Covered Call on ING Groep (AMS:INGA) - Potential income return 7.21% in 74 days (35.56% annualized)

On October 16, 2020, we got assigned 100 shares with AMS:INGA stock and we sold 1 covered call on this stock expiring on November 20, 2020. For this trade, we got a EUR 13 premium (before commissions)

This trade comes as the #18 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 2.03% from our $600 monthly goal, while in total we have already reached 38.72% so far.

here is our trade setup:

  • SLD 1 INGA NOV 20 '20 6.8 Call Option 0.13 EUR

what can happen next:

If INGA is trading below our strike price of EUR 6.8 at the expiry date (November 20, 2020) we keep the premium and sell more covered calls to lower our cost basis.

In case INGA is trading above our strike price of EUR 6.8, our shares get called away at the strike price of EUR 6.8 and we realize our max gain EUR47.63 (we made additional premium as we sold put options), or 7.21% potential income in 74 days.

Our break-even price: EUR 6.32

Selling covered calls with INGA stock
Selling covered calls with INGA stock
  • Running Total  20 Trades since May 11, 2020

  • Options Income: EUR 142