Roll Forward 2 Covered Calls on Corbus Pharmaceuticals (NASDAQ:CRBP) - Potential income return 20.24% in 127 days (58.08% annualized)

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

Break-even: $1.91

Selling Covered calls with CRBP stock
Selling Covered calls with CRBP stock
  • Running Total 11 Trades since August 27, 2020

  • Options income: $513