04-07-2014, 03:19 PM
I added to my over sized AAPL position today. Won't be over sized when options get exercised this month, as most shares will get called. Just picked up a few shares as a cover call play with modest objectives. Bought @$524; sold Oct $525 calls for $33.50. If the shares get called, then I make about 9% for the holding period of roughly six months. If the shares don't get called, then I own shares of Apple with an effective share price of under $500. Either outcome is satisfactory. I chose October strike because it goes out about six months to give a decent contract price, also if the market has its typical October weakness the shares are less likely to get called, and I wouldn't mind having a small core of AAPL to be held for longer term.
Alex