Covered call strategy explained ahead of Apple earnings

PWR -2.57% AJG -1.20% APG -2.87% SIMO +0.29% CUBE -1.40% 3 more

1. 1Apple (AAPL) is set to report its fiscal third-quarter results after the close on Thursday, July 30, following three consecutive all-time highs.
2. 2An example covered call was presented: with the stock near $340, selling an August 21 call with a $355 strike would yield a premium of about $4.35 per share, or $435 in total.
3. 3Covered calls are advantageous in scenarios of slight gains, sideways trading, or modest declines, with the trade-off being the forfeiture of any upside above $355.

Source Yahoo Finance Video +7 · View original ↗

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