Roll Forward and Down 1 Covered Call on Pfizer (NYSE:PFE) - Potential income return -0.11% in 163 days

On March 26, 2021, we roll forwarded 1 covered call on Pfizer (NYSE:PFE)  stock expiring on April 30, 2021. For this trade, we got a $5.8 premium (after commissions).

This trade comes as #178 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.29% from our $2,000 monthly goal. While in total we have reached already 232.77% so far. Awesome.

As we were buying PFE stock throughout the year 2020, our average buy price is: $37.87

here is our trade setup:

  • SLD 1 PFE APR 30 '21 37.5 Call Option 0.33 USD

what can happen next:

PFE is trading below our strike price of $37.5 at the expiry date (April 30, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case PFE is trading above our strike price of $37.5, our 100 shares get called away at the strike price of $37.5 and we realize a minor loss of -$4.2 or negative -0.11% total income return in 163 days

Break-even: $36.56

Selling covered calls with PFE stock
Selling covered calls with PFE stock
  • Running Total  18 Trade since November 18, 2020
  • Options income $236