Market Overview

Kevin Kelly's Apple Trade

Related AAPL
Loup Ventures: Tech Giants Have Invested In 217 AR, VR Startups
Needham's Laura Martin Offers A Few Reasons Roku Shouldn't Be Affected By Amazon's Apple TV, Chromecast Offering
Reuters: Apple increases iPhone prices in India after tax hike (Seeking Alpha)

Kevin Kelly, the managing director of Kelly & Co., spoke on Bloomberg Markets about a covered call strategy in Apple Inc. (NASDAQ: AAPL).

Kelly said people are always worried about putting new money to work in names that are hitting new highs, especially in names like Apple, which reached a new high on Tuesday. He added that one way to get a long exposure is with a covered call strategy. Kelly suggested that traders should buy the stock and sell the January 180 call for around 2 percent of the underlying. The strategy offers a potential upside of 12.50 percent and a 2 percent protection.

Posted-In: Bloomberg Markets Kevin KellyCNBC Options Markets Media


Related Articles (AAPL)

View Comments and Join the Discussion!