Covered Call on BioCryst Pharmaceuticals (NASDAQ: BCRX) - Potential income return 16.5% in 63 days (95.59% annualized)

On October 16, 2020, we got assigned 400 shares with BCRX stock and sold 4 covered calls on this stock expiring on November 20, 2020. For this trade, we got a $142.40 premium (after commissions)

This trade comes as the #19 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 23.73% from our $600 monthly goal, while in total we have already reached 62.45% so far.

BioCryst Pharmaceuticals, Inc. is an American pharmaceutical company headquartered in Durham, North Carolina. The company is a late-stage biotech company that focuses on oral drugs for rare and serious diseases. 

here is our trade setup:

  • SLD 4 BCRX NOV 20 '20 4 Call Options 0.38 USD

what can happen next:

If BCRX is trading below our strike price of $4 at the expiry date (November 20, 2020) we keep the premium and sell more covered calls to lower our cost basis.

In case BCRX is trading above our strike price of $4, our shares get called away at the strike price of $4 and we realize our max gain $264 (we made additional premium as we sold put options), or 16.5% potential income in 63 days.

Our break-even price: $3.34

Selling Covered Calls with BCRX
Selling Covered Calls with BCRX
  • Running Total 21 Trades since April 30, 2020

  • Options income: $779