Not Rolling AAPL Calls

Managing a Covered Call in Apple and a Look at Its U.S. Manufacturing

I’ve held Apple stock for a long time and currently have a covered call in place — the August 15th 217.5 strike. Apple just popped about 5% today, closing at 213.28, and I’ve got 9 days to go. So, how am I managing it?

Simple: I’m not rolling it up, even if it goes in the money. I’ll either let the shares get called away or roll it back to the same strike. Why? Because I’m not convinced this move is sustainable.

Apple’s jump came after they announced a $600B investment in U.S. manufacturing. Sounds big, right? But they’ve made similar announcements before — $400B under Biden — and we haven’t really seen that capital put to work onshore.

Now, with Trump adding a 25% tariff on imports from India (due to sanctions on Russian oil), Apple’s reliance on Indian manufacturing gets trickier. They left China to avoid previous tariffs, and now India has its own issues. But if Apple brings production back to the U.S., input costs rise — and that could impact sales.

So, it’s a tricky spot: Tariffs raise costs overseas, domestic production raises costs here. Either way, that’s pressure.

As much as I’m still long Apple and not planning to sell anytime soon, I don’t see this recent move as something to chase.

#OptionsStrategy #AppleStock #CoveredCalls #MarketPerspective

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