On June 5, 2020, our 100 shares of GPS were called away at the strike price of $9.5
We established this position on GPS stock on May 15, 2020, by buying 100 shares at $9 per share, a couple of days later we established a covered call position, and did one additional roll forward and roll up to exit this trade with 12.22% yield in 21 day
- Covered Call on GPS - Potential income return 3.77% in 11 days
- Roll Forward and Up GPS Jun 05 '20 9.5 Covered Call Option 0.39 USD (13% potential income in 18 days)
This is yet another good example of how covered calls help generate income. We closed this trade with a $0.61 premium plus realized a value gain of $0.5. Total $111 or 12.33% return from our $900 investment in just 21 day. Probably our joy would be bigger if we were selling 10 contracts at a time, but every bit counts.
- Running Total 12 Trades since May 1, 2020
- Trade P/L $168
We are looking to buy/write more covered calls with GPS in the future. Might open a new position in the next week.