Two Stocks Ideal for Selling Options at Current Prices

by | May 9, 2024 | Fidelity IRA | 1 comment




I had a member ask what stocks she should look at during or after a correction. Today I am going to share two that are at a great price and why I am considering opening positions in both.

I have been on a journey to learn the right way to trade stock options. Along the way I have decided to share with others both my successes and failures. My hope is that others can learn and shorten their journey to learn how to incorporate one of the best ways to make passive income.

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Uncle Jim

My Blog with my options strategies, monthly reviews, and lessons on getting started.

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Selling options can be a lucrative strategy for investors looking to generate income and mitigate risk in their portfolio. By selling options, investors can collect premium income upfront in exchange for taking on the obligation to buy or sell a stock at a specified price within a specified time frame. While selling options can be a complex strategy that requires an understanding of market dynamics and risk management, it can be a profitable way to earn consistent returns in a volatile market.

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When choosing stocks to sell options on, it’s important to select companies that have stable fundamentals, a track record of consistent growth, and sufficient liquidity in their options market. Two stocks that are currently priced right for selling options are Apple Inc. (AAPL) and Amazon.com Inc. (AMZN).

Apple Inc. (AAPL) is a technology giant that has consistently delivered strong revenue and earnings growth over the years. The company’s stock price has been on an upward trend, making it an attractive candidate for selling options. With a market capitalization of over $2 trillion, Apple has a large and liquid options market, which makes it easy for investors to enter and exit option trades at favorable prices.

Amazon.com Inc. (AMZN) is another technology giant that has seen impressive growth in recent years. The company’s e-commerce business, along with its cloud computing division, has fueled its revenue and earnings growth. Amazon’s stock price is currently trading at a high level, making it an ideal candidate for selling options. The company also has a large market capitalization and a liquid options market, making it a suitable choice for options traders.

When selling options on these stocks, investors can choose from a variety of strategies, including covered calls, cash-secured puts, and credit spreads. These strategies allow investors to generate income from the premium income received from selling options, while also managing risk by setting clear parameters for potential losses.

It’s important for investors to conduct thorough research and analysis before selling options on any stock. By understanding the company’s fundamentals, market dynamics, and options pricing, investors can make informed decisions that maximize their chances of success. Additionally, investors should consider their risk tolerance, investment goals, and overall portfolio strategy when selling options.

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In conclusion, Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) are two stocks that are priced right for selling options. With their strong fundamentals, consistent growth, and liquid options market, these companies offer attractive opportunities for investors looking to generate income from selling options. By implementing sound risk management practices and selecting the right options strategies, investors can potentially earn consistent returns from selling options on these stocks.

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1 Comment

  1. @jpperi548

    Thanks for this information. I really enjoy your content

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