Make Money with Apple's Top Income Strategy

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Investing in the stock market can feel like a rollercoaster ride, especially during volatile times. But what if there was a way to generate reliable income regardless of market conditions? Mark Yegge, an experienced investor, demonstrates how to achieve consistent returns using a covered call strategy with Apple (AAPL) stock. In this post, we’ll break down his step-by-step approach to building a profitable position in Apple using the in-the-money covered call strategy.

Why Choose Apple for a Covered Call Strategy?

Apple is a household name and one of the most stable companies in the tech sector. Despite short-term market fluctuations, its long-term growth trajectory remains strong. For investors looking to earn consistent income, Apple offers an excellent opportunity.

Key Benefits of Choosing Apple:

Strong market presence and brand recognition
Consistent financial performance
Reliable dividend payments
High liquidity and trading volume

Understanding the In-the-Money Covered Call Strategy

Mark Yegge’s approach involves buying Apple stock and simultaneously selling call options against it. Instead of selecting out-of-the-money calls, he prefers in-the-money (ITM) covered calls to generate income and provide downside protection.

Step 1: Buying the Stock

Mark purchased 200 shares of Apple at approximately $212 per share.

Step 2: Selling the Call Option

He sold two contracts of 200-strike calls with an expiration date one month out.
The premium collected was around $15.95 per share, totaling $3,190.

Step 3: Calculating the Breakeven Point

By subtracting the call premium from the purchase price, Mark's breakeven point is $196.23.
This provides substantial downside protection in case Apple’s stock price declines.

Step 4: Collecting the Juice

The main objective is to earn the "juice" — the premium received from selling the call.
Even if the stock remains flat or slightly drops, the premium earned ensures consistent returns.

Why In-the-Money Covered Calls Are Effective

Downside Protection

The premium collected acts as a buffer against losses. In this case, Mark has nearly $15.95 per share of cushion, providing protection if Apple’s stock drops to the $196 level.

Consistent Income

Selling ITM calls ensures that the premium collected remains substantial, delivering reliable income month after month.

Flexible Strategy

If Apple’s stock continues to decline, Mark can roll his calls down, sell additional calls, or exit the trade. Conversely, if Apple rises, he can continue capturing premiums or adjust his position to capture further gains.

Example Trade Overview

Stock Purchase: 200 shares at $212
Call Sold: 200-strike call for $15.95 per share
Total Premium Collected: $3,190
Breakeven Point: $196.23
Potential Annual Return: 22% if repeated monthly

Key Takeaways

Generate Steady Income: Selling covered calls can produce regular cash flow, even in uncertain markets.
Reduce Risk: Using in-the-money calls lowers your breakeven point and provides downside protection.
Adaptable Strategy: Easily roll calls or adjust positions based on market conditions.

This strategy is especially suitable for investors who want to earn income from their existing stock holdings without relying solely on price appreciation.

Life-Improving Tips for Smart Investing

Stay Calm in Volatile Markets: Avoid emotional decisions by focusing on your income generation strategy.
Track Your Trades: Maintain a trading journal to analyze your decisions and adjust your strategy as needed.
Diversify Your Portfolio: Combine covered calls with other investments to spread risk and maintain balanced returns.
Keep Learning: Continuously refine your strategy by learning from successful traders like Mark Yegge.

FAQs About Covered Call Strategy

What happens if Apple’s stock price rises above $200?

If the stock closes above the strike price at expiration, the shares will likely be called away. You’ll still keep the premium earned from selling the call.

Can I lose money with this strategy?

While the premium provides downside protection, losses may occur if Apple’s stock drops significantly below the breakeven point.

How often can I apply this strategy?

You can repeat this strategy monthly or as often as suitable call options become available.

Is this strategy suitable for beginners?

Yes! Covered calls are a great starting point for beginners looking to generate consistent income while managing risk.

Call to Action

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Conclusion

By implementing the in-the-money covered call strategy, Mark Yegge is successfully generating reliable income from Apple, even in a challenging market. This approach provides downside protection, delivers regular cash flow, and reduces the stress of market volatility.

If you’re seeking a practical way to earn income from your investments, consider applying the covered call strategy with a solid stock like Apple. Start small, manage your risks, and watch your portfolio grow.

Make Money with Apple's Top Income Strategy

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