Roll Forward and Roll Down Bank of America (BAC) NOV 27 '20 27.5 Covered Call Option 0.15 USD (0.11% potential income in 172 days / 0.23% annualized)

On October 19, 2020, we roll forward and roll down 1 covered call on BAC stock - a position originally established at the start of June with the strike price of $29.00

BAC is our "worst" investment as of now, we bought 100 shares at $28.67, and shortly after our buy BAC dipped to $23-$24 range, making it harder for us to get a decent options income, without sacrificing our strike prices.

This trade comes as the #23 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 2.01% from our $600 monthly goal, while in total we have already reached 68.95% so far.

here is our trade setup:

  • SLD 1 BAC NOV 27 '20 27.5 Call Option 0.15 USD

what can happen next:

BAC is trading below our strike price of $27.5 at the expiry date (November 27, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis.

In case BAC is trading above our strike price of $27.5, our 100 shares get called away at the strike price of $27.5 and we realize our max gain $3.2 or 0.11% potential income in 172 day

Break-even: $27.48

Selling covered calls with BAC
Selling covered calls with BAC
  • Running Total 10 Trades since June 8, 2020

  • Options Income: $150