Mayer also comes from Google, so she understands from the inside why Google is able to extract mountains of cash from advertising that it produces quarter after quarter. Does that mean I think Google is in trouble and investors should be worried? No, not at all. But it does mean I think most of the low-hanging fruit have already been picked. Google will have to fight harder for each incremental percentage change in revenue and profit than the previous one.
Taking profits off the table doesn't necessarily mean having to sell your shares. An investor can sell call options against some of the holdings to hedge some risk while generating income.
For example, an investor with a cost basis of $500 may not want to sell because of tax considerations. An alternative is to sell the December $1020 strike call option for about $14.25. Based on a highly fluid price of $980, this allows for another $54.25 in gains per share while reducing risk by over 1%.
For investors wondering how to position a $1,000 stock, a conservative strategy may make a lot of sense.At the time of publication the author was short BlackBerry covered calls. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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