On April 1, 2021, we roll forwarded 1 covered call on NASDAQ:LI stock expiring on April 09, 2021. For this trade, we got $25 (before commissions)
This trade comes as the #6 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.8% from our $2,800 monthly goal. While in total we have reached already 4.87% this month so far. Awesome.
We have been in this trade since March 02, when we sold almost covered call, see: Sold 1 Covered Call on LI - Potential income return -10.27% in 3 days
Li Auto Inc., also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou
As we have been buying LI using dollar-cost averaging our average buy price is: $28.56
here is our trade setup:
SLD 1 LI APR 09 '21 28 Call Option 0.25 USD
what can happen next:
LI is trading below our strike price of $28 at the expiry date (April 9, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis.
In case LI is trading above our strike price of $28, our 100 shares get called away at the strike price of $28 and we realize our max gain, +$67.8 or 2.37% potential income in 39 days