Roll forward and down 2 Covered Calls on HUGE - Potential income return 19.87% in 159 days

On April 14, 2021, we roll forwarded 2 covered calls on HUGE stock with an expiry set on July 16, 2021. For this trade, we got a $44 premium (before commissions).

This trade was originally established back on February 10, 2021, with buying 200 shares with HUGE at $3.19, see: Sold 2 Covered Calls on HUGE - Potential income return 68.52% in 9 days

This trade comes as the #62 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 105.78% this month so far. Awesome.

here is our trade setup:

  • SLD 2 HUGE JUL 16 '21 2.5 Call Option 0.22 USD

what can happen next:

HUGE is trading below our strike price of $2.5 at the expiry date (July 16, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case HUGE is trading above our strike price of $2.5, our 200 shares get called away at the strike price of $2.5 and we realize our max gain $126.8 or 19.87% potential total income return in 159 days

Break-even: $2.34