On June 5, 2020, our 100 shares of RDSA were called away at the strike price of EUR 15
We established a position with RDSA stock back on May 15, 2020, buying 100 shares at EUR 14.80 per share, and did 2 additional weekly roll forwards to exit this trade with a 3.85% yield in 21 day.
- Covered Call on RDSA - Potential income return 2% in 7 days
- Roll Forward RDSA MAY 29 '20 15 Covered Call 0.19 EUR (Potential income 1.26% in 7 days)
- Roll Forward RDSA JUN 05 '20 15 Covered Call 0.08 EUR (Potential income 0.54% in 7 days)
This is yet another good example of how covered calls help generate income. We closed this trade with a 0.37 EUR premium plus realized a value gain of 0.2 EUR. Total EUR 57 or 3.85% return from our EUR 1,480 investment in 21 day. Despite, we have seen better outcome we are still quite happy with the profit. Probably our joy would be bigger if we were selling 10 contracts at a time, but every bit counts.
- Running Total 9 Trades since May 11, 2020
- Trade P/L EUR 135
We still hold 2 put options on RDSA stock with expiry June 19. We really hope we won't get assigned, but if will - the we will take the assignment and will sell covered calls.
Without these 2 put options, we currently are not looking to sell covered calls with RDSA, but anything can change,