Roll Forward and down 2 Covered Call on Corbus Pharmaceuticals (NASDAQ:CRBP) - Potential income return 2.1% in 269 days

On April 14, 2021, we roll forwarded and rolled down 1 covered call on CRBP stock with expiry on May 21, 2021. For this trade, we got a small $19.6 premium (after commissions).

This trade comes as the #61 in the month of April, according to our trading plan for this month, the premium generated from this trade makes us about 0.7% from our $2,800 monthly goal.  While in total we have reached already 104.38% this month so far. Awesome.

This trade was originally established as a credit spread on August 27, we got assigned 100 shares on September 14, 2020 and since then we have been selling covered calls

Corbus Pharmaceuticals Holdings, Inc. is a Phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat inflammatory and fibrotic diseases by leveraging its pipeline of rationally designed, endocannabinoid system-targeting drug candidate.

Here is our trade setup:

  • SLD 2 CRBP MAY 21 '21 2 Call Option 0.22 USD

what can happen next:

CRBP is trading below our strike price of $2 at the expiry date (May 21, 2021), in such a case, we keep the premium and sell more covered calls to lower our cost basis.

In case CRBP is trading above our strike price of $2, our 200 shares get called away at the strike price of $2 and we realize our max gain $4.2+ or  2.1% potential income in 269 days

Break-even: $1.97