Roll forward 4 Covered Calls on SNDL - Potential income return 45.3% in 17 days

On February 19, 2021, we roll forwarded 4 covered calls on SNDL stock expiring on February 26, 2021. For this trade, we got a $40 premium (before commissions).

This trade comes as #39 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 1.0% from our $3,000 monthly goal.  .While in total we have reached already 86.77% so far. Awesome.

We have been in this trade since February 9, 2021, when we bought 400 shares with SNDL at $1.535, see: Sold 4 Covered Call on SNDL - Potential income return 39.96% in 10 days

here is our trade setup:

  • SLD 4 SNDL FEB 26 '21 2 Call Option 0.1 USD

what can happen next:

SNDL is trading below our strike price of $2 at the expiry date (February 26, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SNDL is trading above our strike price of $2, our 400 shares get called away at the strike price of $2 and we realize our max gain $278.2 or 45.3% potential income return in 17 days

Break-even: $1.32

Selling covered calls with SDNL stock
Selling covered calls with SDNL stock
  • Running Total  5 Trades since February 9, 2021
  • Options income $315