Roll Forward and down 1 Covered Call on LI -7.85% potential income return in 46 days

On April 9, 2021, we roll forwarded 1 covered call on NASDAQ:LI  stock expiring on April 16, 2021. For this trade, we got $18 (before commissions)

This trade comes as the #43 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 0.55% from our $2,800 monthly goal.  While in total we have reached already 80.95% 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: $27.56

here is our trade setup:

  •     SLD 1   LI   APR 16 '21 25 Call Option   0.18   USD    

what can happen next:

LI is trading below our strike price of $25 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 LI is trading above our strike price of $25, our 100 shares get called away at the strike price of $25 and we realize our max gain (loss), -$216.6 or -7.85% potential income in 45 days

Break-even: $26.41