Covered Call on AMS:AGN - Potential income return 11.11% in 154 days (26.33% annualized)

On September 28, 2020, we sold 3 covered calls AMS:AGN stock expiring on November 20, 2020. For this trade, we got some small but decent EUR 15 premium (before commissions)

We opened this trade on June 19, 2020, with writing a put option and AGN. As we get assigned we started to sell covered calls. Today is already the second time we are rolling forwards this trade

Aegon N.V. is Dutch multinational life insurance, pensions, and asset management company headquartered in The Hague, Netherlands. As of December 31, 2017, Aegon companies employed approximately 28,318 people worldwide, serving millions of customers. In 2020, the company had 26,000 employees

This trade comes as the #39 in the month of September, and according to our trading plan for this month, the premium generated makes us about 1.57% from our $800 monthly goal, while in total we have already reached 85.11% this month

here is our trade setup:

  • SLD 3 AMS:AGN NOV 20 '20 2.4 Call Option 0.05 EUR

what can happen next:

If AMS:AGN is trading below our strike price of EUR 2.4 at the expiry date (November 20, 2020) we keep the premium and sell more covered calls to lower our cost basis.

In case AMS:AGN is trading above our strike price of EUR 2.4, our shares get called away at the strike price of EUR 2.4 and we realize our max gain of EUR 8 (we made an additional premium when sold put options), or 11.11% potential income in 154 days.

Our break-even price: EUR 2.13

  • Running Total 5 Trades since April 16, 2020

  • Options income: EUR 150