Latest Addition to Stock Portfolio: Bought 2 AMZN shares at $130.89

  • On July 3, 2023, we purchased an additional 2 shares of Amazon (NASDAQ: AMZN) stock for our Partnership Fund at a price of $130.89 per share, bringing our total holdings to 33 shares.
  • Utilizing dollar-cost averaging, our average cost per AMZN share is $111.08. This approach helps to mitigate the impact of market fluctuations on our overall investment.
  • We aim to acquire 100 shares of AMZN to commence selling covered calls and generate additional income. With 67 more shares needed, at our current investment rate of 2 shares per month, we anticipate reaching this goal in approximately 34 months, around May 2026.

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AMZN

On July 3, 2023, we bought an additional 2 shares of Amazon (NASDAQ: AMZN) stock, paying $130.89 per share for our Partnership Fund.

We are now holding 33 shares of AMZN in our Partnership Fund portfolio

Using dollar-cost averaging our average cost per AMZN share is $111.08 

67 shares to go once we will be able to start selling covered calls and generate extra income from AMZN stock. At the current investment speed (2 shares per month) we could get there in the next 34 months or around May 2026. 

If we had 100 shares of AMZN today, we could sell August 11th, 2023, covered call (39 days to expiry) with a strike price of $135, to get a $4.28 premium. In case our shares would get called away on expiry we would realize $2,820 in income from our total investment.

If our options would expire worthlessly, we would simply pocket $428, or about 3.85%, and start over by writing additional call options.

To speed things up, I have started already selling options on Amazon stock

So far, since February 6th, 2023 we have already earned about $579 from selling options on our existing position. $579 on 33 shares equals about $17.54 per share. 

I hope to reach 100 shares of AMZN in the portfolio and look that at least 15 shares would be bought from the capital earned from selling options premium.