On October 19, 2020, we roll forwarded 2 covered calls on CRBP stock with expiry on January 15, 2020. For this trade, we got a small $11.2 premium (after commissions).
This trade was originally established on September 10, buying 200 shares with CRBP at $2.49 per share, see: Covered Call on CRBP - Potential income return 9.04% in 8 days. Since then we have rolled this trade once: Roll Forward 2 Covered Calls on CRBP - Potential income return 18.15% in 35 days (189.12% annualized)
This trade comes as the #20 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 1.86% from our $600 monthly goal, while in total we have already reached 64.32% so far.
Corbus Pharmaceuticals Holdings, Inc. is a Phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat inflammatory and fibrotic diseases by leveraging its pipeline of rationally designed, endocannabinoid system-targeting drug candidate.
Here is our trade setup:
SLD 2 CRBP JAN 15 '21 2.5 Call Option 0.08 USD
what can happen next:
CRBP is trading below our strike price of $2.5 at the expiry date (January 15, 2021), in such a case, we keep the premium and sell more covered calls to lower our cost basis.
In case CRBP is trading above our strike price of $2.5, our 200 shares get called away at the strike price of $2.5 and we realize our max gain $101.24+ or 20.24% potential income in 127 days
If our shares will get called away, from the returning money we will buy shares of KO
Running Total 11 Trades since August 27, 2020
Options income: $513