Roll Forward 1 Covered Call on LI – 14.24% potential income return in 45 days

On February 19, 2021, we roll forwarded 1 covered call on NASDAQ:LI  stock expiring on March 05, 2021. For this trade, we got a $50 premium (before commissions)

This trade comes as #43 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 1.58% from our $3,000 monthly goal.  .While in total we have reached already 100.07% so far. Awesome.

We have been in this trade since January 22, when we bought 100 shares with LI at $34.50, see: Sold Covered Call on LI – 8.45% potential income return in 10 days

Li Auto Inc., also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou.

here is our trade setup:

  • SLD 1 LI MAR 05 '21 36.5 Call Option 0.32 USD

what can happen next:

LI is trading below our strike price of $36.5 at the expiry date (March 05, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case LI is trading above our strike price of $36.5, our 100 shares get called away at the strike price of $36.5, and (as we have already collected some premium from selling puts in the past) we realize our max gain $491.6 or 14.24% potential return of income in 45 days

Break-even: $31.64

Selling covered calls with LI auto stock
Selling covered calls with LI auto stock
  • Running Total  17 Trades since January 19, 2021
  • Options income $630