Technology
META
Meta Platforms Inc.
Income strategies for Meta/Facebook (META) using covered calls and cash secured puts. High premium potential with volatility considerations.
Monthly Premium1.8-3.0%
Annualized Return22-36%
Stock Price$580-620
IV RankModerate-High (45-65)
Options LiquidityExcellent
Dividend Yield0.35%
Why META for Covered Calls & Cash Secured Puts?
META offers attractive premiums due to its volatility around earnings and AI investments. The stock has strong cash flow from advertising and is a leader in VR/metaverse development. Recent dividend initiation adds income.
Example Covered Call Trade
METACovered Call
Strike Price$640 (8% OTM)
Expiration30 days
Premium$12.00 per share
Return If Flat2.0% ($1,200)
Return If Called10.0% ($6,000)
Keep Probability70% keep shares
Recommended Strategy for META
Sell calls 7-10% OTM to capture premium while allowing for META's growth spurts. Avoid holding through earnings unless comfortable with 10%+ moves.
Risks to Consider
- High earnings volatility
- Metaverse investment uncertainty
- Ad market sensitivity
- Regulatory concerns globally
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