Covered Call on ET - Potential income return 3.16% in 21 days

On August 7, 2020, we sold 1 covered call on ET stock expiring on August 28, 2020. For this trade, we got a $23 premium (before commissions).

We sold this covered call, just shortly we got assigned 100 shares of ET at the strike price $6.5, see Credit Spread on ET – 5.10% potential return in 23 days

This trade come as the #16 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us about 2.74% from our $750 monthly goal, while in total we have already reached 30.96% from our monthly goal so far.

here is our trade setup:

  • BOT 100 ET Stock 6.5 USD
  • SLD 1 ET AUG 28 '20 6,5 Call Option 0.23 USD

what can happen next:

ET is trading below our strike price of $6.5 at the expiry date (August 28, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis. 

In case ET is trading above our strike price of $6.5, our 100 shares get called away at the strike price of $6.5 and we realize our max gain $20.6 or 3.16% potential income in 21 day

Break-even: $6.3

Selling covered calls with ET stock
Selling covered calls with ET stock
  • Running Total  17 Trades since April 6, 2020
  • Options Income: $297