By Mike Scanlin:

Apple (AAPL) is one of the most widely held stocks today, and for good reason. A partial list of reasons to own the stock this year:

  • iPhone 5
  • iPad 3
  • iTV 1
  • potential stock split
  • potential dividend
  • $100B in cash and growing
  • P/E much less than their growth rate

One strategy is just to own the stock and wait for the market to give AAPL the value it has earned, and will continue to earn. Nothing wrong with that.

Another strategy, which is a bit more conservative and could generate some income while you wait, is to write covered calls against AAPL. Since AAPL trades weekly options there is an opportunity to generate 52 premium payments per year.

ITM, ATM, or OTM?

If you are risk averse and worried about macro market events, like a Greek default, then you could sell in-the-money calls. You'll capture a point or two of


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