Roll Forward and Down INGA AUG 7 '20 6.3 Covered Call Option 0.03 EUR (1.79% potential income in 53 days)

On August 3, 2020, we roll forward and roll down 1 covered call on INGA (Amsterdam) stock  - a position originally on June 16, 2020 with the strike price of EUR 6.7, see: Covered Call on INGA - Potential income return 4.83% in 3 days  For this roll forward covered call we get an additional EUR 3 (before commissions)

This trade comes as the #1 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us about 0.29% from our $750 monthly goal. 

We decided to roll down our strike price after the stock price dropped from the range EUR 6.4 to EUR 6. We could let it stay and wait for recovery or ... we decided or. Trade small, trade often.

As our break-even price prior to this trade was EUR 6.18, we are not losing anything, we are just giving away gains we made in the previous weeks. 

Here is our trade setup

  • SLD 1 ING AUG 7 '20 6.3 Call Option 0.03 EUR

what can happen next:

On the expiry date (August 7, 2020), INGA is trading below our strike price of EUR 6.3, in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case INGA is trading above our strike price of EUR 6.3, our shares get called away at the strike price of EUR 6.3 and we realize our max gain  EUR 12 or 1.79% potential income in 53 days

Our break even price: EUR 6.15

Selling covered calls and puts with INGA stock
Selling covered calls and puts with INGA stock
  • Running Total  14 Trades since May 11, 2020
  • Options Income: EUR 106