Covered Calls

Covered Call on SPCE - Potential income return 7.2% in 7 days

SPCE
On June 5, 2020, we bought on margin 101 shares of SPCE stock (Virgin Galactic Holdings Inc.)  paying $15.96 per share and simultaneously sold June 12, 2020 expiry covered call at the strike price of $16.5 for what we got a premium of $0.61 This trade comes as third in the month of June, and if we stick with our trading plan for this month, premium generated from this trade makes us about 10.16% from our $600 monthly goal, while in total we have already reached 25.63% from our goal. Wow. …

Covered Call on WFC- Potential income return 2.51% in 3 days

WFC
On June 2, 2020, we bought on margin 101 shares of WFC stock (Wells Fargo & Co.)  paying $27.79 per share and simultaneously sold June 5, 2020 expiry covered call at the strike price of $28. Here at OptionsBrew.com, we like the idea of selling options on "good" dividend stocks, preferably from the Dow Jones list. WFC is both a good dividend stock, raising its dividend for the past 8 years, also stock is from the Dow Jones list With a dividend at $2.04, this buy gives as a 7.34% dividend…

Covered Call on BCRX - Potential income return 19.08% in 18 days

BCRX
On June 1, 2020, we bought on margin 110 shares of BCRX stock (BioCryst Pharmaceuticals, Inc.)  paying $4.61 per share and simultaneously sold June 19, 2020, covered call at the strike price of $5. This trade is the first one in the month of June, and if we stick with our trading plan for this month, premium generated from this trade makes us about 8% from our $600 monthly goal: Trading plan for June 2020 (Option trades & Stock Buys) BCRX is a small pharma doing a clinical study on…

Roll Forward and Up GPS Jun 05 '20 9.5 Covered Call Option 0.39 USD (13% potential income in 18 days)

GPS
On May 29, 2020, we rolled forward and up (diagonal calendar)  1 covered call on GPS stock  - a position originally established a couple of weeks ago at the strike price of $9 (assignment). Covered Call on GPS - Potential income return 3.77% in 11 days This is a good example of how a losing trade can turn into a profitable. We agreed to get assigned on GPS stock at the strike price $9, when the stock was actually trading under $8. Thanks to the covered calls we were able to break even our cost…

Roll Forward RDSA JUN 05 '20 15 Covered Call 0.08 EUR (Potential income 0.54% in 7 days)

AMS:RDSA
On May 29, 2020 we roll forwarded RDSA JUN 05 '20 15 Covered Call for 0.08 EUR credit. This trade was originally established as a put ratio back spread on May 11: Put Ratio Back Spread on RDSA - 0.7% potential income in 4 days We got assigned at EUR 14.80 and immediately sold a weekly covered call: Covered Call on RDSA - Potential income return 2% in 7 days as our strike price didn't get reached we roll forwarded this covered call for the next week's expiry: Roll Forward RDSA MAY 29 '20 15…

Roll Forward RDSA MAY 29 '20 15 Covered Call 0.19 EUR (Potential income 1.26% in 7 days)

AMS:RDSA
On May 22, 2020 we roll forwarded RDSA MAY 29 '20 15 Covered Call for 0.19 EUR credit. This trade was originally established as a put ratio back spread on May 11: Put Ratio Back Spread on RDSA - 0.7% potential income in 4 days We got assigned at EUR 14.80 and immediately sold a weekly covered call: Covered Call on RDSA - Potential income return 2% in 7 days Now, May 22, 2020 was a choppy trading season. RDSA didn't reach our strike price at EUR 15, our covered call options expired worthless…

Poor Man's Covered Call on AGN - Potential income return 4.23% in 8 days

AMS:AGN
This was meant to be a joke/test/learning trade, but here we go, we just opened second contract on this Dutch stock AGN selling yet another poor man's covered call.  Aegon N.V. is multinational life insurance, pensions and asset management company with revenue almost 70 BLN EUR in 2019,  headquartered in The Hague, Netherlands Roll Forward AGN MAY 29 '20 2.3 Poor Man's Covered Call Option 0.04 EUR (Potential income 3.35% in 8 days) here is our trade setup: BOT 1 AGN DEC 20 '24 2 Call Option…

Roll Forward AGN MAY 29 '20 2.3 Poor Man's Covered Call Option 0.04 EUR (Potential income 3.35% in 8 days)

