Financial Services
AXP
American Express Company
Income from American Express (AXP) with covered calls and cash secured puts. Premium card network with loyal customers.
Monthly Premium1.2-2.0%
Annualized Return14-24%
Stock Price$260-290
IV RankModerate (30-45)
Options LiquidityGood
Dividend Yield1.1%
Why AXP for Covered Calls & Cash Secured Puts?
AXP has a premium customer base with high spending. Both a card network and lender, unlike V/MA. Buffett holding adds cachet.
Example Covered Call Trade
AXPCovered Call
Strike Price$290 (6% OTM)
Expiration30 days
Premium$4.50 per share
Return If Flat1.6% ($450)
Return If Called7.6% ($2,080)
Keep Probability71% keep shares
Recommended Strategy for AXP
Sell calls 5-7% OTM to capture moderate premium. Good for dividend growth investors.
Risks to Consider
- Credit losses in recession
- Consumer spending sensitivity
- Competition from premium cards
- Travel spending cyclicality
Analyze AXP Covered Calls Now
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