Futu Holdings stock has seen a 45.70% increase in the last three months with an implied volatility of 54.19%. Covered call strategies can generate income from high volatility stocks like FUTU.

One covered call example involves buying 100 shares of FUTU at $17,800 and selling the October 17, 180-strike call option for $9.70, generating $970 in premium per contract.

Selling the call option yields a 5.8% income in 27 days, with a potential 77.9% annualized return if the stock stays at the same level or 94.1% if it rises above the strike price of 180.

Instead of the October 17 call, consider selling the March 180-strike call option for $26.85, yielding a 17.8% income in 181 days or a 35.8% annualized return if the stock rises above 180.

The Barchart Technical Opinion rates FUTU at 88% Buy with a strengthening short-term outlook. Long-term indicators support the current trend, and the relative strength crossing above 50% suggests a bullish trend is likely.

Futu Holdings Limited is a technology company providing digitized brokerage and margin financing services through its digital platform, Futu NiuNiu, available on mobile devices. Analysts mostly rate the stock as a Strong Buy.

Covered calls offer an opportunity to earn extra income from core portfolio holdings, but remember options are risky. Always conduct due diligence and consult a financial advisor before investing. This information is for educational purposes only.

Read more at Yahoo Finance: 2 Covered Call Ideas on FUTU Stock