Roll Forward 8 Covered Calls on SNDL - Potential income return 25.17% in 78 days

On March 19, 2021, we rolled forward 8 covered calls on SNDL stock expiring on April 30, 2021. For this trade, we got a $120 premium (before commissions).

This trade comes as #130 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 5.04% from our $2,000 monthly goal. While in total we have reached already 256.49% so far. Awesome.

We originally entered this trade as a put ratio back spread, see: Sold Put Bull Ratio Back Spreads on SNDL – 11.12 % potential income return in 8 days

here is our trade setup:

  • SLD 8 SNDL APR 30 '21 2.5 Call Option 0.15 USD

what can happen next:

SNDL is trading below our strike price of $2.5 at the expiry date (April 30, 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 $2.5, our 800 shares get called away at the strike price of $2.5 and we realize our max gain $503.4 or 25.17% potential income return in 78 days

Break-even: $1.88

Selling covered calls with SNDL stock
Selling covered calls with SNDL stock
  • Running Total  14 Trades since February 9, 2021
  • Options income $599