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Is selling 30-90 day OTM Calls on solid companies a viable strategy?

Basically I want more returns then a CD but want less risk then buying stocks.

So my thought was to buy stocks in solid companies. In this case AAPL. Then immediately sell out of the Money Calls 2 months out at a strike price about 20% below the current price.

In this case I bought 100 shares of AAPL for $226.65.

Then immediately sold Dec2019 $180 Calls for $48.50.

I would receive 1 quarterly dividend of $0.77 per share.

Doing this my annualized return would be 7.35%…….as long as AAPL does not drop more then 20% in the next 73 days.

Sure its more risky then a CD. But it returns much more also. And it isn’t as risky as just buying stock.

This strategy is only possible now for me since my brokerage dropped trading fees on stocks/options.

Is selling 30-90 day OTM Calls on solid companies a viable strategy? – RobinHood – Reddit Feed


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