This naturally makes shareholders wonder how to enhance returns or protect gains.
If you already own Amazon shares, a good options strategy is a Covered Call strategy.
The purpose is to generate extra income from your existing shares. You are bullish long term but you don't mind selling some shares at a higher price.
How it works:
You sell a call option against your AMZN shares. You collect a premium upfront. If AMZN rises above your strike price, your shares may be called away but at a profit.
This options strategy is great for investors who want cash flow without giving up their long term conviction.
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- icycrystalยท01-11 18:33TOPthanks for sharing2Report
- zumaยท01-11 08:34thx1Report