Roll Forward and Down 1 Covered Call on VTRS - Potential income return -0.23% in 30 days

On February 26, 2021, we roll forward and roll down  1 covered call on VTRS stock expiring on March 05, 2021. For this trade, we got a $11 premium (before commissions).

In case our shares will get called away this week - we will actually close this trade with a loss. As our aim is not getting our shares called away, in case our strike price will be challenged we will roll up and forward for a credit.

This trade comes as #58 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 0.28% from our $3,000 monthly goal.  .While in total we have reached already 157.98% 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 05 '21 16 Call Option 0.11 USD

what can happen next:

VTRS is trading below our strike price of $16 at the expiry date (March 05, 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, our 100 shares get called away at the strike price of $16 and we realize our max gain -$3.8 or -0.23% potential total income return in 30 days

Break-even: $16.05

Selling covered calls with VTRS stock
Selling covered calls with VTRS stock
  • Running Total  6 Trades since November 19, 2020
  • Options income $82