Tag Archives: $M

Covered Call Ideas for August Expiration

Last month’s covered call ideas were largely successful as FB, AAPL, TSLA and GOOGL were all full profits while WYNN broke-even. As we head into the next month, the big issue with covered calls is the earnings risk. In navigating this risk I have put together a mix of low and high risk covered calls to average out at around 1-2% return. With the implied volatility very cheap here as the VIX is very low, it is hard to make great returns on covered calls. In high volatility environments it is much easier to make 4-5% a month but at the same time the risks are greater because stocks have crazier moves.

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