Closed WFC Covered Call with +$70 Profit (2.51% yield in 3 days)

On June 5, 2020, our 100 shares of WFC  were called away at the strike price of $28

We established this position on WFC stock on June 2, 2020, by buying 100 shares at $27.79 per share and simultaneously sold June 5, 2020 expiry covered call at the strike price of $28.

This is yet another good example of how covered calls help generate income. We closed this trade with a $0.49 premium plus realized a value gain of  $0.21 Total $70 or 2.51% return from our $2,779 investment in just 3 day.  Probably our joy would be bigger if we were selling 10 contracts at a time, but that would also mean we had to put 10 times the capital at risk.

Selling Covered Calls with WFC
Selling Covered Calls with WFC
  • Running Total  3 Trades since June 2, 2020
  • Trade P/L $49

We are looking to buy/write more covered calls with GPS in the future. Might open a new position in the next week.