Roll Forward and down 1 Covered Call on VTRS - Potential income return -14.16% in 73 days

On April 16, 2021, we roll forwarded 1 covered call on VTRS stock expiring on April 23, 2021. For this trade, we got $10 (before commissions)

This trade comes as the #78 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 0.27% from our $2,800 monthly goal.  While in total we have reached already 125.16% this month 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 APR 23 '21 13.5 Call Option 0.1 USD

what can happen next:

VTRS is trading below our strike price of $13.5 at the expiry date (April 23, 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 $13.5, our 100 shares get called away at the strike price of $35.5 and we realize our max gain negative - $233.4 or -14.16% potential total income loss in 74 days

Break-even: $15.87