When a stock is attacked, this is your only defense.
Downside your money is locked up until you close out the sale of the covered calls.
Shareholders need to SELL a Jan 2017 covered call until this nonsense ceases.
The run may be before the earnings like AMZN
So aat the close sell Jan 2017 market price covered calls for 12% of present value.
IF the run is big, 7 - 9%, so not buy near term calls.
actually the Jan 2017 $745 calls only sell for $87.
So, the conservative 12% play is to hold the stock and ONLY sell these.
Jan 2017 740.00 calls GOOG170120C00740000 84.80 83.80 87.20
The speculating play is to sell thee and buy CHEAP calls with MARKET MONEY
Jan 2017 calls sell for 20% premium over present market price. So you pocket that fat premium...
You buy a weekly near term call for a fraction of that premium.
This gives you 100% upside action and 15% downside protection.
Last week, this worked with AMZN. On Thursday close, Jan 2017 %630 calls bis.ask was $145..
the Jan 29 $630 call was $15...this netted you $127 cash in your pockets.
Stock fell?...who cared!
If the stock ran, your giveaway you already agreed to was $630 + $127 = $757
On the flip side, FB ran.. near term calls ran dollar for dollar. Jan 2017 calls ran only fractionally
Problem with attackers? They slant the perception of reality for those whom were not paying attention
We were here then.
It's been a long time
AAPL was a buyer , as well.
Thus AAPL had a strong bid
for $63.50 on Friday lost no money
If you willing to hold for 12 months, sell a Jan 2017 $635 call for $100+... Maybe higher. It closed at $143 bid/ask.
Your giveaway would be $635+ $100+
Your hedge of initial investment is $635 -$100+