Apple (AAPL) is bouncing back today with the broader market. A strong earnings report late last month has been overshadowed by concerns about iPhone supply limitations due to COVID-19 lockdowns at the world’s biggest iPhone assembly factory in China.
I expect the production issues will be sorted out relatively quickly. And although analysts are forecasting the company will deliver its lowest Q4 growth in four years, I see Apple as a long-term winner despite near-term headwinds.
I am recommending we sell a call on our uncovered shares to generate income and reduce our cost basis on the position.
Current Stock Price: $143.27
Cost Basis: $155.39
Action: Sell to open the AAPL Nov Monthly (11/18) 145 Call for around $2.23, but adjust as needed to close today
New Cost Basis: $153.16