Roll Forward and Roll Down Bank of America (BAC) OCT 16 '20 28 Covered Call Option 0.10 USD (1.41% potential income in 129 days / 3.95% annualized)

On September 22, 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 #30 in the month of September, according to our trading plan for this month, the premium generated from this trade makes us about 0.95% from our $800 monthly goal, while in total we have already reached 71.41% this month

here is our trade setup:

  • SLD 1 BAC OCT 16 '20 28 Call Option 0.10 USD

what can happen next:

BAC is trading below our strike price of $28 at the expiry date (October 16, 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 $28, our 100 shares get called away at the strike price of $28 and we realize our max gain $40.6 or 1.41% potential income in 129 day

Break-even: $27.60

Selling covered calls with BAC stock

  • Running Total 10 Trades since June 8, 2020

  • Options Income: $137