Roll Forward and UP 1 Covered Call on VTRS - Potential income return 2.71% in 37 days

On March 02, 2021, we roll forward and roll up  1 covered call on VTRS stock expiring on March 12, 2021. For this trade, we got a $1 premium (before commissions).

This trade comes as #12 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about -0.07% from our $2,000 monthly goal. While in total we have reached already 53.32% 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 MAR 12 '21 16.5 Call Option 0.01 USD

what can happen next:

VTRS is trading below our strike price of $16.5 at the expiry date (March 12, 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 $16.5, our 100 shares get called away at the strike price of $16.5 and we realize our max gain +44.8 or 2.71% potential total income return in 37 days

Break-even: $16.07

Selling covered calls on VTRS stock
Selling covered calls on VTRS stock
  • Running Total  7 Trades since November 19, 2020
  • Options income $80