Roll Forward and Roll Up Tilray (NASDAQ:TLRY) NOV 20 '20 7 Covered Call 0.16 USD Covered Call - Potential income return 14.05% in 93 days / 55.10% annualized

On October 2, 2020, we roll forward and roll up 1 covered call on NASDAQ:TLRY stock - a position originally established on August 17 2020, with buying 100 shares of TLRY paying $6.5 per share and simultaneously selling $6.5 strike price covered call.

With TLRY stock tanking under $5 per share we decided to roll forward with expiry in November and roll up to leave a room for some nice profit, if the stock will recover.

This trade comes as the #5 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 2.26% from our $600 monthly goal, while in total we have already reached 10.53% so far.

Tilray is a Canadian pharmaceutical and cannabis company, incorporated in the United States with primary operations headquartered in Toronto, Ontario. Tilray also has operations in Australia, New Zealand, Germany, Portugal, and Latin America

here is our trade setup:

  • SLD 1 TLRY OCT  23 '20 5.5 Call Option 0.14 USD

what can happen next:

TLRY is trading below our strike price of $7 at the expiry date (November 20, 2020), in this case, we keep the premium and sell more covered calls to lower our cost basis. 

In case TLRY is trading above our strike price of $7, our 100 shares get called away at the strike price of $7  we realize our max gain $98.4 or 14.05% potential income in 93 days

Break-even: $6.02

Selling covered calls on TLRY stock
Selling covered calls on TLRY stock

  • Running Total  18 Trades since July 23, 2020

  • Options income: $175