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:
|Target CC Sell||$87.72||BreakEven||$79.34|
|Option Strike||$80.00||Ann Return||14.34%|
|Option Price||$13.00||Potential Gain||$0.66|
I have the potential for at 14.34% annualized return and over 14% downside protection. We will see how this trades as earnings approach.