Roll Forward AMC Entertainment Holdings (NYSE:AMC) OCT 16 '20 5 Covered Call 0.13 USD (Potential income 7.88% in 49 days / 58.69% annualized)

On October 2, 2020, we roll forwarded 1 covered call on NYSE:AMC stock - a position originally established on September 25 2020, with buying 100 shares of AMC paying $5 per share and simultaneously selling $5 strike price covered call.

This trade comes as the #4 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 1.76% from our $600 monthly goal, while in total we have already reached 8.27% so far.

AMC Entertainment Holdings, Inc. is an American movie theater chain headquartered in Leawood, Kansas, and the largest movie theater chain in the world. Founded in 1920, AMC has the largest share of the U.S. theater market ahead of Regal and Cinemark Theatres.

here is our trade setup:

  • SLD 1 AMC OCT 16 '20 5 Call Option 0.13 USD

what can happen next:

If AMC is trading below our strike price of $5 at the expiry date (October 16, 2020) we keep the premium and sell more covered calls to lower our cost basis.

In case AMC is trading above our strike price of $5, our shares get called away at the strike price of $5 and we realize our max gain $39.2 (we made an additional premium when sold put options), or 7.88% potential income in 49 days.

Our break-even price: $4.61

Selling covered calls with AMC stock
Selling covered calls with AMC stock
  • Running Total 16 Trades since August 3, 2020

  • Options income: $222