As I’ve been saying, I’m looking to exit our Apple (AAPL) position. However, I have no intention of doing so at a loss of more than a few pennies. Therefore, rather than sell our shares outright, I am recommending we sell another call to reduce our cost basis on the position.
If our shares are called away next Friday, we will exit with a small profit.
Note that this trade is only for people who already own shares of Apple uncovered from a previous position.
Current Stock Price: $125.02
Cost Basis: $125.53
Action: Sell to open the AAPL Jun Week Two (6/11) 125 Call
Current Option Price: $1.49-$1.50
Recommended Limit: Set your initial limit order at $1.49, but adjust as needs to sell a call today
New Cost Basis: $124.04
Expiration: After the close on Friday, June 11
Potential Rate of Return: 0.7% in 123 days, or 2% annualized, if our shares are called away