3 Options Trades You'll Get Paid to Make

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Sell AXP Sept 35 Calls (ABZIG)

With volatility so high, you can buy the shares of American Express (AXP) at $33 and then simultaneously sell the AXP Sept 35 Calls (ABZIG) for $1.25 per contract.

If the stock is trading above $35 by the closing bell on the third Friday of September, those shares will most certainly be called away for a $2 gain. Add the $1.25 in call premium collected and you pocket $3.25 per share. Divide that $3.25 gain by the cost basis of $33 and you get a 45-day return of 9.84%.

If you can roll your capital on a consistent basis every six weeks, you can understand why asset managers love this strategy. Plus, the $1.25 call premium brought in acts as a 5% downside hedge against any pullbacks or potential losses if the stock rolls over. It's a time tested tool for taking some money off the table without having to sell the stock.

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