Roll Forward TWO AUG 21 '20 5 2x Covered Calls 0.15 USD (18.79% potential income in 74 days)

On July 20, 2020 we roll forwarded 2 covered calls on TWO stock  - a position established on June 9, 2020 with the strike prices at $7, see: Sold 2 Covered Calls on TWO stock - Potential income return 30.7% in 10 days For this roll forward we got an additional $27 (before commissions)

This trade comes as the #24 in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us about 3.51% from our $700 monthly goal, while in total we have already reached 78.43% from our monthly goal.

This is already second time we are rolling tris trade in the future. See: Roll Forward and Down TWO JUL 17 '20 5 2x Covered Calls 0.15 USD (17.02% potential income in 38 days)

As  our prievious contract with TWO expured below our strike price on the expiry date, we just roll forwarded to the next closest expiry in August. Unfortunately, or for luck,  TWO has only monthly options. This is something to remember when looking for a quick buck. 

  • SLD 2 TWO AUG 21 '20 6 Call Option 0.135 USD

what can happen next:

TWO is trading below our strike price of $6 at the expiry date (August 21, 2020), in such a case, we keep the premium and sell more covered calls to lower our cost basis. 

In case TWO is trading above our strike price of $6, our 200 shares get called away at the strike price of $6 and we realize our max gain $239.4, or 18.79% potential income in 74 days

New Break-even price: $4.8

Selling Covered Calls with TWO stock
Selling Covered Calls with TWO stock
  • Running Total 4 Trades since June 9, 2020
  • Options income: $313