Roll Forward Covered Call on Pfizer (NYSE:PFE) - Potential income return 8.97% in 128 days

On February 12, 2021, we roll forwarded 1 covered call on Pfizer (NYSE:PFE)  stock expiring on March 26, 2021. For this trade, we got a $10 premium (before commissions).

This trade comes as #36 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 0.25% from our $3,000 monthly goal.  .While in total we have reached already 83.82% 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 MAR 26 '21 40 Call Option 0.10 USD

what can happen next:

PFE is trading below our strike price of $40 at the expiry date (March 26, 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 $340.00 or 8.97% potential total income return in 128 days

Break-even: $36.63

Selling covered calls with PFE stock
Selling covered calls with PFE stock
  • Running Total  11 Trade since November 18, 2020
  • Options income $250