Roll Forward GPS MAY 15 '20 8 Covered Call Option 0.27 USD

With GPS stock price hovering around $7.91 on Friday evening just before the options expiry, I decided not to risk with a possible assignment of our 100 shares getting called away at $8 and bought back call option for $0.02, to roll forward it the next week's expiry for additional credit $0.29. We call it a wheel strategy. 

Here is the trade setup:

  • BOT 1 GPS MAY 08 '20 8 Call Option 0.02 USD  
  • SLD 1 GPS MAY 15 '20 8 Call Option  0.29 USD  

This trade was originally launched just 7 days ago by buying 100 shares of GPS at $7.59

Covered calls with GPS

With today's roll forward our new break-even price is $7.17

  • Running Total  4 Trades since May 1, 2020
  • Trade P/L $42, with capital at risk $759
  • 5.53% income from premium
  • Potential max return if shares called away: 10.93% in 14 days