Roll Forward SPCE JUN 26 '20 16.5 Covered Call Option 0.32 USD (10.3% potential income in 21 days)

On June 19, 2020 we roll forwarded 1 covered call on SPCE stock  - a position established on June 5, 2010 with the strike price of $16.50, see: Covered Call on SPCE - Potential income return 7.2% in 7 days. For this roll forward covered call we got an additional $32 (before commissions)

As SPCE was trading below our strike price on the expiry date, we just roll forward to the next week's expiry

  • SLD 1 SPCE JUN 26 '20 16.5 Call Option 0.32 USD

what can happen next:

SPCE is trading below our strike price of $16.5 at the expiry date (June 19, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis. 

In case SPCE is trading above our strike price of $16.5, our 100 shares get called away at the strike price of $16.5 and we realize our max gain $165, or 10.3% potential income in 21 days

Break-even: $14.85

Selling covered calls and puts with SPCE stock
Selling covered calls and puts with SPCE stock
  • Running Total  9 Trades since April 27, 2020
  • Trade P/L $186