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Apple hits record highs as investors consider covered calls ahead of earnings
A covered call strategy would pair 100 shares near $340 with an Aug. 21 call, collecting about $4.35 per share and shifting breakeven to roughly $335.65.
Apple shares have logged three straight record closes in 2026, putting investors in a position where they must weigh continued upside against the risk that upcoming earnings could pressure the stock after the run-up, according to Yahoo Finance. The article notes that some investors expect a quieter move and are looking for income while capping gains.
One approach described is a covered call, which pairs ownership of 100 shares with the sale of one call option, because a standard options contract covers 100 shares. The investor receives a premium up front, but could be required to sell the shares at the option's strike price if the stock finishes above that level.
The example given in the piece uses Apple shares near $340, paired with an Aug. 21 call at a $355 strike. The option premium is described as about $4.35 per share, or $435 total, and the article says the premium lowers the position's breakeven to about $335.65 versus $340 for shares alone.
Yahoo Finance also emphasizes the tradeoffs: if Apple finishes below $355, the call would generally expire worthless and the seller keeps the premium, while at higher prices the short call can create losses that must be offset by gains in the stock position. It adds that the covered call reaches its maximum profit of about $1,935 at the $355 strike and provides no crash protection below the revised breakeven.