The beauty of trading options on high-priced stocks is that you can generate a big premium payout. The other great thing is that, if you choose a solid company, you can choose options set to expire many months out. The longer your contract period, the higher your premiums will be.
I’ve used this technique to great success over the past few years. The opportunities aren’t always there, but when they are, it’s a good idea to grab them.
Here’s a look at three companies I’m tracking for options plays because of their high-priced stocks. In this case, I have options for both covered calls and naked puts — how you choose to act should depend on what you already own/are willing to buy, and how much risk you’re willing to take on.