Roll forward 2 Covered Calls on HUGE - Potential income return 72.47% in 37 days

On February 19, 2021, we roll forwarded 2 covered calls on HUGE stock with an expiry set on March 19, 2021. For this trade, we got a $30 premium (before commissions).

This trade was originally established back on February 10, 2021, with buying 200 shares with HUGE at $3.19, see: Sold 2 Covered Calls on HUGE - Potential income return 68.52% in 9 days

This trade comes as #42 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 0.84% from our $3,000 monthly goal.  .While in total we have reached already 99.18% so far. Awesome.

here is our trade setup:

  • SLD 2 HUGE MAR 19 '21 5 Call Option 0.15 USD

what can happen next:

HUGE is trading below our strike price of $5 at the expiry date (March 19, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case HUGE is trading above our strike price of $5, our 200 shares get called away at the strike price of $5 and we realize our max gain $462.4 or 72.47% potential total income return in 37 days

Break-even: $2.65

Selling covered calls with Huge stock
Selling covered calls with Huge stock
  • Running Total  4 Trades since February 10, 2021
  • Options income $138