Yong-Long Lai

These are one of the two highest yielding stock in terms for rental return for August (25 days to expiry) AMZN I wrote in the money to be more defensive, AAPL I wrote an out of the money option and if I get exercise then I will make an extra 1.48%

The Trade – 23rd July 2007
AMZN
Options/Contract = 100
Buy 100 AMZN @ $71.48 ($7,148)
Sell 1 AMZN 70 Calls @ $5.10 ($510)
Time Value: $3.62
Intrinsic Value: $1.48

Net Cost/Breakeven Point: $66.38
Premium: 5.17% ($3.62/$70)

AAPL
Options/Contract = 100
Buy 100 AAPL @ $141.90 ($14,190)
Sell 1 AAPL 145 Calls @ $7.30 ($730)
Time Value: $7.30
Intrinsic Value: $0

Net Cost/Breakeven Point: $134.6
Premium: 5.03% ($7.30/$145)