Roll Forward and up 1 Covered Call on VTRS - Potential income return -2.48% in 66 days

On March 29, 2021, we roll forward and roll up  1 covered call on VTRS stock expiring on April 16, 2021. For this trade, we got a $0.09 premium (before commissions).

This trade comes as #188 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.33% from our $2,000 monthly goal. While in total we have reached already 235.55% so far. Awesome.

As we have been buying VTRS using dollar-cost averaging  our average buy price is: $16.48

here is our trade setup:

  • SLD 1 VTRS APR 16 '21 15.5 Call Option 0.09 USD

what can happen next:

VTRS is trading below our strike price of $15.5 at the expiry date (April 16, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case VTRS is trading above our strike price of $15.5, our 100 shares get called away at the strike price of $15.5 and we realize our max gain negative - $41 or -2.48% potential total income loss in 66 days

Break-even: $15.94

Selling covered calls with VTRS stock
Selling covered calls with VTRS stock
  • Running Total  15 Trades since November 19, 2020
  • Options income $30