Wait for chart to top out, then sell calls against your position. Make sure they are at least a month out and OTM. I am fairly certain stock price is headed to 400 eventually unless some epic news comes in.
Watch MACD, stochs, and RSI on 5 day 60 min chart. When they all top out, not a bad time to sell calls short term. Buy them back when they all are bottomed. You can do same with daily for longer term. Only downside is if their is major announcement.
So when Apple announces a dividend increase, share buy back, china mobile deal, new product, search engine or other service enhancement, or any of the other 10 possible catalysts apple and it's 140 billion in cash has at it's arsenal you lose out on 100/share profit.. Brilliant... Just sit tight like Tim suggested. You will save yourself alot of agony. If you really can't stomach the losses you are probably overleveraged. I am currently holding 700 shares, but I'm willing to lose 50%. That's the kind of stop loss that keeps walstreet from scaring you out of your winning position. The bottom is forming but make take awhile so you may make some extra profit by doing your method, but you stand to lose a lot too.. Don't do it earnings week for sure!
You sell covered calls at the tops, not the bottoms. Unless, of course, you want to give up your shares just as the market turns in your favor. If you think it's still going down, buy protective puts or vertical put spreads (to keep the cost down).
I said to sell calls when chart tops out. Therefore it would be on another dead cat bounce. Selling calls on all the dead cat bounces since slide began would have been quite profitable. You always run the risk of a sudden turn around on some kind of announcement. You need to know how to manage your position.
I think shortinguy is suggesting that this is the top (425) for the next two months. So selling covered calls at the perceived top is smart. I would opt for buying protecitve puts, however. So you are both right! Here are some lollipops.