Roll Forward Covered Call on Pfizer (NYSE:PFE) - Potential income return 3.14% in 86 days (13.31% annualized)

On January 29, 2021, we roll forwarded 1 covered call on Pfizer (NYSE:PFE)  stock expiring on February 12, 2021. For this trade, we got a $16 premium (before commissions).

This trade comes as the #48 in the month of January, according to our trading plan for this month, the premium generated from this trade makes us about 0.54% from our $2,500 monthly goal. While in total we have reached already 127.91% so far. Awesome

As we were buying PFE stock throughout the year 2020, our average buy price is: $37.87

here is our trade setup:

  • SLD 1 PFE FEB 12 '21 40 Call Option 0.16 USD

what can happen next:

PFE is trading below our strike price of $40 at the expiry date (February 12, 2021), 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 $332.40 or 8.77% potential total income return in 86 days

Break-even: $36.7

Selling covered calls on PFE stock
Selling covered calls on PFE stock
  • Running Total  8 Trade since November 18, 2020
  • Options income $184