How to Make $13K Per Month with Apple: Step-by-Step Guide

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Have you ever wondered how to generate consistent income from stocks like Apple? The video by Mark Yegge outlines a detailed strategy to potentially earn $13,000 per month using a combination of options trading and long-term investment strategies. In this blog, we'll break down his process, explain how it works, and provide tips for beginners to get started.

The Strategy: Combining Long-Term Investment with Weekly Income

Understanding Apple's Stock Behavior

Chugging Stock: Apple is known for its consistent upward trend, often described as a "chugger." It may not always have explosive growth but offers stable returns.
Current Opportunity: With Apple's breakout at around $238-$240 and projections of $360 over 6-12 months, Mark Yegge sees this as an excellent opportunity for both short-term and long-term gains.

Key Market Signals

Fundamentals: Apple has strong earnings per share, high return on equity, and consistent product sales.
Seasonality: The holiday season and new product launches, like the iPhone 16, add potential boosts to Apple's stock performance.

Using Options for Weekly Income

Mark Yegge employs a strategy involving synthetic options and covered calls. Here’s how:

Buy Synthetics: Instead of purchasing Apple stock outright, buy synthetic options (deep-in-the-money call options with a high delta). This reduces capital investment while maintaining control over 100 shares per contract.
Sell Covered Calls: Write call options slightly out of the money to earn premiums every 10 days. For example, selling $240-$242.50 calls generate a 1%-1.6% return per week.

The Math Behind the Income

Capital allocation for 20 contracts: $69,600.
Weekly income from selling calls: $4,620.
Annualized return if reinvested: 237% (based on consistent market conditions).

Life-Improving Tips

Start Small

If you're new to options trading, practice with fewer contracts to understand the mechanics without overcommitting capital.

Stick to Proven Stocks

Focus on reliable stocks like Apple that have predictable patterns and strong fundamentals.

Learn About Delta and Theta

Understand how these metrics impact your synthetic options and covered calls. A high delta means your option closely follows stock price movements.

Set Clear Goals

Decide whether you’re prioritizing short-term income, long-term growth, or both.

Monitor the Market

Regularly check for changes in the market that may affect your trades. Adjust your strategy when necessary, especially during bearish trends.

FAQs

Q: What is a synthetic option?
A: A synthetic option mimics owning stock through a combination of deep-in-the-money call options and corresponding strategies. It reduces the capital required compared to purchasing shares directly.

Q: How much capital do I need to start?
A: The strategy requires a significant initial investment. For example, controlling 20 contracts costs around $69,600, but you can scale down to fewer contracts if you're starting small.

Q: Is this strategy risk-free?
A: No investment strategy is risk-free. While this method reduces capital exposure, it still carries risks like market downturns and incorrect predictions about stock movements.

Q: How do I handle a market downturn?
A: Adjust your covered calls or consider rolling options further out to maintain income while waiting for stock recovery.

Call to Action

Ready to take control of your financial future? Start by studying options trading and practicing with small positions. If you found this guide helpful, subscribe to the blog for more trading tips and leave a comment with your thoughts or questions.

Get started today

Conclusion

Generating $13K per month from Apple stock may seem daunting, but with the right strategy, it’s achievable. Mark Yegge’s approach to combining synthetic options with covered calls is a smart way to maximize returns while minimizing capital risk. Whether you're an experienced investor or a beginner, there’s a lot to learn and implement from this strategy.

How to Make $13K Per Month with Apple: Step-by-Step Guide

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