Roll Forward SDC AUG 14 '20 9.5 Covered Call Option 0.47 USD (22.44% potential income in 69 days)

On July 31, 2020 we roll forward and roll up 1 covered call on SDC stock  - a position originally established on June 5, 2020 with buying 100 shares with SDC paying $8.83 per share and simultaneously sold $9.00 strike price covered call. See: Covered Call on SDC - Potential income return 6.45% in 7 days

SDC stands for SmileDirectClub - a teledentistry company listed on Nasdaq. According to Google, it has a market capitalization of some 2.9 bln. Impressive.

This trade comes as the #41 in the month of July, and if we stick with our trading plan for this month, premium generated from this trade makes us about 6.37% from our $700 monthly goal, while in total we have already reached 122.77% from our monthly goal so far in July. Amazing. 

    Since establishing this position back in June 2020 we have sold (roll forwarded) 2 additional covered calls with this stock:

    Today we made the third roll forward, and whats not less important - a roll up from the strike price of $9 to $9.5

    We opted for a 14DTE expiry trade

    • SLD 1 SDC AUG 14 '20 9.5 Call Option 0.47 USD

    what can happen next:

    SDC is trading below our strike price of $9,5 at the expiry date (August 14, 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 $9.5, our 100 shares get called away at the strike price of $9.5 and we realize our max gain $198.2, or 22.44% potential income in 69 days

    Break-even: $7.45

    Selling covered calls and puts with SDC stock

    Selling covered calls and puts with SDC stock
    • Running Total: 17 Trades since April 27, 2020
    • Options Income: $395