Roll Forward NRZ SEP 18 '20 8 Covered Call Option 0.30 USD (8.89% potential income in 45 days)

On August 21, 2020 we roll forwarded 1 covered call on NRZ stock  - a position originally established on August 4, 2020 with buying 100 shares of NRZ paying $7.78 per share and simultaneously sold $8.00 strike price covered call. See: Covered Call on NRZ - Potential income return 5.34% in 17 days

This trade comes as the #44 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us about 3.68% from our $750 monthly goal, while in total we have already reached 84.93% from our monthly goal so far.

here is our trade setup:

  • SLD 1 NRZ SEP 18 '20 8 Call Option 0.30 USD

what can happen next:

SDC is trading below our strike price of $8 at the expiry date (September 18, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SDC is trading above our strike price of $8, our 100 shares get called away at the strike price of $8 and we realize our max gain $69.20, or 8.89% potential income in 45 days

Break-even: $7.02

Selling covered calls with NRZ stock
Selling covered calls with NRZ stock
  • Running Total  13 Trades since April 9, 2020
  • Options income: $277