14, World's First Trillion Dollar Company

by Mike Scanlin

Five tech companies are currently competing to see who can be the first to achieve a one trillion dollar ($1,000,000,000,000) market cap:

Or, visually, courtesy of TheStreet:

Covered Calls On A Trillion Dollar Company

In addition to being large cap tech stocks, these 5 companies also make pretty good covered call candidates, so long as you can handle some volatility. Plus you need a pretty big portfolio to write covered calls on GOOGL and AMZN given their stock prices (because 100 shares of AMZN costs about $180K).

But if you did want to write calls against these, they are all offering 20% or more annualized return for at-the-money (or very near the money) options for next Friday's (July 20) expiration:

If you want to go out to the next monthly expiration (August 17) you will have to deal with an earnings release. Might want to do an in-the-money buy-write to reduce some earnings risk. Here are a few ITM candidates yielding 10% or more annualized return:

These companies have all had pretty good runs recently, so any earnings weakness (or weak forecast) could cause a correction. As always, do your homework, keep position sizes modest, and stay diversified.

Mike Scanlin is the founder of Born To Sell and has been writing covered calls for a long time.

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