Roll Forward SDC JUL 31 '20 9 Covered Call Option 0.29 USD (11.73% potential income in 55 days)

On July 17, 2020 we roll forwarded 1 covered call on SDC stock  - a position originally established at the start of June with the strike price of $9.00, see: Covered Call on SDC - Potential income return 6.45% in 7 days. For this roll forward covered call we got an additional $29 (before commissions)

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 #19 in the month of July, and if we stick with our trading plan for this month, premium generated from this trade makes us about 2.8% from our $700 monthly goal, while in total we have already reached 52.17% from our monthly goal so far in July. Amazing. 

We opted for a 14DTE expiry trade

  • SLD 1 SDC JUl 31 '20 29 Call Option 0.29 USD

what can happen next:

SDC is trading below our strike price of $9 at the expiry date (July 31, 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, our 100 shares get called away at the strike price of $9 and we realize our max gain $103.6, or 11.73% potential income in 54 days

Break-even: $7.96

Selling covered calls and puts with SDC stock
Selling covered calls and puts with SDC stock
  • Running Total: 15 Trades since April 27, 2020
  • Options Income: $304