Roll Forward Covered Call on Pfizer (NYSE:PFE) - Potential income return 2.24% in 43 days (18.99% annualized)

On December 18 18, 2020, we roll forwarded 1 covered call on Pfizer (NYSE:PFE)  stock expiring on December 31, 2020. For this trade, we got a $31 premium (before commissions).

This trade comes as the #30 in the month of December, according to our trading plan for this month, the premium generated from this trade makes us about 2.6% from our $1,100 monthly goal. While in total we have reached already 95.42% so far. Awesome.

Pfizer stock is part of our Partnership fund, we started acquiring Pfizer stock in January 2020, and it took us 11 months to have 100 stocks 

As we were buying PFE stock throughout the year, our average buy price is: $37.87

 

here is our trade setup:

  • SLD 1 PFE DEC 31 '20 40 Call Option 0.31 USD

what can happen next:

PFE is trading below our strike price of $40 at the expiry date (December 31, 2020), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case PFE is trading above our strike price of $40, our 100 shares get called away at the strike price of $40 and we realize our max gain $298.2 or 7.87% potential total income return in 43 days

Break-even: $37.03

Selling covered calls with Pfe stock
Selling covered calls with Pfe stock
  • Running Total  4 Trade since November 18, 2020
  • Options income $100