GOOG Deep In the Money Covered Call

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.



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