wondering, when does a company becomes a mature/value company rather than a growth company??
     
    Last edited: Oct 24, 2020
    #38     Oct 24, 2020
  9. Cabin111

    Cabin111

    I looked up on Investopedia...They called Apple a mature company as their example!!

    Real-World Examples of Mature Firms
    Apple Inc. (AAPL) is one of the most innovative technology companies in the world today. As a mature company, Apple has had to adjust to slow and steady revenue growth. However, the company tends to produce higher growth than most mature companies given its industry and loyal client base.

    Revenue or sales for 2019 is expected to be $257 billion while for 2020, the company is expected to generate $269 billion. Those numbers would be approximately 4.6% growth in revenue from year-to-year.
     
    #39     Oct 24, 2020
  10. never2old

    never2old

    AAPL has been a 12x banger over the past 10 years & if history is anything to go by, together with the new 5G, its a good buy.

    https://www.stocksplithistory.com/apple/

    with the right options it could provide a nice income stream

    consider this

    https://www.investopedia.com/articles/investing/022816/top-5-positions-warren-buffetts-portfolio.asp

    "Comprising 49.1% of the Berkshire Hathaway portfolio, Apple Inc. (AAPL) represents Buffett's largest holding. Berkshire Hathaway owns approximately one billion shares in the tech giant"

    compare the last 10 year performance AAPL to QQQ ....
     
    Last edited: Oct 24, 2020
    #40     Oct 24, 2020