Roll Forward and Up 4 Covered Calls on SmileDirectClub (NASDAQ:SDC) - Potential income return 13.76% in 57 days

On February 12, 2021, we roll forward and up (calendar diagonal) covered call on NASDAQ:SDC  stock expiring on February 19, 2021. For this trade, we got a $88 premium (before commissions)

This trade comes as #35 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 2.61% from our $3,000 monthly goal.  .While in total we have reached already 83.57% so far. Awesome.

This trade was originally established back on January 8, 2021, just shortly after we got assigned 400 shares at $13 each, see: Sold 4 Credit Spreads on SDC – 1.93% potential income return in 15 days

here is our trade setup:

  • SLD 4 SDC FEB 19 '21 14 Call Option 0.22 USD

what can happen next:

SDC is trading below our strike price of $14 at the expiry date (February 19, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SDC is trading above our strike price of $14, our 400 shares get called away at the strike price of $14 , and (as we have already collected some premium from selling puts ans calls in the past) we realize our max gain $716 or 13.76% potential return of income in 57 days

Break-even: $12.23

Selling covered calls with SDC stock
Selling covered calls with SDC stock
  • Running Total 57 Trades since April 27, 2020

  • Options income: $1,508