Write Covered Call:
1) Buy 100 shares/$5517.00
2) Write 25th Aug $57 call
Premium/Credit: $71 (0.71 x 100)
3) Max. return: $254 at $57 expiry
4) Always, put a stop loss: $54.50/if hit then buy & get out.
Remember: You want expires from 30 days to 60 days, ideal is 45 days (around)
*If $57.00 is not hit by 8/25/17, then write another covered call.
1) Buy 100 shares/$5517.00
2) Write 25th Aug $57 call
Premium/Credit: $71 (0.71 x 100)
3) Max. return: $254 at $57 expiry
4) Always, put a stop loss: $54.50/if hit then buy & get out.
Remember: You want expires from 30 days to 60 days, ideal is 45 days (around)
*If $57.00 is not hit by 8/25/17, then write another covered call.