Investors can generate portfolio income and benefit from price appreciation in their stock holdings with an options strategy — provided they do it right.
In addition, if the strike price is sufficiently higher than the current price, the initial investor can benefit from the appreciation in the meantime.
For instance, if the underlying stock falls short of the strike price, the premium can provide some cushion on the downside.
Bank of America highlighted a call option with a strike price of $220 against Constellation Energy .
Freshpet also made the grade, with Bank of America highlighting a call option with a $140 strike price.
Persons:
Arjun Goyal, you'll, Russell, Freshpet, TD Cowen
Organizations:
Bank of America, Constellation Energy, Microsoft, Constellation, Bank of, Republican
Locations:
Virginia, Washington