Roll Forward PBCT SEP 18 '20 12 Covered Call Option 0.05 USD (6.14% potential income in 49 days)

On August 24, 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. See: Covered Call on PBCT - Potential income return 5.92% in 21 days

For todays trade, we got a small $5 premium (before commissions). As PBCT is part from our dividend portfolio, we are happy for any bits

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 about 6% per anum). PBCT is paying a dividend in the following months - February, May, August and November

This trade comes as the #46 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us just 0.34% from our $750 monthly goal, while in total we have already reached 104.32% from our monthly goal so far.

Here is our trade setup:

  • SLD 1 PBCT SEP 18 '21 12 Call Option  0.05 USD

what can happen next:

If PBCT is trading below our strike price of $12 at expiry date (September 18, 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 strike price $12 and we realize our max gain $70.0, or 6.14% potential income in 49 days. 

Our break-even price: $11.31

Selling covered calls with PBCT stock
Selling covered calls with PBCT stock
  • Running Total 3 Trades since July 31, 2020
  • Options income: $10