Discover more from Covered Calls with Reinis Fischer
Latest Stock Buy 5 shares of Apple (NASDAQ:AAPL) $136.72 per share
On June 30, 2021, I bought additional 5 shares of Apple stock (NASDAQ: AAPL) paying $136.72 per share.
With its quarterly dividend of 0.22 cents per share, this latest buy has a dividend yield of 0.64% and will pay us an additional $1.11 every quarter (before tax). Not the biggest income, but when buying Apple stock I'm not looking at a dividend alone. Instead, I'm looking at a potential value growth and options income from selling covered calls.
At the start of January, I got an inheritance of EUR 6,061 - I decided to put this money at work in the stock market - here is a quick recap for June.
Invested an additional EUR 1,058.43 in INTC (Intel) and LI (LI auto) stocks, while the rest is used as a cushion for option trades. It's planned to invest all funds in INTC and LI by the end of the year aka dollar-cost averaging and start selling covered calls on these stocks once 100 reached. In fact we reached 100 shares with LI in June already. For the rest of the months this year will focus on INTC stock
Closed June with +$664.00 income from selling options premium / about 5.42% yield. From the income bought additional 5 AAPL shares.
I now hold in total 13 shares of AAPL, In total, they contribute about $9.72 (after tax) yearly to my dividend income portfolio.
Using dollar-cost averaging our average cost per one AAPL share is $133.21
If we had 100 shares of Apple today, we could sell July 30 2021, covered call (monthly options) with a strike price of $138, to get a $3.35 premium.
It's planned to buy more AAPL shares once a month until we will reach 100 shares and start actually selling covered calls on these positions. It looks like we might get there by the end of 2022
87 shares to go!