Technology
AMZN
Amazon.com Inc.
Sell covered calls and cash secured puts on Amazon (AMZN). Complete guide with premium expectations, strike selection, and wheel strategy.
Monthly Premium1.5-2.5%
Annualized Return18-30%
Stock Price$200-220
IV RankModerate-High (40-60)
Options LiquidityExcellent
Dividend Yield0%
Why AMZN for Covered Calls & Cash Secured Puts?
AMZN offers solid premium potential with good liquidity. The stock has diverse revenue streams (e-commerce, AWS, advertising) providing stability. No dividend means all returns come from premium and appreciation.
Example Covered Call Trade
AMZNCovered Call
Strike Price$220 (7% OTM)
Expiration30 days
Premium$4.00 per share
Return If Flat1.9% ($400)
Return If Called9.3% ($1,925)
Keep Probability68% keep shares
Recommended Strategy for AMZN
Target 6-10% OTM calls for income with upside potential. AMZN works well for aggressive wheel strategies. Focus on post-earnings periods when IV is lower.
Risks to Consider
- No dividend income
- E-commerce margin pressure
- Labor and regulatory issues
- AWS competition intensifying
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