7 December, 2022 seen 39On November 18, 2022, we bought an additional 1 share of Amazon (NASDAQ: AMZN) stock, paying $93.57 per share for our …
On November 8, 2022, we bought an additional 2 shares of Amazon (NASDAQ: AMZN) stock, paying $89.47 per share for our Partnership Fund.
We are now holding 10 shares of AMZN in our Partnership Fund portfolio
Using dollar-cost averaging our average cost per AMZN share is $112.13
90 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 December 16, 2022, covered call (38 days to expiry) with a strike price of $125, to get a $0.13 premium. In case our shares would get called away on expiry we would realize $1,300 in income in about 38 days, that's a potential return of 11.59%
If our options would expire worthlessly, we would pocket $13 or about 0.11% potential return in about 38 days, and start over by writing additional call options.
We could choose a lower strike price, say $120 or $105, I would maybe agree on a $115 strike price, as I wouldn't like to go with a strike price under our break-even price ($112).
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