Facebook Covered Call

I recommend buying Facebook Inc. at $167.33 and selling Facebook September 170 calls at $15.65 (all prices in U.S. dollars). The eight-month return on this strategy if exercised would be 12.08%, and if share price is unchanged, return would be 10.32%. Eight-month downside breakeven is $151.68. Note that these are prices at the time of writing, and will fluctuate. Prices near these values will yield similar results. - Richard Croft