deep in the money calls Jul 14, 2018 World's First Trillion Dollar Company

Five tech companies are currently competing to see who can be the first to achieve a one trillion dollar ($1,000,000,000,000) market cap:

Name Current
Market Cap
Share Price
Trillion $
Share Price
% Gain
To $1T
Apple 941B $193.03 $203.56 5.5%
Amazon 877B $1796.62 $2061.07 14.7%
Alphabet 833B $1201.26 $1441.08 20.0%
Microsoft 801B $104.19 $130.19 25.0%
Facebook 600B $206.92 $345.17 66.8%

Or, visually, courtesy of TheStreet:

race to $1 trillion market cap

Covered Calls On A Trillion Dollar Company

In addition to being large cap tech stocks, these 5 companies also make pretty good covered call candidates, so long as you can handle some volatility. Plus you need a pretty big portfolio to write covered calls on GOOGL and AMZN given their stock prices (because 100 shares of AMZN costs about $180K).

But if you did want to write calls against these, they are all offering 20% or more annualized return for at-the-money (or very near the money) options for next Friday's (July 20) expiration:

covered calls on trillion $ companies for July

If you want to go out to the next monthly expiration (August 17) you will have to deal with an earnings release. Might want to do an in-the-money buy-write to reduce some earnings risk. Here are a few ITM candidates yielding 10% or more annualized return:

covered calls on trillion $ companies for August

These companies have all had pretty good runs recently, so any earnings weakness (or weak forecast) could cause a correction. As always, do your homework, keep position sizes modest, and stay diversified.

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