Roll Forward and up 1 Covered Call on INTC - Potential income return 29.17% in 45 days

On April 9, 2021, we rolled forward and up 1 almost covered call on INTC stock expiring on April 23, 2021. For this trade, we got a $52 premium (before commissions).

This trade comes as the #48 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 1.87% from our $2,800 monthly goal.  While in total we have reached already 83.66% this month so far. Awesome.

We sold a covered call, despite we are holding just 62 shares with this stock. In case our strike price will get touched, we will have to buy the missing 38 stocks in the open market (~ $2,450). There are two reasons why we sold a covered, before reaching 100 shares:

  • it helped to increase our buying power
  • we feel confident enough to take this little risk

Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in Silicon Valley.

As we have been buying INTC using dollar-cost averaging our average buy price is: $57.28

here is our trade setup:

  • SLD 1 INTC APR 16 '21 73 Call Option 0.52 USD

what can happen next:

INTC is trading below our strike price of $73 at the expiry date (April 23, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case INTC is trading above our strike price of $73, our 100 shares get called away at the strike price of $73 and we realize our max gain of $1,671 or 29.17% potential total income return in 45 days

Break-even: $56.29

Selling covered calls with Intel Stock
Selling covered calls with Intel Stock
  • Running Total : 6 Trade since March 5, 2021
  • Options income $99