Michael Shulman, Expert Trader, Analyst and Educator

Michael Shulman, Expert Trader, Analyst and Educator

This week’s freebie involves an incredibly simple strategy that I’ve dubbed the Next Call. You’ll be glad you learned it.

Here it is (drumroll, please)…

Buy shares and sell the call at the next strike price. Once in a while, you sell a strike two strikes out. What do I mean by this? If a stock is $119.50, you sell the $120. Or once in a while, the $121.

This week, consider selling the Facebook (FB) $120 call. Or, depending when you read this, the next strike up.

Facebook’s recent earnings report made Wall Street very happy. While pricey in terms of valuation, the company and stock are in great shape.

If this works for you, consider the Next Call tactic as part of an overall income generation strategy.

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