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
- Running Total 13 Trades since April 9, 2020
- Options income: $277