AIG (Covered Call)Hey guys,
I am trying out a monthly covered call stock option where I have bought 200 shares of AIG at $28.55 and have sold 2 calls at the $28.00 dollar strike for a premium of $2.07 each.
By selling the covered call (in-the money), I am able to have a bullish/neutral position in AIG. My options protect me if the stock goes down to 26.48 which is a 7.6% protection (Break Even) while I can make 5.3% (Max Profit) if the stock trades sideways and/or above $28.00. This strategy limits my maximum profit but it also limits my losses while also giving me a higher probability of success. Hit that like button and I'll update you on the position at/near June 19th expiration!