Established New Covered Call on NYSE:GOLD

On February 08, 2022, I bought 100 shares NYSE: GOLD stock paying $19.69 per share and simultaneously sold 1 covered call on them with a strike price of $20 and expiry this Friday. Credit received $13 (before commissions)

NYSE:GOLD - Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada.

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.

I have been trading calls and put options with great success on NYSE: GOLD stock for about a year. Today, when looking at 50 and 200-day Moving Averages in my charts I noticed NYSE:GOLD is a buy and decided to make this little trade setup for extra few dollars.

here is the trade setup:

• BOT 100 GOLD Stock 19.69 USD

• SLD 1 GOLD FEB 11 '22 20 Call Option 0.13 USD

I bought 100 shares at $19.69 apiece, in total paying $1,969 and sold 1 covered call with this Friday’s expiry, for what I received a premium of $13 (before commissions)

What happens next?

On the expiry date, February 11, 2022, NYSE: GOLD is trading under $20 per share -  options expire worthlessly and I keep premium - if GOLD trades above $20 on the expiry date, my 100 shares will get called away and I realize my max profit $41 ($10+$31) or potential 2.08% income yield in 3 days.

Break-even price: $19.69-0.1= $19.59

I seriously doubt the stock will actually get called away this week, but anything can happen, and if so I will be happy, if not I will keep selling weekly / bi-weekly call options while collecting the small but valuable dividend.

Trade safe!