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Overwriting Apple has been one of the top "sell calls on your longs" ideas at JPM recently. With the stock hitting new ATHs as of writing this, you will get even more for your calls.
The point is not trying to guess the top in Apple, but from a risk management point of view Apple overwriting strategies make a lot of sense.
Retail armyhas been buying tech calls en masse, leaving dealers short gamma. Since the FAANGs have exploded, short gamma dealers have found themselves in a lot of trouble, chasing deltas higher, and at the same time seeing vols explode making "real hedging" even more expensive.
Dealers tend to be reluctant to buy back higher vols as they have a big belief in their "theoretical" models. Since volatility is mean reverting, dealers tend to sell more and more volatility as "it must revert".
In the meantime, retail army buys more and more options, dealers chase deltas higher and higher etc. Of course, the same works on the way down, but inversely. When the stock goes through the strikes on the way down (if ever) all those chased long deltas must be sold again.
We can write a book about the above "dynamics", but the main point is, Apple vols have exploded due to the above, and anyone that is getting a bit "nervous" about their Apple longs, but must be long, should look at overwriting strategies here.
Below charts show Apple implied vs historical 3 mths vols as well as the simple sold November 135 call.
click arrow on the chart to see pay out profile.