On August 14, 2020 we roll forward 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 #33 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 1.81% from our $750 monthly goal, while in total we have already reached 65.52% from our monthly goal so far.
Since establishing this position back in June 2020 we have sold (roll forwarded) 3 additional covered calls with this stock:
- Roll Forward SDC JUL 17 '20 9 Covered Call Option 0.30 USD (8.72% potential income in 41 day)
- Roll Forward SDC JUL 31 '20 9 Covered Call Option 0.29 USD (11.73% potential income in 55 days)
- Roll Forward SDC AUG 14 '20 9.5 Covered Call Option 0.47 USD (22.44% potential income in 69 days)
here is our trade setup:
- SLD 1 SDC SEP 11 '20 9.5 Call Option 0.16 USD
what can happen next:
SDC is trading below our strike price of $9.5 at the expiry date (September 11, 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 $211.80, or 23.98% potential income in 97 days
- Running Total: 21 Trades since April 27, 2020
- Options Income: $486