AMS:AGN
This is more a joke trade, but for the learning process at the end of April 2020 we established the so-called Poor Man's covered call with less than EUR 100 on Amsterdam stock exchange-listed stock - AGN or Aegon. We like trading Amsterdam stocks time after time. Poor Man's Covered Call with Less than EUR 100 Aegon N.V. is multinational life insurance, pensions and asset management company with revenue almost 70 BLN EUR in 2019,  headquartered in The Hague, Netherlands For this roll forward…

Covered Call on HTZ - Potential income return 32.49% in 11 days

HTZ
On May 18, 2020, we bought on margin 110 shares of HTZ stock (Hertz Global Holdings Inc) at New York's stock exchange, paying $3.17 per share HTZ seems is facing bankruptcy threats, and I must admit this is one of the most speculative trades I've done lately - there is a huge chance of the company going bankrupt - will it happen in the next 11 days? Not so sure. Could share price drop from $3.17 down to $2 or $1 in the next 11 days? You bet. Hertz Could File for Bankruptcy This is not a…

Covered Call on GPS - Potential income return 3.77% in 11 days

GPS
On May 18, 2020, I sold 1 covered call on GPS stock  - a position established last Friday at the price of $9 per share (assignment). We have been selling covered calls with great success on GPS during the month of May, and now we have in total 2 covered calls with two different strikes and expiry dates. In this article, I will focus on the latest trade, though calculations for both trades are used at the end of artic.e Here is the trade setup: BOT 100 GPS Stock 9 USD SLD 1 GPS MAY 29 '20 9…

Covered Call on NRZ - Potential income return 8.3% in 35 days

NRZ
On May 15, 2020, I sold a covered call on NRZ stock  - a position established earlier in the year for $5.75 per share. I have been already selling covered calls on NRZ  but was not keeping notes properly. (See screenshot below) Here is the trade setup: SLD 1 NRZ JUN 19 '20 6 Call Option  0.5 USD   I got an immediate return $50 dollars from this contract, here is what can happen next: On Expiry date (June 19, 2020) NRZ is trading above our strike price of $6, our 100 shares get called away,…

Covered Call on RDSA - Potential income return 2% in 7 days

AMS:RDSA
On May 15, 2020 I got assigned 100 shares of RDSA from Amsterdam stock exchange at EUR 14.8 per share. This is not a trade I would call something I'm excited about, I just didn't want to close the ratio back spread I opened a few days ago with a loss, because of the uncertainty in the oil market. I decided I will better take an assignment and start selling covered calls to break even and hopefully make some small income from this trade. Put Ratio Back Spread on RDSA - 0.7% potential income in…

Roll Forward INGA MAY 22 '20 5 Covered Call Option 0.14 EUR

AMS:INGA
We established a covered call position on this Amsterdam stock exchange INGA stock earlier this week, looking for a quick 4% potential income in 4 days. Our shares didn't get called away as the stock didn't cross our strike price of EUR 5 we were able to Roll forward this contract to the next week's expiry collecting more premium / lowering our cost basis. Covered Call on INGA - Potential income return 4.09% in 4 days For this roll forward to the next week's expiry, we got additional credit…

Roll Forward GPS MAY 22 '20 8 Covered Call Option 0.27 USD

GPS
For the second week in a row, we keep rolling forward covered call on GPS stock, a position I established earlier at the start of the month.  For this roll forward to the next week's expiry, we got additional credit of $0.27. We call it a wheel strategy.  Here is the trade setup: SLD 1 GPS MAY 22 '20 8 Call Option  0.27 USD   This position was originally established just 14 days ago by buying 100 shares of GPS at $7.59 SLD 1 GPS MAY 08 '20 8 Call Option 0.22 USD With today's roll forward…

Covered Call on INGA - Potential income return 4.09% in 4 days

AMS:INGA
On May 11, 2020, I bought on margin 110 shares of INGA stock (ING Group) at Amsterdam stock exchange, paying EUR 4.88 per share INGA is a Dutch dividend stock, paying dividends bi-annually, the current dividend yield is a bit above 14%. When writing covered calls, we prefer to write them on good dividend stocks. It's hard to tell - is ING a good short term buy, but overall that's one of the largest banking corporations in the World.   With total assets of US$1.1 trillion, it is one of the…