Roll Forward and Up 7 Covered Calls on SOLO – 67.6% potential income return in 123 days

On February 19, 2021, we roll forwarded and roll up (diagonal calendar)  7 covered calls on SOLO  stock expiring on March 26, 2021. For this trade, we got a $623 premium (before commissions)

This trade comes as #44 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 20.20% from our $3,000 monthly goal.  .While in total we have reached already 120.97% so far. Awesome.

This trade was originally established on November 23, 2021 as a credit spread, see:  Sold 7 Credit Spreads on SOLO – 6.02% potential income return in 25 days

ElectraMeccanica Vehicles Corporation is a Canadian designer and manufacturer of environmentally efficient electric vehicles headquartered in Vancouver, British Columbia. Established in 2015, the company’s flagship vehicle is the purpose-built, single-seat three wheeled Electric Vehicle called the SOLO

here is our trade setup:

  • SLD 7 SOLO MAR 26 '21 9.5 Call Option 0.89 USD

what can happen next:

SOLO is trading below our strike price of $9.5 at the expiry date (March 26, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SOLO is trading above our strike price of $9.5, our 700 shares get called away at the strike price of $9.5 and (as we have already collected some premium from selling puts and rolling this trade in the past) we realize our max gain $3,549 or 67.6% potential return of income in 123 days

Break-even: $4.45

Selling covered calls with SOLO stock
Selling covered calls with SOLO stock
  • Running Total  22 Trades since November 23, 2020

  • Options income: $3,047