8 May, 2023 seen 32At the end of April 2023, I was managing 3 small investment portfolios. The total value of all portfolios combined was…
On October 28, 2022, we bought an additional 1 share of Amazon (NASDAQ: AMZN) paying $100.47 per share for our Partnership Fund.
I decided to buy an additional one share after Amazon stock price dipped more than 10%, after negative guidance for Q4 2022
We are now holding 8 shares of AMZN in our Partnership Fund portfolio
Using dollar-cost averaging our average cost per AMZN share is $117.67
92 shares to go once we will be able to start selling covered calls and generate extra income from AMZN. We are looking to get there by April / May 2023
If we had 100 shares of AMZN today, we could sell November 18, 2022, covered call (3 weeks options) with a strike price of $125, to get a $0.18 premium. In case our shares would get called away on expiry we would realize $751 income in about 21 days, that's a potential return of 6.36%
If our options would expire worthlessly, we would pocket $18 or about 0.15% potential return in about 21days, and start over by writing additional call options
We could choose a lower strike price, say $120 or $105, but if I would maybe agree on a $120 strike price i wouldn't go with a strike price under my break-even price ($117).
About Amazon inc
Amazon.com, Inc. is an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It has been referred to as "one of the most influential economic and cultural forces in the world", and is one of the world's most valuable brands