Roll Forward and down 1 Covered Call on VTRS - Potential income return -5.92% in 44 days

On March 10, 2021, we roll forward and roll down  1 covered call on VTRS stock expiring on March 19, 2021. For this trade, we got a $0.1 premium (before commissions).

This trade comes as #77 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 0.38% from our $2,000 monthly goal. While in total we have reached already 143.37% 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 19 '21 15 Call Option 0.1 USD

what can happen next:

VTRS is trading below our strike price of $15 at the expiry date (March 19, 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 $15, our 100 shares get called away at the strike price of $15 and we realize our max gain negative - $97.6 or -5.91% potential total income loss in 44 days

Break-even: $16.00

Selling covered calls with VTRS stock
Selling covered calls with VTRS stock
  • Running Total  11 Trades since November 19, 2020
  • Options income $92