With the market moving up and into resistance I am trying to stay active without taking a lot of risk. Of course, trying to keep risk down also means taking less profit.
As I look at my goals for the 2023 members portfolio, I am up pretty good so far in 2023 and an comfortable pulling my risk back for lower returns.
GOOG is trading at 92.34 and moving into resistance so there could be a pull back. Therefore I want to be careful about how I structure this trade.
I decided to sell the 2/3/23 $80.00 Call. Two things stand out as I enter this trade. One is GOOG is showing earnings on 2/2, therefore if I am still in this trade then I will need to make a decision. Second, I am settling for a 14.34% annualized return. The way the market is today I guess I can live with that.
Take a look at the spreadsheet below:
| Stock$ | $92.34 | Downside Prot | 14.08% |
| Target CC Sell | $87.72 | BreakEven | $79.34 |
| Option Strike | $80.00 | Ann Return | 14.34% |
| Option Price | $13.00 | Potential Gain | $0.66 |
| Option Expire | 2/3/23 | Days: | 21 |
I have the potential for at 14.34% annualized return and over 14% downside protection. We will see how this trades as earnings approach.
