5 Ways To Earn Money From AAPL
Apple offers several easy ways for you to make extra money.
Buy AAPL stock
Get AAPL stock dividend
Sell covered calls
Sell secured puts
Put money in Apple Card savings account from Goldman Sachs
The Apple Card savings account from Goldman Sachs returns over 4% annually.
Seems too good to be true . . .
Except that Apple and Goldman Sachs are technology and financial leaders.
If you want even greater upside than 4%, consider buying shares, collecting dividends, and selling covered calls.
*** Do your own research before buying or selling stocks, options, or any securities. I do not give investment advice. My information or ideas might be wrong or wrong for you. I do not know or want to know your financial situation or investment goals. I am not a financial professional and do not manage other people’s money. ***
By owning shares, you get three possible ways to make money.
Own shares for stock price increases
Own shares for stock dividends
Sell covered calls for income
Based on the last 5 years, owning shares alone would net you 20% per year, plus any dividends and options income could bring you over 30% per year.
To sell covered calls, you need roughly $16,300 to buy 100 shares of AAPL at today’s price or else already own 100 shares of AAPL.
If you do not want to own shares in APPL, you can sell secured puts or put money in an Apple Card savings account from Goldman Sachs.
Buy AAPL Stock
Perhaps the best way to make money with AAPL is to buy shares.
AAPL stock tripled in the last 5 years.
In April 2018, AAPL traded around $40.50 per share. In April 2023, AAPL trades around $163 per share.
(163 - 40.50) / 40.50 = 3
A 3x increase means the stock increased 200%. Divided by 5 years, that is about 40% increase per year over the 2018 price.
If you bought 100 shares of AAPL in April 2018, your $4,050 would have grown to $12,150, not including dividends. That is roughly $8,000 profit.
If you buy 100 shares of AAPL in 2023, how will your $16,300 grow in the next 5 years?
1.5x increase results in $8,150 profit
2x increase results in $16,300 profit
3x increase results in $32,600 profit
Beware that instead of increasing over the next 5 years, AAPL stock could decrease.
But look at the AAPL stock price chart. What does it suggest the stock will do?
Here is a view of the AAPL stock chart for the last 5 years.
Here is a view of the AAPL stock chart for all years.
AAPL has a great track record as a stock and as a company and very likely will continue its upward trend.
AAPL Dividend
AAPL pays a roughly 0.55% annual dividend. If you own shares at the dividend date, you get paid cash based on a percentage of the stock you own.
A 0.55% annual dividend for $16,300 shares of AAPL is roughly $90 per year.
Each dividend payment by itself is small. However, over time the dividends add up to become significant.
Also, owning more shares makes it more significant. If you own $163,000 shares of AAPL, your annual dividend is roughly $900 per year. Same percentage but the volume is more exciting.
Therefore, making money from AAPL dividends is best if you own AAPL for a long time and accumulate more shares.
Sell Covered Calls
Selling covered calls for AAPL can earn you additional income. The amount depends upon the option contract.
For instance, you could sell covered calls that generate over 1-2.5% in 3 to 4 months. Annualized that is 3% to 10%.
With other strategies, maybe even earn more than 10% per year.
Use my options calculator to develop your own covered call strategies for AAPL.
Two big caveats are the following.
Selling covered calls is like dividends in the sense that selling one option contract is probably not significant, but selling lots over time results in significant returns
When selling covered calls, you risk selling the AAPL shares if the option expires in the money
Therefore, try to find covered calls to sell that can be repeated over time, be careful about how you price and date your option contract.
In case you have to sell the stock, have a strategy ready for the cash for after the contract expires.
Despite risk of selling shares, it is possible to come up with covered call strategies that have good outcomes whether or not the stock is sold.
I like to err on the side of caution by selling covered calls that are unlikely to expire in the money.
If the contract expires in the money, it should be at a significantly higher price than today’s price so that I get a value from the stock upside that lets me deploy a future strategy that I like.
At the same time, I want to make at least decent income from selling the option.
Therefore, it is important for me to strike a balance between keeping the shares but also making income — with the edge toward keeping the shares and a backup plan in hand.
The triple combination . . .
If you own 100 shares of AAPL, you have at least three ways to earn money.
Stock price increases
Dividend payments
Covered call income
Just buying AAPL stock alone opens up two ways — stock price increases and dividend payments. Those are the least risky and require the least amount of work.
Selling covered calls involves more work, expertise, and risk than stock ownership. But the risks can be minimized and the gains can be very significant over time.
Earn money without owning AAPL shares . . .
Earn money without owning AAPL shares by selling secured puts or putting your money in an Apple Card savings account by Goldman Sachs.
Sell Secured Put
Selling secured puts for AAPL can create income for you. The income amount depends upon the option contract.
For instance, you could sell a secured put that expires in 3 to 4 months and earns you 2-4% on your cash security. Annualized that is 6% to 16%.
Use my options calculator to develop your own secured put strategies for AAPL.
To secure the put, you need the cash equivalent of 100 shares at the strike price.
For instance, if you sell a put for AAPL with a $150 strike price, you need $15,000 in cash set aside during the contract period in case you end up having to buy shares.
You do not actually own the shares underlying the put option contract that you sell unless and until the option expires in the money.
Two risks with selling secured puts:
If the option expires out of the money so that shares are not put on you and then the stock price increases significantly long-term, you miss out on stock price increases if instead you had just bought the stock; now you need more security to sell secured puts on AAPL
If the option expires in the money so that shares are put on you and then the stock price decreases significantly, your $15,000 cash is now much less valuable; covered calls you sell will generate less income than at higher stock prices
It is important therefore to sell secured puts for shares that you are comfortable buying or not buying.
Comfortable buying at the strike price in view of the stock’s long-term potential
Comfortable not buying because you do not think the stock will increase long-term or you already have a plan for long-term share ownership
Pick stocks that you know and love for the long-term and maybe it is a stock you own lots of shares of already.
Put Money In Apple Card Savings Account From Goldman Sachs
Putting money in an Apple savings account earns you over 4% per year.
Apple Card users can automatically deposit Daily Cash rewards into a high-yield savings account from Goldman Sachs that has a 4.15% annual yield.
In addition to Daily Cash rewards, Apple Card users can deposit funds into their high-yield savings account from other bank accounts.
The 4.15% APY is 10 times the national average. It is 3-4 times higher than the savings accounts I know of at major banks.
By keeping the 4% interest in the savings account, your returns compound year after year.
This means that each year the 4% interest is based on a bigger cash base. The previous year’s balance plus the interest from previous years.
Unlike options, you do not need 100-shares-worth of cash for this income. You can put any amount in the Apple Card savings account.
You also do not have the risks of stocks and options with the Apple Card savings account.
What is the catch? I am not sure there is a catch.
Apple and Goldman Sachs are the biggest and baddest technology and financial firms out there.
It is hard to see why everyone would not put money in an Apple Card savings account from Goldman Sachs.
The End
Thanks for reading and good luck making money.