Closed INGA Covered Call with +31 EUR Profit (6.35% yield in 11 days)

On May 22, 2020, our 100 shares of INGA (Dutch stock) were called away at the strike price of EUR 5

We established a position with INGA on May 11, 2020, buying 100 shares at EUR 4.88 per share and simultaneously selling 1 covered call contract with 4 days expiry on May 15, 2020, which we rolled into the next (this week).

This is yet another good example of how covered calls help generate income. We closed this trade with a 0.19 EUR premium plus realized a value gain of  0.12 EUR. Total EUR 31 or 6.35% return from our EUR 488 investment in 11 days. Quite a good outcome. Preferably our joy would be bigger if we were selling 10 contracts at a time, but every bit counts. 

Closed covered call with INGA

  • Running Total  4 Trades since May 11, 2020
  • Trade P/L EUR 31, with capital at risk EUR 488
  • 6.35%return in 11 days

Next, we plan to write a naked put on INGA to collect more premius and if assigned - sell covered calls. It's called a wheel strategy. To make it more interesting and leave a room for larger profit we might sell 2 contracts instead of just 1.