Roll Forward GPS MAY 22 '20 8 Covered Call Option 0.27 USD

For the second week in a row, we keep rolling forward covered call on GPS stock, a position I established earlier at the start of the month. 

For this roll forward to the next week's expiry, we got additional credit of $0.27. We call it a wheel strategy. 

Here is the trade setup:

  • SLD 1 GPS MAY 22 '20 8 Call Option  0.27 USD  

This position was originally established just 14 days ago by buying 100 shares of GPS at $7.59

Covered calls on GPS stock

With today's roll forward our new break-even price is $6.92

  • Running Total  5 Trades since May 1, 2020
  • Trade P/L $67, with capital at risk $759
  • 8.8% income from premium
  • Potential max return if shares called away: 14.22% in 21 days