Roll Forward Covered Call on T - Potential income return 4.93% in 96 days

On February 12, 2021, we roll forward 1 covered call on NYSE:T  stock, set to expire in March 12, 2021. For this trade, we got a $27 premium (before commissions)

This trade comes as #30 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 0.82% from our $3,000 monthly goal.  .While in total we have reached already 72.56% so far. Awesome.

We have been into this trade since January 8, when we got assigned 100 shares with T at $29.5, see: Covered Call on T - Potential income return 3.62% in 49 days

here is our trade setup:

  • SLD 1 T MAR 12 '21 30 Call Option 0.27 USD

what can happen next:

T is trading below our strike price of $30  at the expiry date (March 12, 2021), in such case, we keep the premium and sell more covered calls to lower our cost basis. 

In case T is trading above our strike price of $30, our 100 shares get called away at the strike price of $30, and (as we have already collected some premium from selling puts in the past) we realize our max gain $148 or 4.93% potential return of income in 96 days

Break-even: $28.54

Selling covered calls with T stock
Selling covered calls with T stock
  • Running Total  10 Trades since October 20, 2020
  • Options Income: $123