On October 25, 2023, I bought an additional 5 shares of Amazon (NASDAQ: AMZN) stock, paying $123.16 per share for our partnership fund
Amazon.com, Inc. is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
We are now holding 50 shares of AMZN in our stock portfolio.
Using dollar-cost averaging our average cost per AMZN share is $117.43
50 shares to go once we are able to start selling covered calls and generate extra income from AMZN stock. At the current investment speed (5 shares per month) we could get there in the next 10 months or around August 2024.
If we had 100 shares of AMZN today, we could sell November 24, 2023, covered call (28 days to expiry) with a strike price of $130, to get a $3.42 premium. In case our shares would get called away on expiry we would realize $1,599 in income from our total investment.
If our options would expire worthlessly, we would simply pocket $342, or about 2.9%, and start over by writing additional call options.
Also would lower my our buy price by $3.42 - break even at $114.01
