Roll Forward BCS SEP 18 '20 6 Covered Call Option 0.08 USD (6% potential income in 57 days)

On August 24, 2020 we roll forwarded 1 covered call of BCS stock  - a position originally established on July 21, 2020 with buying 100 shares of BCS paying $5.93 per share and simultaneously sold $6 strike price covered call. See: Covered Call on BCS - Potential income return 5.05% in 31 days

This trade comes as the #48 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us just 0.74% from our $750 monthly goal, while in total we have already reached 108.48% from our monthly goal so far.

BCS stands for Barclays PLC - London headquartered multinationl bank holding company - Barclays plc is a British multinational investment bank and financial services company, headquartered in London, England. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth management, and investment management

Here at we just love bank stocks, we currently are holding/trading following tickers - BAC, WFC, INGA (Amsterdam), PBCT, and now we are adding BCS. 

BCS is a dividend-paying stock (current yield is about 6% per anum) but unlike other dividend stocks - BCS is paying dividend twice per year

Here is our trade setup:

  • SLD 1 BCS SEP 18 '21 6 Call Option  0.08 USD

what can happen next:

If BCS is trading below our strike price of $6 at expiry date (September 18, 2020) we keep the premium and sell more covered calls to lower our cost basis. 

In case BCS is trading above our strike price of $6, our shares get called away at strike price $6 and we realize our max gain $35.6, or 6% potential income in 57 days. 

Our break-even price: $5.58

Selling Covered Calls with BCS stock
Selling Covered Calls with BCS stock
  • Running Total 5 Trades since July 21, 2020
  • Options income: $31