Roll Forward PBCT NOV 20 '20 12 Covered Call Option 0.09 USD (6.71% potential income in 112 days / 21.80% annualized)

On September 23, 2020, we roll forwarded 1 covered call on PBCT stock - a position originally established on July 31, 2020, with buying 100 shares of PBCT paying $11.4 per share and simultaneously sold $12.00 strike price covered call.

For today’s trade, we got a small $9 premium (before commissions). As PBCT is part of our dividend portfolio, we are happy for any bits, even if these bits are coming from two-month long options contracts.

PBCT stands for People's United Financial, Inc. an American bank holding company that owns People's United Bank. The bank operates 403 branches in Connecticut, southeastern New York State, Massachusetts, Vermont, Maine, and New Hampshire. It is the second-largest full-service bank in New England, one of the largest in the northeast, and the 46th-largest in the United States

PBCT is a dividend-paying stock (current yield is above 6% per anum). PBCT is paying a dividend in the following months - February, May, August, and November

This trade comes as the #32 in the month of September, according to our trading plan for this month, the premium generated from this trade makes us about 0.82% from our $800 monthly goal, while in total we have already reached 73.19% so far this month

Here is our trade setup:

  • SLD 1 PBCT NOV 20 '21 12 Call Option 0.09 USD

what can happen next:

If PBCT is trading below our strike price of $12 at the expiry date (November 20, 2020) we keep the premium and sell more covered calls to lower our cost basis.

In case PBCT is trading above our strike price of $12, our shares get called away at the strike price $12 and we realize our max gain $76.6, or 6.71% potential income in 112 days.

Our break-even price: $11.25

  • Running Total 4 Trades since July 31, 2020

  • Options income: $17