top stocks to sell covered calls

If you own 13000 worth of Walmart split among 100 shares your cost basis is 130. If the stock falls to 90 we buy the shares for 13k and keep our 25k premium placing our cost to buy the 100 shares at 105k.

Covered Call Option Trading Strategy Explained

ORCL Verizon Communication NYSE.

. Johnson Johnson JNJ JNJ Quotes by TradingView. A Covered Call or buy-write strategy is used to increase returns on long positions by selling call options in an underlying security you own. A covered call is a popular options strategy used to generate income from investors who think stock prices are unlikely to rise much further in the near-term.

List of 2022s Best Stocks for Covered Calls. COP Ford Motor NYSE. Covered call writing can also lower your cost basis for buying stock.

Best stocks Ive seen are PLTR OPEN AFRM and MILE. Im searching for stocks with upwards potential for the future preferably quite some volatillity higher option prices and not to high share price pref. Morgan Stanley MS 5.

Instead of just Buying Stock to Sell CCs start earlier in the process - Lets take your AAPL as example currently trading at 13537 - Right now you can Sell a Cash Secured Put on AAPL w Mar 05 expiry and 132 Strike for 200 - If AAPL makes it to Mar 05 without dipping to 132 Strike great you just made 200 and are ready to go again - if it does dip and you get assigned great. A covered call is constructed by. Facebook FB is one of the top 5 constituents of Nasdaq ETF QQQ and makes up about 4 of the fund.

At least 10 ITM and maybe even 15 or 20 ITM. The 10 best stocks for a covered call are as follows. For a free trial to the best trading community on.

Exxon Mobil XOM 4. Stay on the left side of the Moneyness slider. It currently trades for 108 if I sell a deep ITM put 1 month out at say 130 for a premium of 25.

When selling covered calls I generally recommend selling on 13 to 23 of you position. NVDA Ford Motor Company NYSE. Ultimately the best covered call options are the ones where you make money consistently.

DVN Advanced Micro Devices NASDAQ. It is an American pharmaceutical company. List of Best Stocks for Covered Calls in 2022.

For example lets say that the XYZ Zipper Company paid a 050share dividend on June 1. If you sell a covered call option on 100 shares against those shares for 115 your cost basis drops by 115 per share. Looking at 4 situations - the stock drops the stock stays stable the stock rises the stock goes to the moon.

QYLG as well as the Global X SP 500 Covered Call Growth ETF XYLG offer nice middle grounds between the underlying index outright and investing in. That means ED stock could trade 221 lower between now and Aug. But you should be aware that dividends do play a role in call option pricing.

The company was established in 1886. Covered Calls Advanced Options Screener helps find the best covered calls with a high theoretical return. 19 and the covered-call trade would still break even.

I like the idea of selling covered calls in order to add extra profit besides the stock price itself. The premiums arent gigantic but if the stock isnt called away then that premium you just sold could be. Best Covered Call Stocks In 2022 ConocoPhillips NYSE.

128 call for a net debit of 495. If some gets called away at 105 its been a heckuva run. COP ConocoPhillips engages in the exploration production transport and marketing of crude oil bitumen natural gas natural gas liquids as well as dissolved gas on a worldwide basis.

Right off the bat youve earned 408 from the covered call. The 105 January calls are trading over 2 so selling against 13 of a position would get. 120 call while selling the Aug.

Then you sell 1 covered call contract out of the money 417 strike that expires August 28 for 408. Choose stocks you would be happy to hold for the long term anyway and then increase their annual yield by writing calls against them every week or month. Suppose today July 28 2022 the SPY Trades at 41658.

The 2 in premium received also gives a small buffer on the downside of 221. If risk of a downturn is high trim some of the stock position outright at. Berkshire stock may be the perfect stock for covered calls.

While this is not a recommendation to buy or sell the top stocks for covered calls from September 2021 were. You sell short a call option against that stock 1 option controls 100 shares. PFZR Devon Energy NYSE.

PEP Advanced Micro Devices NASDAQ. In theory on the day a company pays a dividend the stock should trade lower by the amount of the dividend because that money is no longer owned or controlled by the company. Always think that the premium is worth the threat you are taking on the covered call profession.

You buy 100 shares of the SPY for a total outlay of 4165800. Based in Silicon Valley of California it operates a social network and provides a platform for software developers. Ive been making bank selling covered calls 20 higher.

Volatility is high and theyre all good companies. 10 rows Ease of Use -The main reason to purchase a stock to sell covered calls is to alleviate as.

Double Your Income With Covered Calls On 3 Dividend Stocks Seeking Alpha