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
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