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  1. #1
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    May 2018
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    Money i can make with covered calls for apple?

    new to options. selling covered calls is a easy play i know, just wondering what the actual dollar amounts are
    current apple price 183
    i already have 50 shares of apple
    if i get 50 more shares. 100 shares of apple would be valued at 18.3k
    if i sell covered calls on those 100 shares, say daily calls or something, at normal price. ones i can sell each day maybe.
    how much money would i get each day i sold a covered call, or whats the usual price to expect at a 183 dollar share price
    i understand as share moves up and down, the price of the call goes up and down too

  2. #2
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    May 2018
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    68

    Re: Money i can make with covered calls for apple?

    Slightly less than buying and holding long term.

  3. #3
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    Re: Money i can make with covered calls for apple?

    Quote Originally Posted by BloodClaw View Post
    Slightly less than buying and holding long term.
    This is beyond incorrect. What makes you think that holding long term is better than lowering cost of ownership?

  4. #4
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    Re: Money i can make with covered calls for apple?

    Quote Originally Posted by Beatz View Post
    This is beyond incorrect. What makes you think that holding long term is better than lowering cost of ownership?
    Mounds of literature and logical thought processes. Also taxes.

  5. #5
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    Re: Money i can make with covered calls for apple?

    Quote Originally Posted by BloodClaw View Post
    Mounds of literature and logical thought processes. Also taxes.
    Literature by ďqualified investment gurusĒ? :). Taxes arenít all that bad. Lowering cost basis consistently still yields greater returns even with short term capital gains taxes.

    I actively trade my options account with 20-22% yearly returns. You think itís better I enjoy my 8% returns to prevent my higher cap gains tax? And thatís 8% in a great year assuming you had the overall market exposure which most donít. Just because SPY is up 8% wonít mean AAPL is too.

  6. #6
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    May 2018
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    Re: Money i can make with covered calls for apple?

    That's great!

  7. #7
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    May 2018
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    131

    Re: Money i can make with covered calls for apple?

    I'm with him. I don't mind paying my share of society's upkeep (taxes). I make on average 3% a month selling covered calls and put spreads on highly risky things that I hedge highly. Plus market appreciation.

    Only thing that keeps me up at night is the thought of them fixing the US healthcare system.

  8. #8
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    May 2018
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    65

    Re: Money i can make with covered calls for apple?

    Doesn't this stock pop a little too much for covercalls?

  9. #9
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    May 2018
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    131

    Re: Money i can make with covered calls for apple?

    Quote Originally Posted by BigSmoke View Post
    Doesn't this stock pop a little too much for covercalls?

    I'm of the opinion the market is rigged and there is zero advantage to options other than perhaps leverage.
    Think about it. The b/a on Apple and SPY is usually in the pennies.


  10. #10
    Join Date
    May 2018
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    65

    Re: Money i can make with covered calls for apple?

    Quote Originally Posted by Beatz View Post
    I'm of the opinion the market is rigged and there is zero advantage to options other than perhaps leverage.
    Think about it. The b/a on Apple and SPY is usually in the pennies.

    I'm curious about something related to options. I've noticed the premium paid for contracts tend to make the break even price of each option roughly equal the same. However, I've noticed often the breakeven prices will be slightly off from each other based on the different strike prices. Any idea what causes these differences and whether these constitute inefficiencies in option pricing which can be exploited?

  11. #11
    Join Date
    May 2018
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    37

    Re: Money i can make with covered calls for apple?

    Donít sell daily or short dated calls. Sell 30-45 days out at 30 delta. Statistically better than another other timeframe while still staying long the position. Once the call is breached, let the stock get called away. Then sell 30-45 day out 30 delta put to eventually be reassigned stock. Never buy stock straight out.If you have 50 shares now and want to buy another 50...sell your 50 now and have no stock position and just sell the 30 delta put.

  12. #12
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    May 2018
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    131

    Re: Money i can make with covered calls for apple?

    I'm not sure what your asking. I think your asking about skew. It's just raising the implied volatility at the extreme out of the money prices.
    Retail can't exploit shit. Also with penny spreads on spy what exactly do you think is exploitable?
    Anyways that's just my opinion. If you can time the market or want to make very specific plays options are good. The are good to leverage also. Like of the market dipped and you have lvl3 permissions an itm put is the same as a covered call. It's a much better use of margin. But at this point I just focus on maxing out mine and the wife's 401k and the ira. Beyond that I have decided to blow any money beyond those amounts.

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