Roll Forward TWO SEP 18 '20 6 2x Covered Calls 0.1 USD (19.9% potential income in 99 days)

On August 24, 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 $20 (before commissions)

This trade comes as the #49 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us just 2.02% from our $750 monthly goal, while in total we have already reached 110.43% from our monthly goal so far.

This is already the third time we are rolling tris trade in the future. See:

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

  • SLD 2 TWO SEP 18 '20 6 Call Option 0.10 USD

what can happen next:

TWO is trading below our strike price of $6 at the expiry date (September 18, 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 $254.6, or 19.9% potential income in 99 days

New Break-even price: $4.73

Selling Covered Calls with TWO stock
Selling Covered Calls with TWO stock

  • Running Total 6Trades since June 9, 2020
  • Options income: $328