Apple Inc.’s (NASDAQ: AAPL) upcoming earnings announcement on January 18 offers option trading investors an opportunity to profit from selling front-month calls in this best stock pick. For those holding Apple stock this could be a good time to sell some calls against long stock positions. This covered call strategy takes advantage of an upward stock move while adding income to your portfolio.

Apple’s stock is currently trading near its 52-week high of $335, with an industry leading PE of 22. Despite the company’s spectacular news of late, the stock might take a breather should the company fail to meet any of its investors’ lofty goals.

For example, consider selling the AAPL Jan 350 Call (expiring Jan. 22) that has been trading around $3. Sell one call for every 100 shares held and collect the premium, while still profiting from the stock if it moves up to $350. If the stock is trading above that on expiration day your stock will be called away and you will not benefit from any higher moves. However, by garnering the $3 premium, you will effectively sell the shares at $353.

This covered call trade is for those investors that believe Apple stock won’t trade at $350 or higher before Jan. 22. Of course, if Apple’s fiscal first quarter earnings report on January 18 is strong, Apple stock could well trade above that price.

Selling covered calls may be the safest way for an options trader to gain experience.