Roll Forward 1 Covered Call on O (Realty Income) - Potential income return 8.20% in 93 days

On April 7, 2021, we bought back 1 covered call on O stock and additionally sold a new covered call with expiry further out on May 21, 2021. For this trade, we got a $40 premium (before commissions).The aftermath of this trade $118 (after commissions)

This trade comes as the #28 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 5.37% from our $2,800 monthly goal.  While in total we have reached already 53.93% this month so far. Awesome.

As we have been buying O using dollar-cost averaging our average buy price is: $61.16

here is our trade setup:

  •     BOT    1    O    APR 16 '21 65 Call Option     0.68   
  •     SLD    1    O    MAY 21 '21 65 Call Option     1.53  

what can happen next:

O is trading below our strike price of $65 at the expiry date (May 21, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case O is trading above our strike price of $65, our 100 shares get called away at the strike price of $65 and we realize our max gain of $502 or 8.20% potential total income return in 93 days

Break-even: $59.98