Covered Call on TLRY - Potential income return 5.85% in 30 days

On August 28, 2020, we sold 1 covered call on TLRY stock expiring on September 4, 2020. For this trade, we got a $10 premium (before commissions).

This trade comes as the #59 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 1.01% from our $750 monthly goal, while in total we have already reached 125.17% from our monthly goal so far.

We sold this call, just shortly we got assigned 100 shares of TLRY, see:

here is our trade setup:

  • SLD 1 TLRY SEP 4 '20 7 Call Option 0.10 USD

what can happen next:

TLRY is trading below our strike price of $7 at the expiry date (September 4, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis. 

In case TLRY is trading above our strike price of $7, our 100 shares get called away at the strike price of $7 and (as we have already collected some premium from selling puts) we realize our max gain $41 or 5.85% potential income in 30 days

Break-even: $6.59

Selling covered calls with TLRY
Selling covered calls with TLRY

  • Running Total  9 Trades since July 23, 2020
  • Options income: $95