3 Large-Cap Tech Stocks You Can Play for Income

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If you’re looking for leadership in the land of equities, take a gander at tech stocks.

QQQ dividends
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Source: OptionsAnalytix

The technology-centric Nasdaq Composite has bested the performance of both the S&P 500 and Russell 2000 indices in recent months, revealing strong demand for a handful of large-cap tech stocks.

From a technical perspective, the posture of the Nasdaq-100-tracking PowerShares QQQ Trust (QQQ) is far more constructive than its peers. As the accompanying price chart will attest, a new uptrend has taken root, with the price of QQQ perched above all the major moving averages.

Continued strength out of tech stocks should provide a number of income generating opportunities for the option traders among us.

Here are three large-cap tech stocks offering attractive setups.

3 Large-Cap Tech Stocks for Income: Google (GOOG, GOOGL)

Google tech stocks
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Source: OptionsAnalytix

Since soaring a hundred bucks on its recent earnings announcement, Google (GOOG, GOOGL) stock has seen a mild pullback, offering a low-risk entry point.

What’s particularly intriguing about the king of search these days is the monster breakout created by its earnings gap. The strong base in GOOGL stock between $500 and $600 should act as pivotal support going forward, halting any retracements before they do too much damage to its longer-term uptrend.

The recent stabilization in the stock suggests the post-earnings profit taking is over and the next up-leg in GOOGL may be beginning.

Sell the Sep $620/$615 put spread for 60 cents to score a 14% return on your money over the coming month.

3 Large-Cap Tech Stocks for Income: Amazon (AMZN)

Amazon AMZN tech stocks
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Source: OptionsAnalytix

Amazon (AMZN) joins GOOGL among the ranks of tech stocks with blowout earnings this quarter. While its earnings gap was sold into with vigor, AMZN stock has since stabilized into a narrow trading range, offering a clean entry point.

The long-term trend of AMZN stock remains the envy of large-cap stocks. Massive accumulation has materialized following the past three quarterly earnings, fueling its meteoric rise of late.

There isn’t anything not to like about the online retailing giant, and I suspect a breakout of its recent range — watch for a break of $545 — will usher in its next advance.

Sell the Sep $490/$485 put spread for 62 cents to score a 14% return on your money over the coming month.

3 Large-Cap Tech Stocks for Income: Facebook (FB)

3 Large-Cap Tech Stocks for Income: Facebook (FB)
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Source: OptionsAnalytix

Facebook (FB) rounds out our trio of large-cap tech stocks with an equally compelling setup. While the social media kingpin didn’t score an epic earnings gap this quarter, its price action has been just as juicy.

Momentum in FB stock kicked it up a notch this summer. Every dip has been bought, every breakout chased with aggression. Over the past two weeks, FB has provided yet another low risk entry by pulling back to its rising 20-day moving average. At $96, the stock sits a stone’s throw away from the pivotal century mark which should act as a magnet.

Sell the Sep $90/$85 put spread for 74 cents to score a 17% return on your money over the coming month.

As of this writing, Tyler Craig did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/08/3-large-cap-tech-stocks-income/.

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