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
- Running Total 17 Trades since April 6, 2020
- Options Income: $297