Roll Forward Energy Transfer (NYSE:ET) NOV 27 '20 6 Covered Call Option 0.09 USD (6.56% potential income in 84 days / 28.50% annualized)

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

Selling covered calls with ET stock
Selling covered calls with ET stock
  • Running Total  28 Trades since April 6, 2020

  • Options Income: $373