On October 30, 2020, we roll forward 1 covered call with ET stock, a position established at the start of October (Covered Call on ET - Potential income return 5.46% in 56 days (35.54% annualized))
This trade comes as the #45 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 1.1% from our $600 monthly goal, while in total we have already reached 86.35% so far.
here is our trade setup:
SLD 1 ET NOV 27 '20 6 Call Option 0.09 USD
what can happen next:
If ET is trading below our strike price of 6 at the expiry date (November 27, 2020) we keep the premium and sell more covered calls to lower our cost basis.
In case ET is trading above our strike price of $6, our shares get called away at the strike price of $6 and we realize our max gain $39.4 (we made additional premium as we sold put options), or 6.56% potential income in 84 days.
Our break-even price: $5.62
Running Total 28 Trades since April 6, 2020
Options Income: $373