On June 9, 2023, I bought an additional 5 shares of Amazon (NASDAQ: AMZN) stock, paying $123.83 per share for our Partnership Fund.
We are now holding 30 shares of AMZN in our Partnership Fund portfolio.
Using dollar-cost averaging our average cost per AMZN share is $109.10
70 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 April 2026.
I decided to buy additonal 5 AMZN shares this month, after my options trades with TSLA went out of control and I closed the position with loss. The same amount of money I took as a loss, I decided to put into buying AMZN shares.
If we had 100 shares of AMZN today, we could sell July 14th, 2023, covered call (31 days to expiry) with a strike price of $130, to get a $3.08 premium. In case our shares would get called away on expiry we would realize $2,398 in income from our total investment.
If our options would expire worthlessly, we would simply pocket $308, or about 2.82%, 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 $312 from selling options on our existing position. $312 on 30 shares equals about $10.4 per share.
I hope to reach 100 shares of AMZN in the portfolio and look that at least 10 shares would be bought from the capital earned from selling options premium.
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