AAPL · Covered Call 0
Covered call questions for AAPL
What is a covered call on AAPL?
A covered call on AAPL means you own 100 shares of Apple Inc. and sell a call option against them. You collect the option premium as income. If AAPL stays below the strike at expiry, you keep the shares and the premium. If it rises above, your shares get called away at the strike — you still keep the premium plus any gain up to that level.
Which strike should I sell for a AAPL covered call?
It depends on your goal. Selling 2–3% OTM gives a good balance of premium income and upside room. Selling ATM maximises premium but caps your upside immediately. Selling 5%+ OTM collects less premium but gives more room for the stock to run. Use the strike scanner above to compare annualised returns, downside cushion, and probability of keeping shares across every available strike.
How much can I earn from a covered call on AAPL?
Covered call income depends on the strike chosen, expiry date, and current implied volatility. The calculator above shows the exact premium, return if flat, return if called, and annualised return for every strike — updated every 5 minutes with live NYSE/NASDAQ data. Higher IV means richer premiums.
What is the downside of a covered call?
The main downside is capped upside — if the stock rallies hard past your strike, you miss the gains above that level. You still own the stock, so if it crashes the premium only provides a small cushion. Covered calls work best on stocks you're happy to hold long-term and would be comfortable selling at the strike price.
How many shares do I need for a AAPL covered call?
In the US, you need 100 shares of AAPL to sell 1 covered call contract. Each contract covers exactly 100 shares. The calculator lets you adjust position size to match your holdings.
When should I avoid selling covered calls?
Avoid covered calls right before major earnings or events if you want to keep upside exposure — IV spikes make premiums look attractive but the stock can gap well past your strike. Also avoid if you expect a strong directional move and don't want your shares called away. Covered calls are an income strategy, not a directional bet.